With plans to begin selling electric SUVs in the United States by the end of the year, the smaller, a young Vietnamese automaker, has been making news. At the 2022 New York International Auto Show, the two-row 2023 VinFast VF 8 and the bigger, three-row 2023 VinFast VF 9 were on display. The company has also filed documents for a U.S. initial public offering and recently revealed plans to construct a car assembly and battery plant in North Carolina, with manufacturing set to start by July 2024.
VinFast has almost limitless funding and resources, Western talent, operates quickly, and is riding the converging wave of desire for SUVs and electric vehicles. It plans to offer the same levels of technology and features as the competition but at a lower price point with a leased battery. It also has a brand-new, sizable manufacturing facility in Vietnam, styling it hopes will make VinFast vehicles stand out on the road, and a plan to do all of this by the end of the year.
2024 VinFast VF6 and VF7 Electric SUVs
However, it remains to be seen if the vehicles are distinctive enough, the quality high enough, and the offer enticing enough for customers to take a chance on an unproven Vietnamese carmaker.
Who Owns VinFast?
Due to its affiliation with Vingroup, the largest private firm in Vietnam, VinFast is unlikely to be a passing fad. Pham Nhat Vuong, a billionaire who started off by selling ramen noodles in Ukraine in 1993, is the owner of the conglomerate. To launch a business organization, Vuong moved back to his native Vietnam. He is now known as the Chairman and has dedicated his life to building businesses and providing services that would improve the quality of life in his home nation.
Vingroup is now widely used. It is both a sizable non-profit with a $39 billion real estate and hotel portfolio. The luxury resort Vinpearl network has a partnership with VinWonders entertainment parks. The cheap housing was where the residential real estate branch of Vinhomes began; later, urban complexes with more facilities were added. There is also the non-profit public transportation system. VinBuses are trendy green vehicles with WiFi and air conditioning.
The chairman established VinFast in 2017 to produce buses, cars, and scooters. The Chairman has huge intentions and is working quickly. On what was formerly swampland in Hai Phong, close to Hanoi, VinFast produced its first three vehicles and constructed an industrial complex with a vehicle assembly factory and VinES battery plant in under 21 months. The research and development facility in Hanoi is where Vingroup's tech companies that specialize in artificial intelligence, big data, and battery development work on driver-assist technologies.
VinFast swiftly overtook Hyundai, Toyota, and Kia as the fourth best-selling brand in Vietnam. With purchasers from the middle class in mind, each model currently dominates its market. The VinFast e34 compact crossover was included as the company's first electric car for the Vietnamese market. Deliveries started in December 2021, and on April 7, 100 owners gathered in Ha Long for an electric caravan that would travel 200 km (125 miles) to Cape Sa Vi. The owners waved as they began their journey.
EV Strategy Set In Motion
By the end of 2022, VinFast would discontinue producing cars with internal combustion engines and only produce electric vehicles. The chairman would pay the associated expenses because he believed it was crucial for VinFast to be a pioneer in clean, intelligent mobility. The change of direction occurs as several new models are already under development. The bigger three-row 2023 VinFast VF 9 and mid-size 2023 VinFast VF 8 were created to be available as either gasoline-powered or electric vehicles. In the ICE versions, the battery pack was designed to accommodate the fuel tank for simplicity in assembly.
The chairman's long-term goal is to position VinFast as the top smart EV brand in ten years. VinFast does not aim to compete with Tesla. The goal is to make electric automobiles accessible to normal consumers, a goal first stated by Tesla CEO Elon Musk, but which has not yet been achieved. Vingroup plans to contribute to a worldwide network of accessible charging in other markets by installing charge stations in Vietnam as well.
Since smart mobility has become the industry standard, the automaker cannot be distinguished just by its aim. Although the styling is good, only time will tell if it is sufficiently distinctive. Although we place a high premium on quality, it is hard to predict whether all bugs will be fixed by launch or how long a product will be reliable based on our experience with early prototypes that are still in the development phase.