VinFast inks EV distribution pact for Micronesia, launches EV charging stations venture

VinFast, the electric vehicle arm of Vietnamese conglomerate Vingroup, said Wednesday that it has signed a cooperation agreement with Guam AutoSpot to distribute its EVs in Micronesia.

Under the agreement, Guam AutoSpot will be VinFast's official distributor throughout Micronesia, which comprises Guam and the rest of the Micronesian island groups.

Guam AutoSpot is expected to begin importing VinFast EVs, including models VF 7, VF 8, VF 9 and DrgnFly electric bicycles, as well as vehicle components, for distribution starting May 2024.

VinFast said the agreement was part of the company’s strategy to expand operations to at least 50 countries around the world in 2024.

In addition to key markets like the U.S., Canada and Europe, VinFast is aggressively expanding into several Asian countries including India, Indonesia, Thailand and the Philippines, as well countries in the Middle East and Africa.

Steve Tran, representative of VinFast Global, said: “Micronesia is a potential electric vehicle market as consumers are showing high interest in green and sustainable mobility. We are confident that the cooperation agreement with Guam AutoSpot will help VinFast quickly reach the market and deliver to customers the most diverse, quality electric vehicle products.”

Charging station venture

Two days earlier, Pham Nhat Vuong, chairman of Vingroup and CEO-founder of VinFast, announced the establishment of V-Green Global Charging Station Development Company (V-Green).

Spun off from VinFast's charging station development division, V-Green, majority-owned by Vuong with a 90% stake, will spearhead the creation of a comprehensive charging network.

This strategic move will allow V-Green to focus solely on infrastructure investment independently from VinFast, and enable the Vietnamese electric manufacturer to prioritize market expansion and sustainable development, he said.

In Vietnam, V-Green will be responsible for operating and managing VinFast's existing charging network.

It will also invest another $404 million over the next two years to build new stations and upgrade and complete its existing network. With this threefold increase in infrastructure investment compared to VinFast's initial plan, V-Green aims to establish charging stations nationwide, making Vietnam one of the world's leading countries in charging infrastructure for EVs.

After about five years of operation, depending on each market and actual fundraising capacity, V-Green will consider expanding charging services to other EV manufacturers, Vuong said.