Description
VinFast Auto Ltd. is a Vietnam-based multinational automotive company founded by Vingroup, one of the largest private conglomerates in Vietnam that was founded by Pham Nhat Vuong.
Established in 2017 in Haiphong, it is the first Vietnamese car brand to expand into global markets as well as the first to expand into producing electric vehicles (EV) such as electric cars and electric scooters.
Founded in 2017 by Vingroup, the company designed its models with the help of Pininfarina, BMW and Magna Steyr and participated in the 2018 Paris Motor Show. VinFast claims it will be the first volume automotive manufacturer in Vietnam as well as the first Vietnamese automaker to participate in a major international auto show.
VinFast broke ground in September 2017 on an 828-acre (3,350,000 m2) facility in an industrial park located on Cat Hai Island near the city of Hai Phong. The factory with paint shop, press shop, assembly shop and engine shop was built in just 21 months.
The investment is US$1.5 billion in the first phase of a program to make cars and electric motorbikes at a greenfield factory on the facilities. The company claimed that it has aggregated talent from multiple established companies and is sourcing European design, engineering, and production technology partners. The first two vehicles that were shown at Paris motorshow in the fall of 2018 are the LUX SA2.0 and the LUX A2.0, designed by Pininfarina.
In 2018 General Motors announced a partnership between Chevrolet and VinFast. VinFast will have exclusive rights to distribute Chevys in Vietnam and will take ownership of the existing General Motors (GM Korea) factory in Hanoi (VIDAMCO). That factory will then build a GM-licensed "all-new global small car" to be sold under the VinFast name.
VinFast signed two contracts with Siemens Vietnam, a unit of Siemens AG, for the supply of technology and components to manufacture electric buses in Southeast Asian countries in August 2018. On 21 March 2019, it sent the first batch of 155 VinFast Lux cars, 113 completed vehicles and 42 semi-finished cars, abroad in Europe, Asia, Australia and Africa to conduct field tests for quality testing and to qualify for a 5-star ASEAN NCAP rating.
The company would have been the title sponsor of the inaugural edition of the Formula One Vietnamese Grand Prix, which was due to take place during the 2020 season - the race was later cancelled due to COVID-19 pandemic. In Q1 2020, VinFast was the fifth best-selling car brand in Vietnam.
On 25 February 2020, it was reported that VinFast vehicles were spotted in South Africa for field tests at Kakamas in the Northern Cape Province and in Cape Town. On September 20, the company announced a loss of VND 6.6 trillion ($284 million) in the first half of the year.
In December 2020, VinFast released preliminary images of a pickup truck being developed weeks after the Lang Lang testing centre was purchased. Other vehicles in development included a three-door hatchback, two different coupe-type SUVs, a small SUV, a four-door coupe, a couple of people movers and electric scooters. According to the Intellectual Property Office of Vietnam, the patents for these vehicles are set to expire on 14 January 2024.
On July 27, 2021, parent Vingroup announced that Michael Lohscheller, the CEO of Opel, had been appointed CEO of VinFast Global. Five months later, on December 27, it was announced that Lohscheller had resigned the position.
On 30 September 2021, VinFast reported that Cerence software will be used for its electric vehicles as an intelligence voice assistant. On 25 December, it delivered the first batch of 100 VF e34 electric crossovers to Vietnamese customers at VinFast's manufacturing complex in Hai Phong. The VF e34 marks VinFast's first EV model and the first ever electric vehicle to be manufactured and sold in Vietnam.
According to Reuters, Vinfast had only made 7,400 car sales in 2022, all of which occurred in Vietnam. The company however has set itself a target of 50,000 car sales globally for 2023. They missed the goal but delivered close to 35,000 electric cars in 2023. Their Chairwoman, Le Thi Thu Thuy, projected sales of 40,000 - 50,000 vehicles in 2024.
On 6 January 2022, reports emerged that VinFast plans to build new EV plants in Germany and the United States as part of the company's plans to retire production of gas-powered vehicles and transition fully to EVs by late 2022.
Move to Singapore, efforts to go public
VinFast appeared to making its first efforts to become a public company in early 2021. Sources told Reuters that the automaker planned to merge with a special-purpose acquisition company (SPAC) in the United States. On 28 May 2021, the plan was put on hold due to SPAC scrutiny.
VinFast announced on 7 April 2022 that it planned an initial public offering (IPO) through a Singapore-based holding company. A few weeks later on 24 May 2022, Vinfast announced that it would be moving its headquarters to Singapore, with the company stating that "We feel that Singapore is a jurisdiction that will give investors more confidence." Singapore will be its legal and financial headquarters while Vietnam remains its operational headquarters. However, at the same time, the company said it would again put its plans to go public on hold.
VinFast announced in July 2023 that it was planning to merge with a SPAC operated by Black Spade Capital. The move allows the company to avoid the process of issuing an IPO. The transaction, valued at $23 billion, was completed on 14 August 2023, and the company finally went public on the US-based Nasdaq exchange on 15 August 2023.
Overseas operations
On 31 July 2018, VinFast GmbH was established in Frankfurt, Germany. The office is in charge of distributing auto parts and other related services. On the same day it was announced that VinFast will set up branch offices in Shanghai, China and Seoul, South Korea.
In February 2020, ex-Holden engineers were being recruited by VinFast in Port Melbourne, making Australia the second overseas country to have a branch after the company moved in December 2019. The branch, known as VinFast Engineering Australia, is staffed by ex-Ford, Holden and Toyota employees and opened on 12 June 2020. On 6 May 2021, the Port Melbourne office was announced to be closed due to the COVID-19 pandemic temporarily. The Lang Lang test track is not affected by the closure.
On 29 March 2022, Vinfast announced it would locate its first North American auto plant in Chatham County, North Carolina. The auto manufacturer will create 7,500 jobs. In July 2023, the company broke ground at its electric vehicle manufacturing site, located within the Triangle Innovation Point in Chatham County, North Carolina.
Export plans
In April 2019, VinFast reported that the Lux SA2.0 and Sedan Lux A2.0 were the first two models introduced to Russia at the end of 2018. According to Auto.Vesti, the models are expected to be sold throughout Russia by the end of 2020. Vuong mentioned that electric vehicles will be sold in the country after 2021.
In December 2019, it was announced that VinFast had plans to market electric vehicles to the United States by 2021. Exactly one year later, the company did not mention dates when reporting that it intended to sell its vehicles in Australia.
On 22 January 2021, VinFast unveiled three finalized designs of their electric SUV models VF31, VF32, VF33 intended for US, Canada, Germany, France and the Netherlands export markets. Of which, VF32 and VF33 are available in both gasoline and electric engine versions. These vehicles are stated to meet the NHTSA, Euro NCAP and ASEAN NCAP 5 star-ratings and feature self-driving capabilities thanks to a suite of electronic driver-assist features.
In July 2021, VinFast appointed Michael Lohscheller, who previously worked as an executive of Volkswagen America and as CEO of Opel, to lead its overseas operations. The VF31 was later rebranded as VF e34 and became available in Europe in November.
On 16 November 2022, the first VinFast showroom opened in Toronto at the Yorkdale Shopping Centre. In the same year, the company had chosen Santa Monica as one of two locations to promote its showrooms in California.
VinFast plans to expand in seven more markets in Asia, including Indonesia, where the company aims to start deliveries from 2024. In January 2024, VinFast announced plans to enter the Philippine market.
In the media
In August 2023, and in tandem with their NASDAQ listing, VinFast launched an ad campaign for their VF 8 and US debut featuring Joey Lawrence, reviving his catchphrase, "Whoa!", from the hit TV series Blossom on NBC that amassed a million views on YouTube in under a week, produced by production company Anaheim Studios.
Four million views and four months later, VinFast released a second installment of the Whoa commercial, in which Joey Lawrence reprised his starring role, in December of the same year.
