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|VinFast’s meteoric rise proves Vietnamese companies are ready to take on the world, Photo: Hoang Ha|
The debut of VinFast vehicles organised at Thong Nhat Park in Hanoi last week has attracted thousands of Vietnamese people, many of whom decided to buy a Klara e-motorbike or ordered a VinFast car.
Most customers were impressed by the price of these vehicles. The hatchback Fadil will be put on sale for VND423 million ($18,391), while the Sedan Lux A2.0 will start at VND1.366 billion ($59,391) and the SUV Lux SA2.0 at VND1.818 billion ($79,043).
However, along with the “Three No” policy – No depreciation charge, No financial charge, and No profit – these VinFast vehicles will cost only VND336 million ($14,608), VND800 million ($34,782), and VND1.136 billion ($49,391), respectively.
With this affordable price, VinFast cars are equipped with strong engines and a modern kit. “Their configuration and specifications are all higher than my expectations. For example, the airmatic suspension system has not been seen in cars under VND1 billion ($43,478). VinFast has been very careful to equip its vehicles. I think with the affordable price and what it buys, VinFast stands a good chance of stirring up the market,” said automobile expert Nguyen Thanh Hai.
In order to realise the dream of creating Vietnam’s very own automobile brand, VinFast has created its own value chain and quickly enlisted brainpower from the world’s leading brands like Siemens, Bosch, Magna Steyr, AVL, and Pininfarina to help VinFast stand fast against the biggest names of the global automotive industry. This also affirms the strength of Vingroup.
“It is not a challenge to create a Vietnamese automobile brand, because the country has a well-positioned business that is able to create and lead an international value chain by co-operating with the world’s leading brands,” confirmed economist Vu Dinh Anh.
VinFast has breathed life into Vietnam’s dream of a bright future in the automobile industry, showing that the country can in fact reach farther than simple assembly, if only its corporations are more proactive and dare to dream bigger.
“VinFast has manufactured a car successfully and will go ahead to produce each part and detail with high technological skill and added value,” said Vo Quang Hue, deputy CEO of Vingroup, managing the VinFast project.
Thereby, VinFast has recognised the importance of a supporting industry network to reach its long-term goal of 60 per cent localisation ratio in automobile and 100 per cent in e-bike manufacturing.
However, according to automobile expert Vu Tan Cong, the localisation of automobiles in general and passenger cars in particular is a big job not only for manufacturers but also for the Vietnamese government. An original equipment manufacturer (OEM) needs about 150-200 Tier 1 part-component suppliers. In order to increase the localisation ratio for passenger vehicles, VinFast and its Tier 1 suppliers should double down on branding, marketing, and sales in domestic and overseas markets to attract world-class Tier 1 suppliers to Vietnam. “Also, to increase the localisation ratio, the Vietnamese government should promote the domestic automobile market, incentivise the automobile supporting industries, and support domestic OEMs to use locally-manufactured parts and components,” Cong said.