While the EV industry faces some headwinds, many experts believe it is entering a period of sustainable, albeit slower, growth. VinFast’s long-term commitment to pure electric vehicles and the support of its parent company, Vingroup, give it a unique advantage. The automaker’s recent success in capturing the top spot in the domestic market in September further solidifies its appeal to emerging markets and reinforces its position as a global green warrior.
In a Bloomberg interview, Pham Nhat Vuong, CEO of VinFast and Chairman of Vietnam’s Vingroup, offered a surprising response when asked about his commitment to the electric vehicle maker. “Until I run out of money,” he declared from Vingroup’s headquarters.
Vingroup is a major player in Vietnam’s economy, contributing an estimated 1.6 percent of the country’s 2023 GDP. Vingroup operates across three core sectors: technology & industry, trade & services, and social enterprise.
As the electric vehicle industry experiences a slowdown, industry insiders attribute the lull to rapid growth in recent years. They maintain that the long-term trend of electrification remains irreversible.
Vuong’s long-term perspective contrasts with the short-term focus often seen in business. His unwavering support for VinFast positions the company to weather current industry challenges and emerge as a significant player in the global electric vehicle market.
EV Industry: Navigating a Path Toward Sustainable Growth
The electric vehicle industry has witnessed impressive year-over-year growth rates, including a notable doubling in market share from 2020 to 2021. However, it’s important to recognize that such extraordinary growth is not sustainable over the long term. As the EV market expands, it’s reasonable to expect a more gradual pace of growth. This is a common trend as any rapidly growing product or market matures.
VinFast, the Vietnamese Nasdaq-listed electric vehicle maker, has the potential for long-term growth in the industry. The company’s multi-product, multi-market strategy positions it to weather global economic storms and capitalize on favorable trade relations with strategic partners.
In a recent interview with Mekong ASEAN, Indonesian Ambassador to Vietnam Denny Abdi highlighted the role of technology in bilateral ties, citing VinFast as a prime example of cooperation. He emphasized the shared goal of both nations to achieve high-income status by 2045, which he said requires producing high-quality goods for global markets to boost per capita income.
“If VinFast’s Indonesian venture succeeds, it will inspire countless Indonesian businesses and startups,” Ambassador Abdi said. “It will motivate them to aim for VinFast’s level of success as a high-tech manufacturing leader.”
“In the past, we relied on developed nations for high-tech products,” Ambassador Abdi said. “Now, thanks to our Vietnamese friends, we’re seeing innovation emerge from our own region. This is truly inspiring.”
The ambassador envisions a future where Indonesia could transition to electric vehicles, a cleaner alternative to fossil fuel-powered cars. “VinFast’s success could pave the way for a greener Indonesia,” he said.
In another testament to the burgeoning economic relationship between Vietnam and strategic partners, Vietnamese Prime Minister Pham Minh Chinh witnessed the signing of Memoranda of Understanding (MOUs) between Vingroup, VinFast, and prominent Middle Eastern companies during an official visit to the UAE.
In the presence of Vietnamese Prime Minister at the Vietnam-UAE Business Forum, Vingroup signed MOUs with three partners: AD Ports Group, NMDC, and Benya Technologies, while VinFast signed an MOU with Emirates Driving Company (EDC).
These MOUs encompass strategic areas such as maritime development and shipyard construction, sustainable coastal land utilization, digital transformation, and collaboration in electric vehicles and green transportation.
Having achieved significant inroads in mature markets such as North America and Europe, VinFast has now set its sights on high-potential markets, including Southeast Asia and the Middle East. Recently, VinFast held an official brand launch event in the Middle East, unveiling a diverse portfolio of intelligent, eco-friendly mobility solutions. This event signifies a crucial milestone in VinFast’s global expansion strategy and underscores its dedication to providing sustainable and green transportation options in the region.
Coinciding with the brand launch, VinFast, in collaboration with its partner Al Tayer Motors, officially opened its first dealership in the United Arab Emirates (UAE), strategically located in downtown Dubai. Spanning over 1,000 square meters, the dealership boasts a contemporary and opulent design, seamlessly integrating a service workshop. This state-of-the-art facility empowers customers to directly engage with VinFast’s intelligent electric vehicles, including the VF 6, VF 7, VF 8, and VF 9 models.
VinFast Emerges as a Global Green Warrior
As the global economy faces uncertainty, VinFast has positioned itself as a leader in electric vehicles, offering a diverse range of products to suit various needs and budgets. With eight electric car models, one electric bus, nine electric motorbikes, and one electric bicycle, the Vietnamese automaker is catering to a wide spectrum of consumers.
VinFast’s strategy of offering a diverse product lineup has proven successful in its domestic market. In September, the company delivered over 9,300 cars to Vietnamese customers, a 50% increase over the second-place automaker. This achievement makes VinFast the top-selling car brand in Vietnam for the month, a significant milestone for the nation’s automotive industry.
Vietnam has become one of the few countries globally where electric vehicles are outselling gasoline-powered cars. VinFast’s dominance in the market highlights the growing consumer preference for sustainable transportation options. For the first time, a Vietnamese electric car brand has surpassed both domestic and international competitors to claim the top spot. This remarkable achievement comes just two years after VinFast’s full transition to electric vehicles.
Years ago, VinFast defied expectations by transforming a barren swampland into a cutting-edge automotive manufacturing facility in record time. Leveraging advanced technologies such as artificial intelligence and robotics, this high-tech facility optimizes production processes, reduces energy consumption, and ensures superior product quality.
As a Nasdaq-listed EV pioneer, VinFast is strengthening its international footprint. After solidifying its position in Asia and North America, the company is now turning its attention to the Middle East. Through strategic partnerships and a focus on cutting-edge technology, VinFast aims to drive the adoption of electric vehicles in this dynamic region.
To accelerate its presence in the Middle East, VinFast has partnered with three leading automotive dealers: Al Tayer Motors (UAE), Al Mana Holdings (Qatar), and Bahwan Automobiles & Trading (Oman). These strategic alliances will enable VinFast to introduce its innovative EVs to Middle Eastern consumers and contribute to a greener future.
By leveraging advanced technology and sustainable practices, VinFast is dedicated to shaping the future of sustainable transportation and demonstrating Vietnam’s capacity for innovation and execution on the global stage. As the electric vehicle industry continues to mature, VinFast’s long-term vision and unwavering commitment to green transformation are driving its global expansion./.