Vinfast, a Vietnamese automaker, quickly rose to prominence after being founded in 2017 by Vingroup, one of Vietnam’s largest conglomerates.
Vingroup was founded in Ukraine on August 8, 1993 as “Technocom”. The company was founded as a food company, initially producing dried food products, including instant noodles under the brand Mivina by Phạm Nhất Vượng. During the early years of the 21st century, Technocom was ranked among Ukraine’s Top 100 largest and most influential companies.
In 2000, the company started operations in Vietnam.
From the beginning, Vinfast aimed to become a global brand, entering the automotive market with the ambitious goal of producing high-quality, competitive cars that could appeal to both Vietnamese and international consumers.
Vinfast got off to a successful start by partnering with major industry players such as BMW, Magna Steyr and Pininfarina, allowing them to accelerate development using their accumulated expertise in automotive design and engineering. They unveiled their first cars, the Vinfast Lux A2.0 sedan and the Lux SA2.0 SUV, at the 2018 Paris Motor Show, showcasing their ambitions on the world stage. Cars built on previous generation BMW platforms were well received for their design and competitive pricing, establishing Vinfast as a serious player in the industry.
Recognizing the global shift towards electric vehicles (EVs), Vinfast made a U-turn from the start and dedicated itself to an all-electric future. By 2022, they have started rolling out their electric SUV models such as the VF 8 and VF 9, with plans to phase out gasoline-powered cars entirely. The EVs marked the company’s entry into the US and European markets, and Vinfast has set up offices and manufacturing facilities in places like North Carolina to support its global expansion.
Vinfast’s expansion into the international market was rapid, but faced difficulties. The US market, in particular, is competitive with established electric vehicle manufacturers, and newcomers face hurdles such as brand recognition, charging infrastructure and regulatory compliance. Despite this, Vinfast has remained resilient, offering attractive pricing, innovative financing options and a warranty program to entice early adopters.
Vinfast aims to strengthen its position in the global EV market by leveraging Vietnam’s growing technological base and affordable labor market. With ambitious plans to introduce various models of electric vehicles, they are focused on environmental friendliness and the use of technological innovations. Vinfast’s future depends on continued product development, brand building efforts and execution of global expansion plans.
In a short time, Vinfast has transformed from a newcomer in a developing economy to a promising electric player on the world stage, making it one of the most interesting stories in the automotive world today.
© Preems