Vingroup sees golden opportunity for VinFast EVs: Chairman

By Tuong Thuy
Thu, May 12, 2022 | 1:05 am GMT+7

The big shortage of electric vehicles (EVs) is a golden opportunity for VinFast to conquer the global market and build its brand, said Pham Nhat Vuong, Chairman of Vingroup, the automaker's parent company.

"The world is very short of electric cars. Therefore, good products will sell very well," Vuong told Vingroup’s annual general meeting in Hanoi on Wednesday.

He said 4,000 units have been ordered by the U.S. market to date, which suits to the company's plan to make 17,000 this year.

 Vingroup Chairman Pham Nhat Vuong in his office. Photo courtesy of the group.

Vingroup Chairman Pham Nhat Vuong in his office. Photo courtesy of the group.

In response to a shareholder's inquiry about production inputs, Vuong said the supply chain disruptions due to China's Covid-19 situation have caused negative effects as some components are sourced from this market.

VinFast is accelerating its strategy of localizing components by inviting foreign suppliers to set up shop in Vietnam, with incentives like exemption of land and workshop rent for 10-15 years.

"We want to make the auto supporting industry develop strongly. The localization rate of VinFast vehicles is now 60% and will be 80%," Vuong told the meeting.

He noted that about 600,000 EVs to be sold in the U.S. will be made in Vietnam as the capacity of its factory there is only 150,000 units per year, while the plan is to sell 750,000 to this market in 2026.

The chairman said an initial public offering (IPO) for VinFast might be delayed until next year due to market uncertainty. "We are seeking for an IPO in the fourth quarter, but given numerous market uncertainties, we may delay it to next year, if necessary," Vuong said.

"The IPO is not just for fundraising. It's also about marketing and building VinFast's position in the global market," he added.

Starting operations in 2019, VinFast is betting big on the U.S. market, where it has already started sales with two all-electric sport utility vehicles (SUVs) and a battery leasing model that will reduce the purchase price.

VinFast and the government of North Carolina in late March signed a memorandum of understanding for the establishment of VinFast’s $4 billion manufacturing plant. The young automaker had earlier said it plans to begin construction of the plant as soon as permits are granted with a goal of starting production by 2024.

VinFast, a Singapore-incorporated subsidiary of Vietnam's Vingroup, filed for an IPO in the U.S. on April 7.

Two VinFast all-electric SUVs are on display at the Los Angeles Auto Show 2021 in November 2021. Photo courtesy of VinFast.

Two VinFast all-electric SUVs are on display at the Los Angeles Auto Show 2021 in November 2021. Photo courtesy of VinFast.

On Tuesday (Canada and Europe time), VinFast announced its pricing details and battery subscriptions for the VF 8 and VF 9 in Canada, as well as for the European markets, including Germany, France, and the Netherlands.

Vingroup reported its net revenue at VND125,688 billion (over $5.45 billion) in 2021, and recorded a consolidated after-tax loss of VND7,558 billion ($327.7 million), its first-ever loss in years. The loss mainly came from spending on its Covid-19 control and prevention programs and preparation for stopping the production of fossil fuel cars.

For 2022, Vingroup has set a net revenue target from business activities of about VND140,000 billion ($6.07 billion), and after-tax profit of about VND6,000 billion ($260.2 million).

Comments (0)
  • Read More
Halal market presents major opportunities for Vietnamese businesses

Halal market presents major opportunities for Vietnamese businesses

The global Halal market is projected to reach $5 trillion by 2030, with Malaysia alone expected to hit $113.2 billion, said Shariza binti Abdul Rasheed, Halal product manager at Maybank Malaysia.

Economy - Thu, August 7, 2025 | 9:18 pm GMT+7

Steel major Hoa Phat to pour extra $130 mln into central Vietnam plant

Steel major Hoa Phat to pour extra $130 mln into central Vietnam plant

Vietnam’s leading steelmaker, Hoa Phat Group (HoSE: HPG), will increase investment in its Dung Quat 2 iron and steel production complex by VND3.4 trillion ($129.7 million) as part of an expansion plan.

Industries - Thu, August 7, 2025 | 8:03 pm GMT+7

Vietnam’s army-backed construction firm proposes 14 offshore wind power projects

Vietnam’s army-backed construction firm proposes 14 offshore wind power projects

Lung Lo Construction Corporation (LLC), under the Ministry of National Defense, has submitted investment proposals for 14 offshore wind power projects with a combined capacity of 9,000 MW.

Energy - Thu, August 7, 2025 | 5:07 pm GMT+7

Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure

Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure

Vietnam's agri major Hoang Anh Gia Lai JSC has been fined VND92.5 million ($3,528) for failing to disclose bond-related information as required by law.

Companies - Thu, August 7, 2025 | 4:31 pm GMT+7

Northern Vietnam province accelerates $2.2 bln LNG-to-power project

Northern Vietnam province accelerates $2.2 bln LNG-to-power project

Quang Ninh province will hand over 4.9 hectares of reclaimed land to the Quang Ninh LNG-fuelled power plant project before August 11, local authorities stated at a meeting on Wednesday.

Energy - Thu, August 7, 2025 | 4:17 pm GMT+7

Vietnam's seafood firms ride profit wave ahead of US tariff hike

Vietnam's seafood firms ride profit wave ahead of US tariff hike

Vietnam’s seafood companies reported surging profits in Q2/2025, driven by importers ramping up purchases ahead of new U.S. reciprocal tariffs.

Economy - Thu, August 7, 2025 | 2:21 pm GMT+7

Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC

Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC

Dragon Capital Group, Vietnam's largest asset manager, has appointed Le Anh Tuan as CEO of its arm Dragon Capital Vietfund Management Joint Stock Company (DCVFM), starting from October 1, 2025.

Companies - Thu, August 7, 2025 | 2:01 pm GMT+7

Indonesia, Malaysia, Thailand expand local currency transaction network

Indonesia, Malaysia, Thailand expand local currency transaction network

Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand have added new Appointed Cross Currency Dealer (ACCD) participating banks to broaden services for bilateral transactions in local currencies across the three nations, Bank Indonesia said in a statement on Tuesday.

Southeast Asia - Thu, August 7, 2025 | 12:48 pm GMT+7

ASEAN to sign MoU on regional power grid implementation

ASEAN to sign MoU on regional power grid implementation

ASEAN member states are set to sign an MoU on the implementation of the ASEAN Power Grid during the bloc’s Energy Ministers’ Meeting this October.

Southeast Asia - Thu, August 7, 2025 | 12:43 pm GMT+7

Vietnam overtakes Thailand to become world's second-largest rice exporter

Vietnam overtakes Thailand to become world's second-largest rice exporter

Vietnam has outranked Thailand as the world’s second-largest rice exporter in the first half of 2025, Thai PBS reported on August 3, citing the Thai Rice Exporters Association.

Companies - Thu, August 7, 2025 | 12:41 pm GMT+7

Vietnam posts trade surplus of $10.18 bln in 7 months

Vietnam posts trade surplus of $10.18 bln in 7 months

Vietnam’s export earnings grew by 14.8% to $262.44 billion in the first seven months of this year, while its import turnover rose by 17.9% to $252.26 billion, resulting in a trade surplus of $10.18 billion.

Economy - Thu, August 7, 2025 | 12:19 pm GMT+7

Malaysia pledges big purchases, investments with US

Malaysia pledges big purchases, investments with US

Malaysia has agreed to buy and invest over $240 billion (MYR1.02 trillion) in the U.S. to help reduce the trade gap between the two countries.

Southeast Asia - Thu, August 7, 2025 | 12:08 pm GMT+7

Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt

Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt

Novaland, a major real estate developer in Vietnam, plans to issue nearly 152 million new shares to swap more than VND6 trillion ($228.8 million) worth of bond principal.

Companies - Thu, August 7, 2025 | 10:11 am GMT+7

Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil

Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil

Disbursed foreign direct investment (FDI) capital in Vietnam reached $13.6 billion in Jan-July, up 8.4% year-on-year, despite U.S. tariff concerns.

Economy - Thu, August 7, 2025 | 9:57 am GMT+7

Malaysia steps up efforts to explore nuclear energy potential

Malaysia steps up efforts to explore nuclear energy potential

Malaysia’s Minister of Science, Technology and Innovation Chang Lih Kang on Wednesday reaffirmed his ministry’s commitment to enhancing cooperation with the Ministry of Energy Transition and Water Transformation (PETRA) in exploring the potential of nuclear energy.

Southeast Asia - Thu, August 7, 2025 | 8:10 am GMT+7

Indonesia's economy grows faster than expected

Indonesia's economy grows faster than expected

Indonesia's economy expanded by 5.12% year-on-year in Q2/2025, up from 4.87% in the previous quarter, exceeding the forecasts of many economic organizations, which had previously projected a rate of less than 5%, according to Statistics Indonesia (BPS).

Southeast Asia - Thu, August 7, 2025 | 8:07 am GMT+7