In September 2017, a 335-hectare swamp in Cat Hai District, Hai Phong City, was brightly lit up, preparing for the groundbreaking ceremony of one of Vietnam’s few nationally significant projects: VinFast automotive manufacturing plant. From this moment, Vietnam’s history recorded three monumental milestones: the swift march of the Tay Son Army, the crossing of the Truong Son mountain range, and now, the footsteps of VinFast.
Choice #1: Going Global
Before the factory was even completed, VinFast gathered top talent from the global automotive industry, instilling in them an unparalleled startup spirit and infusing this mission with a deep sense of national pride. German engineering licensed from BMW, designs from the renowned Italian studio Pininfarina, Austrian engineering by Magna Steyr, and a takeover of Chevrolet’s operations in Vietnam—VinFast became a melting pot of automotive excellence.
On October 2, 2018, at the Paris Motor Show, against a backdrop of the Vietnamese red flag with a yellow star, VinFast unveiled two models, the LUX A2.0 and LUX SA2.0. Millions of eyes—Parisians, international journalists, and car enthusiasts alike—looked on in awe. From that day forward, Vietnam became known for more than just three keywords: War, Conical hats, and Ao dai. One year after the Paris Motor Show, the LUX A2.0 and LUX SA2.0 officially went on sale in Vietnam. Everything VinFast achieved in its first three years was merely a trial run.
Choice #2: Planting a Flag in the U.S.
There’s a saying in the business world: “The most dangerous place is often the safest.” On November 18, 2021, VinFast introduced its VF e35 and VF e36 electric vehicles at the Los Angeles Auto Show, the world’s premier auto exhibition. Once again, global media was left stunned, and the YouTube community stayed up all night live-streaming the event. Before the show, VinFast’s U.S. communications team thought the news would be a small dish for the Vietnamese diaspora; instead, it became a global phenomenon. The “American Dream” had been reignited. VinFast’s name lit up Times Square in New York, and the global EV map gained a new red dot from Vietnam.
On July 28, 2023, VinFast broke ground on its first factory outside Vietnam, in North Carolina, USA. Selling fish sauce to Vietnamese in America is easy, but selling cars is a whole other challenge. Millions of Vietnamese Americans speak the language and love their homeland, but they buy cars like Americans: good price or no dice. Add to that the challenges of warranties, spare parts, repairs, charging stations, dealerships, battery leasing, and customer service.
Trung Tin, a used-car dealer in the U.S., noted that the auto business there operates similarly to Vietnam—dealership groups often distribute multiple brands and have showrooms across several states. With VinFast officially listed on NASDAQ, it has raised its international flag, subjecting every move, big or small, to the scrutiny of Wall Street wolves.
By the end of 2023, Tesla controlled 60% of the U.S. EV market, leaving the crumbs for over 20 other EV car brands, 60 models from the U.S., Korea, Germany, Japan, and China to fight over. VinFast has yet to claim a slice of the North American EV market, including Canada. On February 25, 2024, VinFast will break ground on an EV factory in India, the world’s most populous country with 1.4 billion people and an annual car consumption of 4 million vehicles—10 times that of Vietnam—where bullock carts still dominate rural roads.
Choice #3: Launching an Electric Taxi Fleet
On April 14, 2023, Vietnam’s first all-electric taxi service, Green SM, officially hit the streets, serving the public with unmatched enthusiasm. The business model is simple: buy VinFast cars, hire salaried drivers with commission incentives, and then sell or lease the vehicles to drivers for rideshare services. Simple math: 1 + 1 = 11.
Over time, Xanh SM’s ubiquitous presence has, from a branding perspective, painted Vietnam green with electric vehicles, introducing EVs to the masses in a way that is both convincing and endearing. For those who haven’t test-driven an EV yet, being a passenger is an excellent way to experience one. Even better if you strike up a chat with the driver. From an operational perspective, every ride generates valuable data: routes, terrain, battery usage—helping VinFast fine-tune its technology, software, charging stations, and service locations.
Financially, imagine this (by 2030): 100,000 Xanh SM taxis operating day and night nationwide, plus 100,000 more electric rideshare vehicles. Xanh SM has already rolled into Laos, with Southeast Asia next on the map. When that happens, the “billionaire’s chess move” envisioned by VinFast will be fully realized.
VinFast Expands the Borders
VinFast is now selling EVs in North America and the Middle East, with India and Southeast Asia up next—strategic markets with a combined population of over 3 billion. In Vietnam, the VinFast VF3 is a pre-order sensation, pushing rivals like the Wuling Mini EV back to their place. A strategic partnership with CarOn Holdings aims to establish nationwide EV service centers by 2030. Public charging stations are expanding rapidly, supported by Petrolimex, Vietnam’s largest fuel corporation, ensuring a green Vietnam within the next decade.
Despite competition from Chinese EV makers like Wuling, BYD, and Aion, their sales are mere drops in the bucket compared to VinFast’s autumn harvest. By the end of Q3 2024, VinFast had delivered over 50,000 EVs, closing in on its target of 80,000 for the year. The VF3 is the cornerstone of its success in Vietnam and the Philippines.
Truthfully, Vietnam doesn’t have much to boast about on the global stage. Yet, with every (often unpredictable) move it makes, VinFast is redefining how the world sees Vietnam. Everything VinFast has achieved—and the challenges it still faces—is a source of national pride. For Southeast Asia’s two automotive powerhouses, Indonesia and Thailand, with no homegrown car brands of their own, merely assembling and manufacturing parts, it could take decades, even centuries, before another “VinFast” emerges in Vietnam.
