With the aim of introducing its electric vehicles to American consumers,VinFast plans to leverage its unique selling points, competitive advantages, andsuccessful track record in Vietnam
Company Description
Promoters, shareholders, and board
VinFast is owned by Vingroup, one of the largest conglomerates in Vietnam. Vingroup was founded by Pham Nhat Vuong, a Vietnamese billionaire He is considered the main promoter and driving force behind VinFast. ii Shareholders
As of September 30, 2022, VinFast is jointly held by three shareholders, namely, Vingroup (51.52%), VIG (33.48%), and Asian Star Trading & Investment (15%). iii Board of Management
Products and services
The formation and development of VinFast
VinFast automobile and motorbike production complex officially started construction on September 2, 2017, in Cat Hai district, Hai Phong City The factory has a high operating capacity with an output of 500,000 vehicles/year, with a production speed of 38 vehicles/hour
The official presentation of Lux vehicles at the 2018 Paris Motor Show was recognized by AUTOBEST as "A Star is Born" By October 2018, just one year after the ground-breaking ceremony of the factory complex, VinFast's Lux A2.0 sedan and Lux SA2.0 SUV were officially launched impressively at the Paris Motor Show
2019Three automobile models, the Lux A2.0 sedan, Lux SA2.0 SUV, and city carFadil, as well as three e-scooters, Ludo, Impes, and Klara, have been officially launched in the Vietnamese market ASEAN NCAP awarded the VinFast Lux A2.0 and VinFast Lux SA2.0 a 5-star rating, recognizing outstanding performers and contributions to road safety, raising awareness, and encouraging car manufacturers to fulfill greater safety criteria.
In Vietnam, VinFast's new automobiles have become the best-sellers in all three segments Especially, VinFast Fadil is one of the best sellers of the A – segment with nearly 2000 to 3000 cars each month Besides, VinFast Lux A and Lux SA also belong to the top 10 best-selling brands in the Vietnam market.
Launch two new e-scooters: The Theon and Feliz, as well as Vietnam’s very first e-Bus.
Launch of three brand new smart EVs: the VF e34, a compact SUV for the Vietnamese market, and the larger, all-electric premium SUVs: VF 8 and VF 9 for the global market The VF e34 in the C - SUV segment was launched on March 24, 2021, marking Vietnam's first step forward in the global electric car
On 5 January, Las Vegas — VinFast unveiled a new development strategy and showcased its comprehensive electric car lineup encompassing five segments during the VinFast Global EV Day at the Consumer Electronics Show (CES 2022).
VinFast becomes one of the first automotive firms in the world to go electric, reaffirming its position as a worldwide pioneer in the global EV revolution 2022
Pre-orders for the all-electric VF 8 and VF 9 are open Launch of VinFast NFTs and privilege benefits In the US, customers who pre-order $200 will receive an e-voucher worth $3,000 for the VF e35 and $5,000 for the VF e36 With the applied art blockchain, customers will receive a VinFirst NFT card certificate (an irreplaceable token on the blockchain) - proving to be the first stylish customer in the NFT format.
Launch of a global showroom in the US, Canada, and Europe.
On June 14, during the 35th International Electric Vehicle Symposium and Exhibition (EVS35) in Norway, automaker VinFast revealed plans to build more than 50 outlets across Europe As a result, at least 25 VinFast outlets will be located in Germany, 20 in France, and five in the Netherlands.
Benefits and features o Design Collaboration: VinFast collaborated with renowned design firms like Pininfarina and ItalDesign to create stylish and distinctive vehicle designs o Advanced Technology: VinFast incorporates advanced automotive technologies into its vehicles This includes features like smart connectivity, touchscreen infotainment systems, advanced driver-assistance systems (ADAS), and modern safety features, enhancing the overall driving experience. o Localized Manufacturing: VinFast is committed to developing Vietnam's automotive industry by focusing on localized manufacturing The company aims to source a significant portion of the components and parts locally, thereby supporting the growth of domestic suppliers and contributing to the country's economy. o High-Quality Production: VinFast operates a state-of-the-art manufacturing facility in Hai Phong, Vietnam The facility utilizes advanced production techniques and adheres to strict quality control measures to ensure high-quality manufacturing processes and finished vehicles. o Electric and Hybrid Options: VinFast has expanded its vehicle offerings to include electric and hybrid models This demonstrates the company's commitment to sustainability and alignment with global trends towards eco- friendly transportation. o Customer-Centric Approach: VinFast emphasizes a customer-centric approach by focusing on delivering vehicles that meet the needs and preferences of their target markets. o International Expansion: VinFast aims to establish a presence beyond the domestic market The company has plans for international expansion and aims to export its vehicles to various countries, contributing to the growth of the
Vietnamese automotive industry and promoting the "Made in Vietnam" brand globally.
VinFast is a vehicle manufacturing brand implemented by the VinGroup corporation Its slogan is highly regarded and directly appeals to customers' emotions: "Vinfast mãnh liệt tinh thần Việt Nam - VinFast embodies the spirit of Vietnam."
The most unique aspect of VinFast is being the first Vietnamese vehicle manufacturing brand established With this unique selling point, VinFast targets Vietnamese customers who have a preference for Vietnamese products.
Advantages to customers o Unique and distinctive vehicle designs. o Integration of advanced technology and features. o Competitive pricing compared to imported vehicles o Environmental sustainability through electric and hybrid vehicle options
Disadvantages/weak points o Limited brand recognition outside of Vietnam. o Limited historical track record in the automotive industry.
Future Development o Constantly improve and upgrade product quality
Vingroup has been changing the way people live in Vietnam for thirty years, and now VinFast bring that mission to the world stage and VinFast’s mission is simply to create a sustainable future for everyone.
SWOT analysis
The leadership team is comprised of capable individuals: o Former Vice Chairman James B DeLuca of the largest automotive group in the United States leads VinFast. o Mr Vo Quang Hue assumes the position of Deputy General Director of the automotive sector, overseeing VinFast projects With over 40 years of experience in the manufacturing industry, Mr Hue is expected to pave the way for the VinFast brand with solid initial steps. o Ms Le Thi Thu Thuy (former Vice Chairman and CEO of VIC) previously worked at Lehman Brothers, serving as Vice Chairman of Lehman Brothers in Japan, Thailand, and Singapore
Financial resources: Vingroup itself is a financially strong corporation, and as a subsidiary of this group, VinFast receives significant financial backing
Positive brand image: In this aspect, Vingroup has created a positive image through its achievements in tourism and real estate, which is also inherited byVinFast
High conformity level - Quality management: Compliance with strict quality, safety, and environmental standards is mandatory for entering many markets. With new technology investments and a forward-looking vision, Vin has an advantage over existing companies by not having to bear the burden of the current system
Dense dealer network: VinFast quickly acquired the entire dealership system of
GM Vietnam before launching its new models This system consists of 22 dealerships, more than 1.5 times the number of Mercedes-Benz Vietnam.
Weaknesses o Not a well-known brand in the market:
This is the first factor that consumers consider when choosing a car If businesspeople want to find a car that enhances luxury and demonstrates status, VinFast is not the preferred choice o Unsatisfactory warranty, maintenance, and service costs:
Although the dealership network is expanding and components are being produced at affordable prices, it is evident that as a new entrant to the market, VinFast's number of dealerships and the availability of repair components are weaker compared to the earlier-established brands, especially Toyota o Marketing and PR capabilities for VinFast products are not an advantage:
Car buyers usually choose models that suit their specific personal styles In particular, the suitability of a brand to personal style is also determined by the marketing capabilities of the company However, marketing is not a strong suit of Vingroup.
Opportunities o Opportunity to create products that cater to the majority through leveraging technology from partners:
VinFast has taken initial steps by collaborating with strategic partners such as design firms from Italy and the BMW Group This is also a trend that many car manufacturers around the world are adopting, where we can leverage and utilize technology from partners to independently produce and create products that cater to the majority. o High support from Vietnamese users in the context of the fastest- growing domestic consumption in Southeast Asia:
It can be said that VinFast is the first company with the ambition to produce cars and has the highest potential to turn that ambition into reality After years of longing by the Vietnamese people to have a domestically produced car, from the efforts of the Vinaxuki brand to the famous brands assembled in Vietnam before 1975 like La Dalat, this shows that VinFast holds the advantage as the
"leader" in the Vietnamese market.
At the same time, according to statistics, car consumption in Vietnam is growing at the fastest rate in the ASEAN region And because it is the first
"made in Vietnam" car, it also piques the curiosity of young people who want to own or experience how it feels to drive such a car Not to mention, the import taxes for cars in Vietnam are relatively high, so when a domestic car line appears, it will receive the response of the majority of the people. o There is great potential when meeting the psychological needs of Vietnamese people who want to own a car as the infrastructure is being improved:
Furthermore, the development of urban projects outside the city, accompanied by the improvement of infrastructure, also affects the trend of consumer desire to use cars Currently, the trend of traditional housing has shifted to high-end apartments with full amenities They have spacious parking lots with reasonable parking fees These factors together provide us with a more potential and developed view of the trend of wanting to own a car.
Threats o Brand barriers: For new car models, brand value is an important criterion that influences customer decisions because they will have psychological hesitation between choosing VinFast products or other brands that have established themselves in the market for decades. o Limitations in the Vietnamese automotive supporting industry:
Despite the attention and support from the government, the domestic supporting industry has not truly developed, and the localization rate in the industry remains low The industry supporting vehicle manufacturing and assembly in Vietnam can only produce a limited number of component groups and spare parts. o Market expansion pressure:
The domestic market is not large enough, and VinFast needs to increase production to gain advantages in terms of scale Therefore, VinFast will have to solve this problem by exporting to other markets.
Market Analysis
Target Market
In 2021, the total population of the USA was 331,893 million (World Bank,
2021) The total population had been growing gradually, and while the growth rate of the population showed signs of shutting down, it indicated that the target market was increasing.
Source: WorldBank Figure 1 Population, total in the USA from 2010 to 2021 The labor force experienced steady growth during the period from 2010 to
2022, implying that the target market was expanding too.
Source: WorldBank Figure 2 Labor force, total in the USA from 2010 to 2022
Regards as the car market, the U.S is one of the largest car markets in the world Almost all global brands are present in this developed economy and mature market.
Source: Motor1.numbers Table 1 Top 10 largest new car market in 2022
As of 2022, over 76 percent of the U.S population reported having access to their own car, with an additional 19 percent having access to a company or family car The high motor vehicle demand in the country fuels an active automotive industry With over 1.5 trillion U.S dollars in revenue from road vehicle and parts retail trade, the sector has swiftly recovered from the COVID-
The U.S auto industry sold nearly 2.86 million cars in 2022 That year, total car and light truck sales were approximately 13.75 million in the United States. (Statista, 2023)
3.1.1 Market segment by body type
According to information provided by JATO Dynamics, SUVs and pickups recorded a new record market share in the first four months of 2022, combining for 72.9 percent of total passenger car sales between January and April By the numbers, it is 3.32 million units out of a total of 4.56 million Of the two segments, SUVs are the dominant force by a wide margin, accounting for 53.5 percent of the share to 19.4 percent for trucks In addition to their dominant position, SUVs and pickups have been market share leaders over the past four years (Munoz, 2022) Moreover, the market share for that particular segment hasn't stopped growing (Munoz, 2022) The market's largest segment is SUVs with a projected market volume of US$301.60bn in 2023 (Statista, 2023)
Characteristics SUV Pickup Sedan Hatchback
- Use in all road conditions
- Extremely convenient for city driving
Reason for not using - High price
- Not convenient for city driving
Source: Motor1.com, Gomechanic, Cartrade Table 2 Characteristics of market segment by body type
3.1.2 Market segment by fuel type
Characteristics Gasoline/diesel (ICE) Electric (Hybrid, Plug-in hybrid electric, Battery electric)
62% of total US vehicle sales
36% of total US vehicle sales
Reason for using High-speed
More powerful Driving range Numerous public vehicle charging infrastructure
Better driving experience Lower fuel costs Concern about climate change Less maintenance
Reason for not using Higher fuel costs
Concern about climate change More maintenance
Cost/price premium Driving range Time required to charge
Lack of public electric vehicle charging infrastructureLack of a charger at home
Market segment trend Declining Growing
Source: Americanhistory, Deloitte Table 3 Characteristics of market segment by fuel type
Revenue in the Electric Vehicles market is projected to reach US$70.13bn in
2023 Revenue is expected to show an annual growth rate (CAGR 2023-2028) of 18.17%, resulting in a projected market volume of US$161.60bn by 2028. Electric Vehicles market unit sales are expected to reach 2.46m vehicles in
2028 The volume-weighted average price of Electric Vehicles market in 2023 is expected to amount to US$64.96k (Statista, 2023)
Source: Statisata Figure 3 Electric vehicle sales in the US from 2016 to 2028
Source: Macrotrends Figure 4 U.S population’s annual growth rate from 1950 to 2023
Population growth is generally projected to slow between 2023 and 2053, averaging 0.3 percent per year over that period That growth will be increasingly driven by immigration as fertility rates remain below the rate that would be required for a generation to exactly replace itself in the absence of immigration (Macrotrends, 2023)
As regards the worldwide market, revenue in the Electric Vehicles market is projected to reach US$561.30bn in 2023 Revenue is expected to show an annual growth rate (CAGR 2023-2028) of 10.07%, resulting in a projected market volume of US$906.70bn by 2028 Electric Vehicles market unit sales are expected to reach 17.07m vehicles in 2028 The volume weighted average price of the Electric Vehicles market in 2023 is expected to amount to US$52.78k. From an international perspective it is shown that the most revenue will be generated in China (US$292,100.00m in 2023).
Regardless of the tremendous growth in the Electric Vehicles market, it is only limited to a part of the world As the race to full electrification continues, China,Europe, and the U.S account for about 95% of the global electric vehicle sales,whereas the rest of the world seems to struggle with catching up In addition to government subsidies just getting introduced or still being nonexistent, the top reasons cited for the slow progress experienced in those parts of the world include the lack of public charging infrastructure and the premium prices of electric vehicles in these regions (Statista, 2023)
Source: Statista Figure 5 Electric vehicle sales worldwide during the period from 2016 to
A majority of U.S customers who placed reservations for VinFast EVs and participated in the F&S Customer Survey are switching from ICE vehicles to a VinFast EV Over 69% of F&S Customer Survey respondents currently owning at least one car and over 89% of respondents own ICE vehicles Given their strategic focus on EVs, Vinfast have tailored their business model to target segments that Vinfast believe will achieve the highest growth and profitability across the EV spectrum (Vinfast, 2022)
In addition, the U.S Government also sets an aggressive target of 50% electrification by 2030 At the state level, there are also many policies promoting EV adoption (Vinfast, 2022)
In March 2023, Vietnamese electric vehicle maker VinFast delivered its first 45 cars to customers in California on Wednesday, its first sales outside Vietnam. Vehicle subscription service Autonomy has a deal to purchase 2,500 vehicles from VinFast, the companies said last year Autonomy did not respond to a request for comment on when it would take delivery (Reuters, 2023)
Vingroup aims to reach annual electric vehicle sales of 160,000 to 180,000 in the U.S in the period of 5 years the equivalent of 1% of all automobiles,electric or otherwise, sold in the country.
Source: Forbes Figure 6 U.S electric vehicle sales share (based on unit sales between January & June 2017) 3.1 Market Trends
Recently, the market for electric vehicles (EVs) has witnessed a rapid growth and is anticipated to continue to accelerate in the next decade According to Global EV outlook, EV sales in the year 2022 exceeded 10 million, with 14% of all new cars sold being electric That resulted in over 26 million electric cars roaming on global roads, representing a 60% uptake from 2021 Moreover, electric cars' share of the overall car market has risen from around 4% in 2020 to 14% in 2022 and is expected to increase further to 18% this year (International Engine Agency, 2022).
Sales of electric cars are projected to remain robust through 2023, with more than 2.3 million units sold in the first quarter, representing a 25% increase from the same period in the previous year The International Engine Agency (IEA) anticipates that there will be 14 million electric cars sold by the end of 2023, which is a 35% increase year-on-year, with new purchases accelerating in the second half of this year As a result, electric cars could make up 18% of overall car sales for the entire year The implementation of national policies and incentives is expected to boost sales, while the return of high oil prices seen in the past year may motivate prospective buyers further.
Source: IEA analysis based on EV Volumes Figure 7 Electric car sales, 2010-2023
The underlying reason for the significantly increasing demands for electric cars and other electric vehicles is people’s higher awareness of environmental concerns Besides, the incredible surge in oil and petroleum prices due to the Ukraine - Russia war was also attributed to the changing behaviors of consumers worldwide.
In the United States, electric -car registrations also experienced a soaring increase in 2022 Electric car sales in the United States increased 55% in 2022, reaching a sales share of 8% In the first quarter of 2023, electric car sales in the
US were estimated to reach over 320,000, making a 60% increase compared to the same period in 2022 However, electric vehicles in the American market still account for a small proportion compared to China and the EU.
Source: IEA Figure 8 Electric car registrations and sales share in China, United States and Europe, 2018-2022 3.4.2 Trends in SUV
In recent years, SUVs have surpassed the sedans to become the most popular light-duty vehicles In 2022, the majority of vehicles sold worldwide were compact SUVs, with a total of 15.6 million units It is estimated that the SUV market will grow from USD 885.8 billion in 2022 to USD 1,221.7 billion in
2027, at a CAGR of 6.6% Strong demand for SUVs is noticed in such countries as the US, Canada, China, Japan and South Korea, accounting for more than90% of world total production.
Benefits to clients
Brand identity refers to the visual representations of a brand, including elements such as color, logo, and design, that distinguish it from other brands in the perception of consumers For VinFast, the idea for the name stands for “Việt Nam – Phong cách – An toàn – Sáng tạo – Tiên phong” in Vietnamese with the desire to go for huge accomplishments and soon becoming the pioneer of the automobile manufacturing industry in Vietnam
The brand’s logo is designed with 2 Vs stacked in 3-D effect, which shows the true linkage and the opening of a new development era for the automobile industry It can be understood in multiple criteria like Vietnam, Vingroup and Victory VinFast's logo uses a simple but elegant silver tone, showing the class of a stylish and fashionable car company When combined on black, red or dark blue car colors, this logo will be extremely prominent and shining.
The exploration, dynamism, open-mindedness and connection themes that run throughout all visual components of VinFast are constant This is directly related to VinFast’s mission statement: “To create a more sustainable future”.
VinFast, a premium car company from Vietnam that has long held the top spot and served as an icon for car brands, not only asserting its dominance in Vietnam but also in its path to make a name for itself in the US market VinFast plans to open at least 25 VinFast stores in Germany, 20 in France and 5 in the Netherlands In general, people between the ages of 20 and 45 are VinFast’s target market so it keeps positioning its products as cars with technical design, easy to control to serve best quality for the customer To interact with young customers and strengthen the distinctive positioning of the VinFast branding, new digital connections are being built in addition to traditional marketing channels like TV ads and events
VinFast has used a series of well-known global brands to create value for its brand Initially, VinFast hired two famous Italian designers, ItalDesign andPininfarina, but then VinFast gave Vietnamese people the opportunity to vote for designs through a poll This is a quite right strategy of 20 VinFast, surely
Marketing/Sales Strategy
Brand management
Brand identity refers to the visual representations of a brand, including elements such as color, logo, and design, that distinguish it from other brands in the perception of consumers For VinFast, the idea for the name stands for “Việt Nam – Phong cách – An toàn – Sáng tạo – Tiên phong” in Vietnamese with the desire to go for huge accomplishments and soon becoming the pioneer of the automobile manufacturing industry in Vietnam
The brand’s logo is designed with 2 Vs stacked in 3-D effect, which shows the true linkage and the opening of a new development era for the automobile industry It can be understood in multiple criteria like Vietnam, Vingroup and Victory VinFast's logo uses a simple but elegant silver tone, showing the class of a stylish and fashionable car company When combined on black, red or dark blue car colors, this logo will be extremely prominent and shining.
The exploration, dynamism, open-mindedness and connection themes that run throughout all visual components of VinFast are constant This is directly related to VinFast’s mission statement: “To create a more sustainable future”.
VinFast, a premium car company from Vietnam that has long held the top spot and served as an icon for car brands, not only asserting its dominance in Vietnam but also in its path to make a name for itself in the US market VinFast plans to open at least 25 VinFast stores in Germany, 20 in France and 5 in the Netherlands In general, people between the ages of 20 and 45 are VinFast’s target market so it keeps positioning its products as cars with technical design, easy to control to serve best quality for the customer To interact with young customers and strengthen the distinctive positioning of the VinFast branding, new digital connections are being built in addition to traditional marketing channels like TV ads and events
VinFast has used a series of well-known global brands to create value for its brand Initially, VinFast hired two famous Italian designers, ItalDesign andPininfarina, but then VinFast gave Vietnamese people the opportunity to vote for designs through a poll This is a quite right strategy of 20 VinFast, surely consumers will be open to the designs they choose VinFast has cooperated with globally renowned companies in the automotive quality platform such as Magna Steyr and Bosch, AVL, ZF, GROB, Thyssenkrupp, AVLand MAG, etc. That world not only brings an excellent quality, but also contributes to building a quality image in the hearts of the public Next, VinFast is implementing strong communication strategies, affirming itself as a leading and pioneering manufacturer in the domestic automobile manufacturing industry, not a "playing rich" or a "snatching” one In addition, VinFast has a huge advantage that isVingroup, a huge backing, both in terms of finance and technology as well as in terms of name and trust level of customers and the public with Vingroup is extremely large.
Marketing strategy
VinFast's main target in the US market is to boost the sales of its range of electric SUVs with various sizes and designs spanning from B to E At present, the highest selling models in the US include VF6,7,8,and 9 After announcing at
LA Auto Show in 2021, VinFast has launched the VF8 and 9 model in the US market a year later, targeting the large SUV segments of D and E VinFast has done incredible things to ensure a satisfying and secure experience for users during every ride by integrating advanced technologies like VinFast's virtual assistant and the VF8.9 advanced driver assistance system (ADAS) into its spacious interiors, as well as employing an impressive engine and Smart Service utility with cutting-edge features.
Regarding the VF9 model, it has a strong design, high aerodynamics, layout of air intakes at the top and hood It also adds a sports spoiler at the rear to limit the impact of the wind, maintain traction and help the vehicle to move stably at high speed range In addition, the VF9 model is also equipped with a large- capacity battery system and a powerful powertrain with a maximum capacity of up to 300kW and a maximum travel distance of 438 km (Eco version) and 423 km (Plus version).
As for the VF8, it boasts an ultra-modern and luxurious design that exudes a futuristic vibe through its sleek and dynamic curves This model is available in two versions: Eco and Plus, which are similar in terms of size and safety technology, but differ in battery capacity, engine, and additional car amenities.The maximum power output of the Eco version is 260kW, while the Plus version delivers up to 300kW In terms of maximum travel distance, the VF8 Eco version covers a distance of 420 km, whereas the VF8 Plus version covers a distance of 400km Overall, this automobile category has immense potential for growth in the US market as there are relatively few electric vehicles manufactured with such ample proportions.
Following the triumph of VF8 and VF9, VinFast introduced two additional models in the same year: VF6 and VF7 These SUVs cater to the more common
B and C segments and feature distinctive, slightly futuristic color schemes and unique designs The interiors of both models are minimal, with a spacious central touch screen situated directly in front of the driver A three-spoke steering wheel with integrated buttons facilitates flexible and convenient control of the driver.
Continuously launching new models for different segments is one of the important strategies to help VinFast quickly expand the market segment to all audiences in every segment This helps to increase the brand's identity as well as expand and diversify the customer base, thereby boosting the competitive advantage over major competitors in the US market.
Moreover, by adopting a battery rental system instead of selling batteries outright, VinFast can effectively regulate and manage the safe handling of batteries once their usable lifespan has expired, in harmony with the relevant regulations This strategy not only mitigates potential risks associated with consumer use but also curtails the potential hazards posed to the environment. Besides, one of VinFast's unique selling points is a 10-year or 200,000km warranty service Providing many customer care services and high-end maintenance helps VinFast endear itself to its customers when compared to competitors such as Tesla model 3 with only 8 years or 120,000km warranty
In addition to battery packs, VinFast needs to continue increasing autonomy in key components such as engines, transmissions, and steering systems.Enhancing self-sufficiency in production will significantly reduce production costs for VinFast, allowing them to offer customers more reasonable prices.Moreover, it will provide VinFast with greater flexibility in product improvement, leading to the creation of a more unique product that embodies the distinct "VinFast - A Vietnamese car brand" identity, rather than relying on a combination of components from various other manufacturers.
VinFast needs to open more service centers in some key locations in the US where consumers consume electric cars the most, such as: California, Washington, Oregon, Vermont, and Hawaii, before expanding to the whole country in order to provide customers with a better experience in a quick and convenient way.
Moreover, VinFast also can consider offering a diverse lease program for each production line which gives less opportunities to experience its products at lower hourly costs This tactic improves VinFast's ability to interact directly with potential customers and gives the company a chance to persuade also convert them into current customers.
Although the brand positioning is towards a high-priced, high-end luxury SUV product line for the middle and upper classes in the US, VinFast has used a competitive price strategy by lowering the price than competitors in the same segment as Tesla but with almost the same quality To explain for the reasons why VinFast chooses to have a lower price than its opponents:
The battery packs are made at VinFast’s facility in Vietnam In the "3-legged tripod" strategy, VinFast has invested in building the first and largest LFP rechargeable battery factory in Vietnam With a high degree of automation, modern and optimized production process, the LFP rechargeable battery cell joint-venture factory ensures to supply the necessary amount of battery cells for VinFast's electric cars using LFP batteries Moreover, the LFP battery cell factory is an important component in the strategy of autonomy in battery supply for VinFast electric vehicles The autonomy of the combined battery supply as well as the very cheap labor cost of Vietnamese workers (16 times lower than the US and EU) helps VinFast save quite a lot of production costs such as outsourcing, which contributes to VinFast's final price reduction.
Apply battery rental service when selling electric cars VinFast adapts the policy of selling cars without batteries or renting and exchanging batteries instead of selling batteries because batteries are often quite expensive components when calculating the final price, so renting batteries will reduce VinFast's final cost lower than the competitors This will help VinFast have a competitive advantage in price
Type SUV SUV SUV SUV SUV
Version Plus LR LR AWD
75kWh ER AWD LR AWD USALR AWD
Power AWD 300 kW(402 hp)AWD 378 kW(514 hp) AWD 258 kW (346 hp) AWD 239 kW(320 hp)AWD 239 kW(325 hp)
Torque 620 Nm 644 Nm 580 Nm 605 Nm 605 Nm
87.7 kWh usable 70 kWh usable 88 kWh usable 77.4 kWh usable 77.4 kWh usable
WLTP Source: Arenaev Table 4 VinFast’s competitors in the USA market
In the next 3 years, VinFast should continue to use its competitive pricing strategy to reach more customers, increase revenue, increase market share, and build brand awareness among US consumers.
VinFast can also apply promotion pricing strategies to attract more customers,such as: providing incentives or vouchers for one-time payment customers,free warrants, and some discounts on special days like Black Friday However,this is just a short-term strategy and should not be implemented constantly in the long term.
It is highly recommended that VinFast promote more incentives in credit-term pricing, such as: lower interest rate, flexible repayment terms, etc This strategy offers customers more flexibility and convenience in paying as well as using the products.
Sales strategy
VinFast has ambitious goals for the future since it expects the electric vehicle sales to grow nearly 600% by the end of the year To achieve this stage, the EV maker is mulling adding new models, including an electric truck and a low- cost mini car According to Pham Nhat Vuong, VinFast may produce these two models priced around $10,000 to $12,000 to expand its market, though no additional details were given
The company has focused on applying a low-cost strategy to quickly increase the number of users and its scale to gain recognition in some hot spots like California or Carolina However, it is also necessary for the company to expand its product to the suburban area because according to a report in 2017, 52% of U.S households describe their neighborhood as suburban and only 27% is described as urban area VinFast should consider opening some agencies in those regions to increase the sales revenue of the company as well as extend the brand recognition to more residents in the US.
Research & Development
Team/ Department Structure
Objectives of product: providing the safest, most driver-friendly experience possible for drivers “Connecting intelligence globally” is a cornerstone of VinFast’s growth plan: our research and development (“R&D”).
The VinFast R&D team includes more than 800 in-house professionals (including 140 software engineers) and leverages the expertise of engineers and developers across the related technology companies within the Vingroup ecosystem VinFast also encourages technical teams and R&D leads to partner with leading global experts to undertake product development projects when doing so is more time and cost efficient than in-house R&D.
The development teams work with well-established engineering service providers and suppliers of high-quality components to research and develop differentiated and personalized features, such as virtual assistants, in-car e- commerce, in-car entertainment, facial recognition, voice biometrics and more to create a truly personalized driving experience.
Product R&D collects reviews from customers and tries to make changes to the ingredients and product formulas, which directly affect the taste of drinks to satisfy customers Furthermore, the laboratories actively undertake technical collaboration on a public invitation basis and technical exchanges with other companies to further pursue open innovation initiatives.
Process R&D is responsible for the development and improvement of production technologies, equipment, and plant engineering technologies, and the design, installation, and maintenance of production facilities.
Technology R&D has the mission of optimizing the products in terms of both quality and cost Apply modern technology in the production line; analyze competitors to come up with key business strategies, creating competitive advantages, competing competitors, and ultimately gaining big market share.
The Intellectual Property Division is an organization that acquires and utilizes intellectual property rights such as patent rights and trademark rights from intellectual assets created by corporate activities and promotes activities that lead to continuous business revenue.
Research and Development
With design features, R&D efforts, and philosophy “Technology for Life”,VinFast offered integrated, state-of-the-art technology across its vehicle segments and in the associated mobile application platform To continue augmenting “Technology for Life” offering, VinFast intends to remain at the forefront of automotive technology through our in-house R&D and external partnerships. plans to continuously make our vehicles smarter over time through OTA system updates. intend to leverage the power of data to understand and serve our drivers better through artificial intelligence (“AI”). continue creating a technology ecosystem that allows VinFast to seamlessly adapt to the changing technology landscape broadly. develop features with the driver in mind, such as adding additional languages on our voice assistant, more connectivity with mobile phones and more.
Aiming to expand product offerings, VinFast plans to introduce new trims for
VF 8 and VF 9 in the next two years (2023 and 2024) Its in-house development of new products is based on research on the demands of our drivers in the U.S and they were built to be nimble in responding to market opportunities.
“green” trim is expected to be made from sustainable materials and serve as a more eco-friendly option for drivers.
“lux” trim is expected to be made with higher-end materials to offer drivers a more luxurious surrounding and feature elevated E/E performance, interior design, infotainment and ADAS features.
Regarding the battery supply, VinES - affiliates in the Vingroup ecosystem, is expected to grow in lockstep to remain a tier 1 supplier of batteries, ProLogium, a manufacturer of next-generation solid-state batteries, which is believed that it will lead to future opportunities for VinFast and VinES to collaborate in applying next-generation solid-state battery technology to VinFast vehicles It might reduce uncertainties associated with reliance on unrelated third parties outside of the Vingroup ecosystem for batteries.
Additionally, concerning global warming and climate change, VinFast plans to strategically collaborate with VinES to operate a battery recycling program in the pursuit of achieving zero waste to landfill This action is expected to generate recognition for the brand, while also promoting a well-rounded and inclusive environment which will be attractive to current and future VinFast stakeholders.
Not only R&D for products, but customer services also need to be enhanced. VinFast plans to build upon our service network and mobile service platform to ensure on-demand coverage for all drivers, as well as continue developing technology to make servicing a remote or hands-free process to the greatest extent possible.
Early 2023 Launch the VF 9 (E-segment).
2023 Launch the VF 5 (A-segment), VF 6 (B-segment) and
Apply to CARB to have vehicles included in the incentive programs.
September, 2023 Transfer machinery and equipment of battery cell factory to
The end of 2023 Plan to open more than 70 showrooms across North
The E-Mobility platform will be integrated with widely available charging networks while providing an easy experience through Plug & Charge.
Early 2024 Plan to implement components of ADAS Level 3.
Thereafter progress to ADAS Level 4 capabilities.
2024 Build a manufacturing facility spanning across a site measuring approximately 712 hectares in Chatham County, North Carolina.
2026 Plan to expand global maximum production capacity to a rate of up to 1,100,000 vehicles per year.
2027 Continue growing global footprint into areas where we expect high EV demand growth.
Offer an expected total addressable market (“TAM”) of $1.3 trillion.
2040 Be carbon neutral in all operations
Technical Partners
* ADAS: Advanced Driver Assistance Systems
Collaborate in the development and production of CATL integrated intelligent chassis (“CIIC”), skateboard chassis products that integrate battery packs, electric motors and other core systems and components of an EV into a single layer at the bottom of the vehicle, with the goal of reducing manufacturing costs, vehicle weight and energy consumption and maximizing cabin space
- Samsung SDI, CATL, and Gotion Inc
- Production of lithium iron phosphate (LFP) batteries
Span the full spectrum of battery R&D, manufacturing, testing, performance and cost optimization and battery recycling
Vingroup Give license to exercise certain licensed intellectual property, mainly comprising trademarks, as well as some know-how, patents and copyrights, and other intellectual property necessary
Pininfarina design firm Provide design for its flagship premium
EV SUVs, the VF 8 and VF 9
(“AVL”) and FEV Provide certain components of our powertrain and battery Amazon Alexa Provide Virtual Assistant
Exploring global recycling solutions for VinES and VinFast
Supply raw materials used in the production of batteries
IP, patent, copyright, brand
Patent A vehicle engineering design and development
A cybersecurity EDS controller, infotainment-related engineering consultancy services and offshore engineering activities
Design and development of our VF 5 model Electrical and electronics testing and validation of our EV and ADAS L3 development support
Battery Management System (BMS) Battery Architecture Pack
E-MotorInfotainment HardwareInfotainment Software
Copyrights Engineering development support of the electrical & electronic delivery
EV (VINFAST VF 5, VINFAST VF 6, VINFAST VF 7, VINFAST VF 8 and VINFAST VF 9) and e-scooter names (Klara, Theon and Feliz)
Staffing and Operations
Organizational Structure
General Manager o Responsible for overseeing all operations of the US subsidiary. o Reports directly to the Vinfast headquarters in Vietnam.
Sales and Marketing Department o Develops and implements sales strategies to drive vehicle sales in the US market. o Conducts market research, identifies target customer segments, and implements marketing campaigns. o Manages relationships with dealerships, distributors, and sales representatives. o Collaborates with the product development team to align marketing efforts with product launches and updates.
Operations Department o Manages the day-to-day operations of the US subsidiary, including manufacturing and supply chain. o Oversees production planning, quality control, and logistics activities. o Collaborates with global manufacturing partners and ensures adherence to quality standards. o Implements efficient manufacturing processes and optimizes operational efficiency.
Finance Department o Manages financial planning, budgeting, and accounting functions of the
US subsidiary. o Monitors financial performance, analyzes variances, and prepares financial reports. o Ensures compliance with local financial regulations and tax requirements. o Collaborates with the VinFast headquarters on financial planning and strategic decision-making.
Human Resources Department: o Manages all aspects of human resources, including recruitment, training, and employee relations. o Develops HR policies and procedures in alignment with local labor laws and Vinfast's global HR guidelines. o Conducts talent acquisition and retention activities. o Implements performance management systems and employee development programs.
Customer Service Department: o Provides after-sales service and support to customers in the US market. o Handles customer inquiries, warranty claims, and resolves any issues or complaints. o Manages customer feedback and ensures a high level of customer satisfaction. o Works closely with dealerships and service centers to deliver a superior customer experience.
Technical Support Department: o Provides technical support and assistance to customers, dealerships, and service centers. o Offers guidance on vehicle maintenance, troubleshooting, and repairs. o Collaborates with the product development team to address technical issues and implement updates or improvements. o Develops technical training programs for dealership personnel and service technicians.
Staffing Plan
According to a statement from the North Carolina Department of Commerce reported by WCNC Channel, stating that VinFast will build its first car manufacturing plant in North America in Chatham County, located southwest of the city of Raleigh The factory is expected to commence operations in 2024. VinFast plans to recruit 7,500 workers for the new plant from now until 2027, with an average salary of $51,000 Below is the staffing plan that we made according to the estimated number.
Market Research Analysts: 10 staff members Responsibilities: Collect and analyze data, develop surveys and questionnaires, interpret research findings, provide insights for decision-making, and support strategic planning.
Business Development Managers: 15 staff members Responsibilities: Conduct market analysis, identify potential clients or partners, negotiate contracts, build relationships, develop and implement business development strategies, and achieve revenue targets.
Strategy Analysts: 10 staff members Responsibilities: Conduct research, analyze industry trends, assess competitors, assist in the formulation of business strategies, identify growth opportunities, and provide recommendations to senior management.
Regional Sales Managers: 10 staff members Responsibilities: Set sales targets, develop sales strategies, manage and motivate the sales team, monitor market trends, build and maintain relationships with key customers, and ensure the achievement of sales goals.
Sales Representatives: 350 staff members Responsibilities: Promote and sell Vinfast vehicles, build relationships with dealerships, achieve sales targets.
Marketing Managers: 15 staff members Responsibilities: Develop marketing plans, conduct market research, identify target markets, create and manage marketing budgets, oversee advertising and promotional activities, coordinate with cross-functional teams, and track campaign performance.
Marketing Specialists: 50 staff members Responsibilities: Develop and implement marketing strategies, conduct market research, manage advertising campaigns, coordinate promotional events.
Advertising and Promotion Specialists: 20 staff members Responsibilities:Create advertising materials, coordinate marketing campaigns, manage media relations, negotiate advertising contracts, monitor campaign effectiveness, and analyze market trends and consumer behavior.
Social Media Managers: 5 staff members Responsibilities: Develop social media strategies, create engaging content, monitor social media channels, interact with customers, analyze social media data and insights, manage social media advertising, and build Vinfast’s reputation through online platforms.
Brand Ambassadors: 2 staff members Responsibilities: Act as the face of Vinfast, represent the brand at events, engage with customers, create brand awareness.
Customer Service Managers: 10 staff members Responsibilities: Oversee customer service operations, handle customer inquiries and complaints, ensure high-quality customer experience, train and manage customer service representatives, develop and implement customer service strategies.
Customer Service Representatives: 200 staff members Responsibilities: Handle customer inquiries, provide product information, assist with purchasing decisions, resolve customer issues or complaints.
Technical Support Specialists: 50 staff members Responsibilities: Provide technical assistance and support to customers, diagnose and troubleshoot technical issues, resolve customer problems, offer guidance on product usage, escalate complex issues to appropriate teams.
R&D Managers: 10 staff members Responsibilities: Manage research and development projects, set R&D goals and strategies, allocate resources, oversee R&D teams, collaborate with other departments, track project progress, ensure adherence to timelines and budgets.
R&D Engineers: 100 staff members Responsibilities: Conduct research and development activities, design and develop new products or technologies, perform experiments and tests, analyze data, collaborate with cross-functional teams, contribute to innovation and product improvement.
Product Managers: 10 staff members Responsibilities: Manage the lifecycle of products, conduct market research, define product features and specifications,collaborate with cross-functional teams, develop product strategies, oversee product development and launch.
Design Engineers: 150 staff members Responsibilities: Design and develop new products or components, create technical drawings and specifications, collaborate with other engineers and stakeholders, use computer-aided design (CAD) software, ensure product feasibility and functionality.
Prototype Engineers: 30 staff members Responsibilities: Build prototypes of new products or components, collaborate with design engineers and product managers, test and evaluate prototypes, identify and address any design flaws or performance issues.
Testing and Quality Assurance Engineers: 50 staff members Responsibilities: Develop and implement testing procedures and protocols, conduct quality checks and inspections, analyze product performance and reliability, identify and resolve quality issues, ensure compliance with industry standards.
Plant Managers: 5 staff members Responsibilities: Oversee overall operations of the manufacturing plant, ensure production targets are met, manage resources and budgets, implement safety and quality protocols, coordinate with other departments, drive process improvements.
Production Managers: 30 staff members Responsibilities: Oversee manufacturing operations, coordinate production schedules, manage production teams, ensure efficient production processes.
Production Supervisors: 150 staff members Responsibilities: Supervise and manage production line activities, monitor production schedules and output, ensure adherence to quality standards, train and guide assembly line workers, troubleshoot production issues.
Assembly Line Workers: 4,000 staff members Responsibilities: Perform tasks on the assembly line, follow production instructions, assemble components or products, operate machinery and tools, maintain cleanliness and safety standards, meet production targets.
Quality Control Inspectors: 100 Responsibilities: Implement quality control measures, conduct inspections and audits, ensure adherence to quality standards.
Logistics and Supply Chain Managers: 10 staff members Responsibilities: Manage logistics activities, coordinate shipments, optimize supply chain operations.
Recruitment and Hiring
Develop and promote Vinfast's unique employer brand, highlighting the company's values, mission, and commitment to innovation and sustainability.Showcase Vinfast's strong presence in the global automotive industry and emphasize the opportunity to be part of a growing and ambitious organization.
Utilize various channels, such as the company website, social media platforms, and professional networking sites, to communicate the employer brand and company culture.
Create compelling job postings that highlight the exciting opportunities available at Vinfast and clearly outline the qualifications and expectations for each role.
Utilize industry-specific job boards, professional networking sites, and online platforms to reach the target talent pool.
Tailor job descriptions to attract candidates with relevant skills and experience in the automotive industry, electric vehicle technology, and sustainable mobility.
Establish partnerships with universities and colleges offering relevant programs in engineering, automotive design, marketing, business, and other related fields.
Attend career fairs, host informational sessions, and engage with students through guest lectures, workshops, and competitions.
Offer internships and co-op programs to attract top talent early on and provide them with hands-on experience in the automotive industry.
Participate in industry conferences, trade shows, and networking events to connect with professionals in the automotive and technology sectors.
Engage with industry associations, local business organizations, and professional communities to expand Vinfast's network and access a wider pool of qualified candidates.
Encourage employees to participate in industry events and serve as brand ambassadors, showcasing Vinfast's work culture and career opportunities.
Implement an employee referral program to encourage current employees to refer top talent from their professional networks.
Provide incentives, such as referral bonuses or recognition programs, for successful hires resulting from employee referrals.
Promote the referral program internally through various communication channels and regularly update employees on open positions and the types of candidates Vinfast is seeking.
Collaborations with Automotive Associations and Institutions:
Collaborate with automotive associations, research institutions, and innovation hubs to tap into their networks and access top talent in the automotive industry.
Support industry-specific initiatives, sponsor research projects, and participate in mentorship programs to foster relationships with key influencers and emerging talent.
Develop a structured and comprehensive interview process that includes multiple rounds of interviews, technical assessments, and behavioral evaluations.
Involve cross-functional teams in the interview process to assess candidates from different perspectives and ensure a thorough evaluation.
Provide candidates with a positive and engaging interview experience, demonstrating Vinfast's commitment to professionalism and transparency.
Offer competitive compensation packages and benefits that align with industry standards and reflect the value Vinfast places on its employees.
Highlight unique perks and incentives, such as opportunities for professional growth, flexible work arrangements, and a supportive work environment.
Regularly review and benchmark compensation packages to ensure they remain attractive to top talent in the US market.
Monitor online employer review platforms and address any negative feedback promptly and professionally.
Encourage satisfied employees to share positive reviews and testimonials about their experience working at Vinfast.
Leverage social media and other digital platforms to showcase employee success stories, company achievements, and a positive work culture.
Emphasize Vinfast's commitment to employee growth and development through training programs, mentorship opportunities, and career advancement prospects.
Clearly communicate the potential for professional growth within the organization, showcasing success stories of employees who have advanced their careers at Vinfast.
Promote a culture of diversity and inclusion by actively seeking a diverse talent pool and fostering an inclusive work environment.
Develop partnerships with diversity-focused organizations and participate in diversity job fairs to attract a wide range of candidates.
Implement strategies to eliminate bias in the hiring process and ensure equal opportunities for all applicants.
Strong Employer Value Proposition (EVP):
Craft a compelling EVP that showcases Vinfast's unique selling points as an employer, such as opportunities for innovation, career advancement, and the chance to contribute to sustainable transportation solutions.
Communicate the EVP consistently across all recruitment channels and highlight the company's commitment to employee well-being, work-life balance, and a positive corporate culture.
Regularly monitor Vinfast's employer brand perception through surveys, online reviews, and feedback from candidates and employees.
Identify areas for improvement and take proactive measures to enhance the employer brand and address any issues or concerns raised by candidates or employees.
Develop a comprehensive onboarding process to ensure new hires are integrated smoothly into the organization.
Provide thorough orientation sessions, assign mentors or buddies to new employees, and offer training programs to familiarize them with Vinfast's culture, values, and operations.
Continuously evaluate and refine the recruitment strategy based on market trends, feedback from candidates, and the evolving needs of the organization.
Stay updated on emerging recruitment technologies and strategies to optimize the talent acquisition process and attract top talent effectively.
Training and development
Create a comprehensive training program for employees to ensure they have the necessary skills and knowledge:
Vinfast provides to employees over 750 online and offline courses in leadership management and training In 2021, we delivered approximately 180,000 hours of professional training to employees It also provides robust pre-employment training, undertake regular risk assessments, perform regular workplace safety monitoring, audit (internal and external) and training.
Offer technical training for automotive technicians and diagnostic specialists.
Launching a Training Centre for Mechatronics and Mechanical Engineering inHải Phòng Economic Zone, in which participants will receive a vocational certificate of German standards and get the opportunity to Vinfast’s automobile and electric motorcycle plant as well as nearly 50.000 German companies around the world Vinfast has also started a training program with I-CAR to improve its technician professional skills regarding auto collision repairs following international standards
Develop leadership and management training programs for supervisors and managers
Vinfast presents many training series on leadership for its manager, specialized training program and on average each manager is trained for 114.6 hours per year
Scheduling
Develop a scheduling system that aligns with the local market demand and business hours.
Vinfast’s showrooms, service centers and other customer-facing facilities are typically open during business hours and they implement a scheduling system for maintenance, test drive and customer support to ensure that their products and services aligns with customer’s demand
The year 2021 saw a major leap forward for electric vehicle sales as figures doubled from 2020 to 6.75 million and sales exceeded 10 million in 2022, expecting to reach 14 million in 2023.
Utilizing this major sales trend of electric vehicles, on January 6th of 2022, Vinfast officially opened for pre-order its two EVs: VF8 and VF9 with various kinds of promotion, which attracted many customers to deposit their money
Establish key performance indicators (KPIs) for each department and position: o Sales and Marketing: Sales targets, market share growth, customer satisfaction ratings. o Operations: Production efficiency, quality control metrics, supply chain optimization. o Finance: Budget adherence, financial forecasting accuracy, cost reduction initiatives. o Human Resources: Employee satisfaction, retention rates, training program effectiveness. o Customer Service: Response times, issue resolution rates, customer feedback ratings. o Technical Support: Service efficiency, diagnostic accuracy, customer satisfaction ratings.
Conduct regular performance reviews and provide feedback to help employees improve and meet their goals.
Implement recognition and rewards programs to motivate and retain high- performing employees.
Operations Management
Establish a production facility or secure partnerships with local manufacturers to ensure timely vehicle supply.
Vinfast has a manufacturing facility in Hai Phong, which is estimated to be able to assemble and produce 250.000 cars per year It collects automobile spare parts supplied by more than 4.000 manufactures to assemble in the factory. After stabilizing its supply chain and optimizing the production line, Vinfast has delivered its electric cars to more than 4.000 customers at the end of 2022 and it expects to sell as many as 50.000 cars EVs in 2023.
Implement robust quality control measures to ensure vehicles meet local regulations and customer expectations.
Set up an after-sales service network to provide warranty support,maintenance, and repairs