(Hanoi, 13th) Vietnam’s richest man, Pham Nhat Vuong, has poured $14 billion into his electric vehicle brand VinFast, which, after setbacks in the high-end European and US markets, is now shifting its attention to Asian markets such as India, Indonesia, and the Philippines. Analysts describe this as a race against time.
Pham Nhat Vuong founded VinFast in 2017. Dubbed the “Vietnamese Tesla,” the company aggressively expanded into North America and Europe. However, early models received poor reviews and faced software recall issues, hampering expansion in Western markets.
Last year, VinFast spent $1.57 for every dollar of sales, resulting in a full-year loss of $3.2 billion. Of the 97,400 vehicles delivered globally, only about 10% were exported, with the remaining 90% sold in the Vietnamese domestic market. Due to sluggish overseas sales, the company has postponed construction of its planned electric vehicle plant in North Carolina, USA, to 2028.
Despite ongoing losses, Pham Nhat Vuong stated he will support VinFast “until the funds run out,” and is adjusting strategy to focus on Asia. He noted that while these new target markets are relatively late to adopt EVs, their growth potential is enormous.
Tule, founder of Detroit-based “China Auto Insights,” believes that Pham Nhat Vuong must quickly build a foothold in Asia or risk being unable to compete with Chinese and other international EV makers—especially if Chinese companies bring their price war to Southeast Asia, which could reshape the market landscape.
VinFast has already opened its first overseas assembly plant this month at Tuticorin Port, India, with annual capacity of 150,000 units to supply South Asia, the Middle East, and Africa. In June, the company began production at its second assembly plant in Vietnam, with a capacity of 200,000 units per year; a new factory in West Java, Indonesia, is slated to start production next year, targeting 50,000 units annually.
Thanachai, managing director of Thailand’s Proliance, noted that new auto brands need time and massive investment to build brand recognition, customer trust, and infrastructure for service and charging. Multiple analysts recommend VinFast consolidate its position in Vietnam before expanding further overseas.
Pham Nhat Vuong remains confident, insisting VinFast will achieve break-even by the end of next year. Gitman, managing partner at automotive software consulting firm SanBoca Insights, is also optimistic about VinFast’s prospects, stating: “Even in Florida, I have seen a few VinFast cars on the road.”
Last year, VinFast spent $1.57 for every dollar of sales, resulting in a full-year loss of $3.2 billion. Of the 97,400 vehicles delivered globally, only about 10% were exported, with the remaining 90% sold in the Vietnamese domestic market. Due to sluggish overseas sales, the company has postponed construction of its planned electric vehicle plant in North Carolina, USA, to 2028.
Despite ongoing losses, Pham Nhat Vuong stated he will support VinFast “until the funds run out,” and is adjusting strategy to focus on Asia. He noted that while these new target markets are relatively late to adopt EVs, their growth potential is enormous.
Tule, founder of Detroit-based “China Auto Insights,” believes that Pham Nhat Vuong must quickly build a foothold in Asia or risk being unable to compete with Chinese and other international EV makers—especially if Chinese companies bring their price war to Southeast Asia, which could reshape the market landscape.
VinFast has already opened its first overseas assembly plant this month at Tuticorin Port, India, with annual capacity of 150,000 units to supply South Asia, the Middle East, and Africa. In June, the company began production at its second assembly plant in Vietnam, with a capacity of 200,000 units per year; a new factory in West Java, Indonesia, is slated to start production next year, targeting 50,000 units annually.
Thanachai, managing director of Thailand’s Proliance, noted that new auto brands need time and massive investment to build brand recognition, customer trust, and infrastructure for service and charging. Multiple analysts recommend VinFast consolidate its position in Vietnam before expanding further overseas.
Pham Nhat Vuong remains confident, insisting VinFast will achieve break-even by the end of next year. Gitman, managing partner at automotive software consulting firm SanBoca Insights, is also optimistic about VinFast’s prospects, stating: “Even in Florida, I have seen a few VinFast cars on the road.”