Through VinFast and Vingroup, Vietnam’s wealthiest individual has demonstrated a commitment to building a sustainable future by prioritizing long-term success over short-term gains. This visionary approach allows the companies to take a long view, addressing the challenges inherent in the electric vehicle industry and contributing to a greener tomorrow. By focusing on sustainability, VinFast is positioning itself as a global warrior in the fight for a cleaner environment.
Vietnam’s economic growth is mirrored in the success of domestic conglomerates like Vingroup. This diversified giant, the parent company of VinFast, contributes an estimated 1.6 percent of Vietnam’s 2023 GDP. Operating across technology-industry, trade & services, and social enterprise, Vingroup has seen its real estate and electric vehicle divisions emerge as key revenue drivers.
Vietnam’s manufacturing sector has flourished, attracting global companies seeking to diversify their supply chains. Low labor costs, a skilled workforce, and an open investment climate have fueled this growth. However, Vietnam has long harbored ambitions of developing its own independent automotive industry, including a domestic supply chain.
Beyond Profits: VinFast’s Commitment to Sustainability
In a recent Bloomberg interview, Pham Nhat Vuong, the CEO of VinFast and Chairman of Vingroup, offered a surprising response when questioned about his company’s long-term financial commitment.
“Until I run out of money,” Mr. Vuong declared, speaking from Vingroup’s Hanoi headquarters. His statement marked a stark departure from the short-term profit focus often associated with business leaders. Instead, it revealed a deep-seated dedication to VinFast’s long-term vision, positioning the company to potentially withstand the challenges currently facing the electric vehicle industry.
Mr. Vuong’s vision for VinFast extends beyond mere business considerations. As Bloomberg reported, he described the project as a “devotion project,” emphasizing his personal commitment.
His inclusion in the list of the world’s 50 most powerful automotive figures underscores VinFast’s growing influence in the global automotive sector. The company’s global expansion plans have the potential to further amplify its impact as the electric vehicle industry continues to evolve.
Diverse Products and Smart Sales Strategies
VinFast’s global ambitions extend beyond market share. The Vietnamese carmaker, under its founder’s leadership, is playing a key role in pushing the electric vehicle revolution forward on a global scale, overcoming various headwinds and uncertainties.
Rising interest rates, a weakening global economy, and potential declines in consumer confidence pose challenges to the electric vehicle market.
VinFast, however, offers a comprehensive electric mobility ecosystem, encompassing eight smart electric car models, one electric bus model, nine electric motorcycle models, and one electric bicycle model.
Its passenger car lineup caters to diverse consumer needs and budgets, ranging from mini e-SUVs to full-sized electric SUVs. At CES 2024, the company unveiled its innovative midsize pickup truck concept.
To ensure supply autonomy and gain a competitive edge in international markets, VinFast is constructing electric vehicle plants in the United States, India, and Indonesia.
In addition to manufacturing, VinFast is aiming to become a comprehensive mobility solutions provider, offering battery subscription options. This mechanism brings the upfront price of VinFast vehicles and the monthly running cost down in line with or even more competitive than many gas-powered vehicles on the market today.
In May 2024, VinFast achieved a significant milestone by becoming the first Vietnamese company to be ranked among the Top 100 most influential companies globally by TIME magazine.
As the world transitions to sustainable transportation, VinFast’s multi-market, multi-product strategy positions it to navigate the challenges and uncertainties of the global automotive landscape./.
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