A year of growth for VinFast: navigating the storm, seizing the opportunity

HANOI, VIETNAM – Media OutReach Newswire – December 26, 2024 – While the EV industry is entering a period of sustainability, but somewhat slower growth, VinFast’s long-term commitment to pure electric vehicles and the support of its parent company, Vingroup, give it a unique advantage. With a long-term vision for green mobility, VinFast has capitalized on the industry slowdown to strategically expand its presence and create strong growth momentum. This year, VinFast has successfully executed this strategy: establishing a solid foundation, strengthening its position during the market downturn and achieving outstanding results in recent months.

While the electric vehicle industry has demonstrated impressive year-over-year growth, it is critical to recognize that this rapid expansion is likely to slow over time. As the EV market matures, a more gradual growth trajectory is anticipated, a common trend seen in any rapidly developing sector.

Nasdaq-listed Vietnamese electric vehicle manufacturer VinFast has long-term growth potential in the industry. The company’s multi-product, multi-market strategy positions it to weather global economic storms and capitalize on favorable business relationships with strategic partners.

VinFast emerges as a global green warrior

VinFast’s performance in 2024 showed the effectiveness of its multi-product and multi-market strategy, driven by strong commercial partnerships with key countries.

Building on its successful Nasdaq IPO, VinFast continued to expand its market footprint in North America and Europe. In 2024, the company officially announces the global launch of the VF 3 mini e-SUV, the VF Wild concept truck and the Drgn Fly electric bike at CES 2024.

VinFast also strengthened its market position in the US by expanding its dealer network, helping to optimize costs and increase brand recognition. This strategic move was aimed at accelerating the delivery of high-quality products and services to North American consumers. As of October 31, 2024, the company had 173 showrooms globally for electric vehicles and 160 showrooms and service workshops for e-scooters, including VinFast showrooms and dealer showrooms.

Demonstrating its commitment to green transformation, VinFast is expanding its presence beyond key markets such as Europe and North America. The company entered the Philippines market, where it officially launched its brand and began delivering electric vehicles. In addition, VinFast has started building a new manufacturing facility in India, signaling its strategic expansion into key regional markets.

In Indonesia, VinFast made a strong debut at the 2024 Indonesia International Motor Show (IIMS). The company introduced its smart electric vehicles, launched attractive sales and warranty policies, and is actively developing its dealer network. Notably, VinFast broke ground on an assembly plant in Indonesia, a key step in increasing production capacity for its global expansion strategy.

VinFast’s innovative battery subscription policy has been a major success in Indonesia. The company received the “Pioneering Initiative Driving Green Transition” award from Detik.com, a prestigious automotive newspaper, and was also recognized by CNN Indonesia for its contribution to the country’s green transformation.

In fact, aligned with Mr. Pham Nhat Vuong’s vision for a sustainable future, VinFast is led by the green ecosystem comprising V-GREEN and Xanh SM. Recently, V-GREEN and Prime Group, a diversified conglomerate, through its subsidiary in the United Arab Emirates, signed a memorandum of understanding to develop a network of charging stations for VinFast electric vehicles in Indonesia.

The MoU signifies the firm commitment of both parties to explore and develop this strategic partnership. The ambitious target is to establish approximately 100,000 VinFast charging stations over the next three years, with a total estimated investment of up to USD 1.2 billion.

This collaboration not only underscores VinFast’s strong potential to capture a significant share of Indonesia’s booming electric vehicle market, but also demonstrates the confidence of renowned international enterprises, especially Middle Eastern investors, in VinFast’s vision and capabilities.

After successfully expanding into Asia and North America, VinFast now strategically enters the Middle East market. Using strategic partnerships and cutting-edge technology, the company aims to accelerate the adoption of electric vehicles in this dynamic region.

VinFast has officially launched its brand in the Middle East, in partnership with three leading car dealers. In collaboration with Al Tayer Motors, VinFast has opened its first dealership in the United Arab Emirates, strategically located in downtown Dubai. Spread over 1,000 square meters, this state-of-the-art facility features a contemporary and opulent design, seamlessly integrating a service workshop.

Perseverance pays off: VinFast’s year-end triumphs

To thrive in the dynamic automobile market, VinFast has adopted a multi-pronged approach, offering a diverse range of electric vehicles, including eight cars, one bus, nine motorcycles and one bicycle. This strategy, which caters to a wide range of consumer needs and budgets, has proven successful in the Vietnamese market, with VinFast taking first place in car deliveries in the first ten months of 2024.

A remarkable change has taken place in Vietnam’s car market, with electric vehicles now outselling petrol cars. This rapid transition is driven by the success of VinFast. This achievement, achieved just two years after VinFast’s full transition to electric vehicles, marks a significant milestone for the Vietnamese auto industry and highlights growing consumer demand for sustainable transportation options.

VinFast’s growth momentum continued unabated in November, with the company delivering more than 16,000 electric vehicles across all models. This record monthly delivery brings VinFast’s total domestic sales for 2024 to over 67,000 units, solidifying its leading position in Vietnam’s electric vehicle production.

The company has successfully disrupted the Vietnamese automotive market with a winning combination of innovative products and a compelling sales strategy. The introduction of the VF 3, a stylish and practical electric SUV at an attractive price, was a key factor in this success. The VF 3 has quickly become a popular choice for urban commuters, eager shoppers who eagerly anticipate their deliveries.

In addition, the VF 5 is proving to be a game changer, appealing to both individual and commercial customers. In particular, VinFast is witnessing a growing trend of traditional taxi operators transitioning to electric vehicles, driven by the significant economic advantages of low maintenance costs and stable electricity prices compared to fluctuating gasoline prices.

These successes demonstrate VinFast’s ability to create new market demand and drive the adoption of electric mobility in Vietnam.

As a pioneer of electric vehicles listed on Nasdaq, VinFast is strengthening its global reach. The company’s remarkable success in the Vietnamese market serves as a catalyst for further international expansion. VinFast’s strategic initiatives are yielding positive results, with September marking a record month for the company in the North American market.

VinFast’s commitment to green transformation extends beyond business results. The company has achieved global recognition, with its founder, Mr. Pham Nhat Vuong, being ranked among the 50 most powerful people in the global automotive industry by Motor Trend magazine and VinFast itself included in TIME magazine’s list of 100 most influential companies.

In the dynamic landscape of the global automotive industry, characterized by geopolitical changes, economic fluctuations and evolving consumer preferences, VinFast’s multi-market, multi-product strategy is proving to be a crucial factor in its success. This strategic approach allows the company to face challenges effectively and strengthen its leadership position in the green revolution./.

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