SOUTHEAST ASIA: VIETNAM REPORT
Vinfast has announced plans to export approximately 5,000 EVs to the U.S., Canada, and Europe by the end of 2022. This is the first time for them to export EVs. The company also plans to start construction of a new EV plant in the U.S. by the end of this year, accelerating its global strategy.
According to the plan, exports to the U.S. and other countries will begin in early November, with delivery to customers starting in December. Vinfast’s CEO revealed that the company has orders for approximately 65,000 EVs worldwide.
On Sept. 10, 2020, the company began shipping its second EV model in Vietnam, the VF8, a 5-seat SUV of two types that runs up to 420 km on a single full charge. The domestic sales price starts at approximately 1.09 billion VND (6.6 million yen). The company plans to keep prices low and expand sales both domestically and internationally by leasing expensive batteries. In North Carolina, the company is also preparing to start operations at a new EV plant in 2024.
Source: The Nikkei
PSR Analysis: Vinfast, which I have featured here frequently, has been very aggressive in their marketing and their growth rate has been impressive. Soon after releasing a gasoline-powered scooter, they announced a four-wheeled design. Soon after releasing these gasoline-powered vehicles, they realized that EVs were going to become a global trend, and they quickly changed course and announced that they would stop manufacturing gasoline-powered vehicles and developed EVs.
The company is also making steady progress in developing the U.S. and European markets with very speedy decisions. Such actions are not possible for a conventional mega-maker. As a latecomer to the market, the company’s light footwork has been well received, and it is gradually gaining media exposure. Their designs are sophisticated, without the impression of being made in Southeast Asia, as was the case in the past. It will be very interesting to see how their products fare in the US and European markets. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
