VinFast, a locally produced automaker that is a part of Vingroup, the largest corporation in Vietnam, has been expanding the manufacture of automobiles swiftly.
Significant international investment has flowed into Southeast Asia in order to manufacture EVs. In Indonesia, Hyundai and SAIC have begun building automobiles. According to a Mercedes-Benz announcement, the EV EQS will go on sale in Thailand in the fourth quarter of this year.
Vietnam has witnessed exciting potential in electrifying automobile motors, in addition to increased foreign investment in its ICT supply chain from industry titans like Samsung.
VinFast was founded in 2017 with the intention of producing internal combustion engine vehicles, but the company changed its direction to EVs and said at the start of 2022 that it will only concentrate on EV development.
As the Southeast Asia Impact Alliance (SIA) accelerated the deployment of EVs, VinFast deputy CEO Nguyen Van Thanh announced the company would stop producing conventional vehicles “this month” at the Taiwan-Vietnam EV Forum held in Taipei on July 28.
More than 75,000 customers who pre-ordered the VF 8 and VF 9 from the automaker are expected to begin receiving their vehicles in the fourth quarter of this year.
According to Nguyen, VinFast has committed $2 billion in establishing production in the US with a capacity to produce 250,000 automobiles annually. This production will begin servicing the US market in 2024. In California, it intended to open 30 more showrooms.
THE SUPPLY CHAIN STRATEGY OF VINFAST VinFast’s primary production facility is located in a sizable industrial park in Hai Phong, Vietnam, where suppliers can be offered incentives to start up production. The automaker will offer lower factory and land leases so that suppliers can trade directly with one another and establish a complete automotive supply chain in the park.
The agglomeration plan aims to boost domestic EV production in Vietnam while lowering costs and delays associated with logistics.
VinFast “has had the idea to develop EVs from the start,” Nguyen continued. And as a result, both ICE automobiles and EVs can be produced on its highly automated production lines. In June, the automaker manufactured 1,700 ICE automobiles and almost 100 electric vehicles.
Additionally, the group established VinES for the production of EV batteries and VinBus for electric buses.
Advantech, a Taiwanese solution supplier, and VinBus are collaborating to install more intelligent e-buses in Vietnam. Just last month, Taiwanese solid-state battery producer ProLogium and VinFast announced an investment and partnership.
Since its founding, VinFast has shipped more than 150,000 electric scooters and 85,000 vehicles inside the country.
Taiwan is still Vietnam’s sixth-largest foreign investor, and the automaker is urging for more strategic collaborations with Taiwanese and international suppliers.
