Vietnam EV maker VinFast: The “From Zero to One" journey

Starting from scratch and just over two years since its first electric vehicles were delivered to customers, VinFast has outperformed all other automakers in Vietnam to become the best-selling vehicle brand in the market.

This success was achieved thanks to a consistent strategy focusing on offering "the best products, the best prices, and the best after-sales services".

"3 Best" pillars helps VinFast secure top spot

"This miracle was something few thought possible," said Associate Professor Dr. Ly Hung Anh from the Ho Chi Minh City University of Technology. Anh is also a member of the New Car Assessment Program for Southeast Asian Countries' (ASEAN NCAP) Technical Committee.

He highlighted the historic moment in Vietnam's automotive industry last year when VinFast surpassed foreign companies from Japan, South Korea, the U.S., and others to become the number one brand in the Vietnamese market.

What is even more remarkable is that this milestone was reached only 5 years after VinFast delivered its first vehicles and just over 2 years since it switched to producing fully electric cars.

With more than 67,000 electric vehicles (EVs) delivered in the first 11 months of 2024, VinFast made Vietnam one of the rare markets in the world where EVs outnumbered traditional internal combustion engine (ICE) vehicles. This is seen as an extraordinary achievement, as the gasoline car market has been established for decades, while the EV era has only just begun.

Anh said that VinFast's success cannot be made without the support from the community. However, to build trust and gain support for an eco-friendly product, the most important thing is that VinFast has delivered superior-quality cars at competitive prices, along with after-sales services that surpass market standards.

"VinFast chose to make EVs from the outset to anticipate future trends, but they still conducted thorough research and mastered the technology from the ground up. The product's quality, particularly its safety standards, far exceed those of competitors in the same segment, laying a strong foundation for sustainable growth. VinFast always considers this as their core value," the expert said.

Echoing, automotive expert Nguyen Thanh Long stated that VinFast is offering customers a diverse "menu" with many options. In just over 2 years, the Vietnamese car brand has become the only EV maker in the market and even the region, with a product range spanning seven EV lines, from mini-SUVs to E-SUVs.

Within each segment, VinFast’s prices are better than those of competitors, while its technology, features, and performance are highly rated. Notably, when comparing total costs and operational expenses, VinFast EVs offer superior value compared to traditional ICE vehicles in the same segment.

"Sales figures show the success of VinFast's consistent strategy. These are superior-quality electric vehicles that outdo gasoline cars but are priced very accessibly to the masses," Long noted.

He also praised VinFast for setting new standards for after-sales services in the Vietnamese automotive market, with the longest warranty period, the most service centers, a nationwide charging station network, and customer-centric policies like a 24-hour parts delivery guarantee.

Self-reliance to lead the way

After just over 7 years in the automotive industry, VinFast has achieved a localization rate of over 60%, aiming for 84% by 2026. This is something many foreign car brands, even after being in the market for decades, have not been able to do.

During her visit to VinFast’s factory in the northern port city of Hai Phong, economist Pham Chi Lan expressed her delight at seeing key EV components, such as the bodywork and motors, being produced right in Hai Phong city, Vietnam.

She highlighted the impressive figure of a 60% localization rate. "I fully believe VinFast can do it. In just over 7 years, it has accomplished more than companies that have been in Vietnam for decades," she said.

These achievements, she believed, have made a significant contribution to the Vietnamese industry. "I hope suppliers will join hands with VinFast to realize Vietnam’s localization and green dreams," she said.

From a technical perspective, Professor Dr. Le Anh Tuan, chairman of the council of the Hanoi University of Science and Technology and a member of the Global Electric Vehicle Network (GEAN), said that in addition to its current production capacity, VinFast is also planning to localize even more components in the future, such as lights, wheels, and brake systems.

With a leading company like VinFast, opportunities for other businesses in the supply chain to grow will also increase. "VinFast is playing a pioneering role - not just in production, but also in building the domestic supply chain," the expert assessed.

He also pointed out that the number of suppliers in the Vietnamese automotive sector is still relatively small, with only around 300 companies offering mid-range value products. In contrast, Thailand has more than 500 tier 1 automotive suppliers and nearly 1,700 tier 2 suppliers. However, he noted that the proportion of local suppliers in Thailand is only about 20%.

Thus, he hoped VinFast’s pioneering role will not only create an automotive technology ecosystem in Vietnam but also increase the participation of local businesses in the ecosystem. "With VinFast's partnership, I believe we will build an even larger ecosystem for Vietnam’s automotive industry, leading to a bright future for the Vietnamese automobile industry and domestic manufacturing," the expert concluded.

A symbol of development in the era of Vietnam’s rise

With more than 67,000 vehicles delivered in the first 11 months of 2024 (an average of more than 200 new VinFast vehicles hitting the road daily), along with a large volume of orders and a strong production and business growth plan, observers said that VinFast’s 2024 goal of maintaining its number one position in the Vietnamese car market was within reach.

Associate Professor Dr. Tran Dinh Thien, former director of the Vietnam Institute of Economics, called VinFast’s rise an "extraordinary achievement." According to this economist, the number one position VinFast has reached is even more meaningful, as EVs are part of the "green development" movement - a forward-thinking industry that leads the way in environmental sustainability for future generations. "VinFast is not just a brand but a symbol of Vietnam’s development in the ‘era of the nation’s rise,’" Thien concluded.

Sharing the same view, Professor Dr. Ly Hung Anh emphasized that Vietnam has long harbored the dream of mastering the automotive industry, a fiercely competitive field that not every country can succeed in. "VinFast's achievement not only gives Vietnam a national automotive symbol that many countries wish for, but it also creates opportunities for the auxiliary industry to grow, providing jobs and income for tens of thousands of people," he said.

From another perspective, experts also believed that VinFast's remarkable figures reflect the increasing confidence of consumers in "Made in Vietnam" electric cars. Clearly, the Vietnamese EV brand is motivating the public to support the green transition and helping to fulfill Vietnam’s net-zero commitment to the international community.

"These achievements are just the beginning. VinFast will have to continue in the long race. In this race, besides its capabilities and qualities, VinFast will always need further support and shared efforts from society - not only to build a world-class Vietnamese brand but also for the green future of many generations to come - a matter of life and death for all of us," concluded Thien.