VinFast electric cars and motorbikes

Factors driving the establishment of the VinFast Electric Vehicle Project:

The reality of environmental pollution in Vietnam

Vietnam has been facing serious environmental pollution challenges, particularly air pollution in major cities such as Hanoi and Ho Chi Minh City. IQAir’s 2020 report sounded the alarm by ranking Vietnam among the top 15 most air-polluted countries in the world. The concentration of fine particulate matter PM2.5 in Vietnam was 5 times higher than the level recommended by the World Health Organization (WHO), posing a serious threat to public health. Transport has been identified as one of the main causes of pollution, as petrol- and diesel-powered vehicles still make up the majority and contribute up to 18% of total CO2 emissions nationwide.

The global clean technology trend and barriers for Vietnamese consumers

As the world undergoes a strong shift towards green energy, the electric vehicle market has emerged as an inevitable trend. It is forecast that by 2030, 25% of vehicles sold globally will be electric vehicles. However, the electric vehicle market in Vietnam is still young and faces many challenges. The lack of synchronised infrastructure, together with the high costs of producing and importing electric vehicles, are major barriers preventing electric vehicles from becoming more accessible to Vietnamese consumers.

The strong determination of the Government of Vietnam in implementing the Net Zero target

The Government of Vietnam has set a target of reducing greenhouse gas emissions by 9% by 2030 and achieving Net Zero by 2050. As a pioneering enterprise in Vietnam, VinFast is clearly aware of its responsibility in realising the greenhouse gas emissions reduction targets set by the Government. The VinFast Electric Vehicle Project is an expression of its commitment to accompanying the Government and the community in jointly creating a green and sustainable future for Vietnam.

A clear strategic direction from Vingroup

Since being established by Vingroup in 2017, VinFast has carried the mission of becoming a leading electric vehicle manufacturer, competing fairly with major global names. Beyond its business objectives, VinFast is also a symbol of Vietnam’s high-tech industrial sector, affirming the country’s position and capability on the international stage. Developing electric vehicles is VinFast’s own strategic direction, reflecting its long-term vision and responsibility in response to the environmental and social challenges facing Vietnam. The brand not only aims to create high-quality products, but also seeks to lead the promotion of green consumption trends and pioneer the global clean technology movement.

The VinFast Electric Vehicle Project focuses on addressing air pollution and dependence on fossil fuels in Vietnam’s transport sector. By developing advanced and accessible electric vehicle models, VinFast not only reduces emissions but also encourages consumers to shift towards environmentally friendly vehicles. This is highly significant not only from an environmental perspective, but also for sustainable development and promoting the greening of the economy'

The emergence of VinFast Electric Vehicles also helps change consumer awareness, guiding people towards the use of clean energy. With a widely covered charging station network and reasonably priced vehicle models, VinFast has created a strong shift in Vietnam’s electric vehicle market.

At the same time, the project demonstrates the sense of responsibility of a leading enterprise in realising the targets set by the Government, guiding Vietnam towards becoming a regional leader in the transition to clean energy.

VinFast has implemented a series of breakthrough innovations to address the core issues of air pollution and dependence on fossil fuels in the transport sector, while promoting community access to a green mobility culture.

Smart manufacturing plant

VinFast has built a smart factory that integrates highly automated technology, using artificial intelligence (AI) and Big Data to optimise the production process. This model is effective in saving energy and resources, and significantly reducing carbon emissions during production. As a result, VinFast substantially reduces negative environmental impacts, aligning with the goal of reducing CO2 emissions from transport.

Battery leasing model

VinFast’s battery leasing model was developed to help consumers reduce the upfront investment cost when purchasing an electric vehicle. Instead of buying both the vehicle and the battery, customers can lease the battery at a lower cost and receive maintenance support from VinFast. This policy has significantly reduced financial barriers for consumers, helping more households access electric vehicles more easily. This directly promotes the shift from petrol and diesel vehicles to electric vehicles, reducing CO2 emissions from transport and improving air quality.

Development of the charging station system

To support the use of electric vehicles, VinFast has developed a nationwide fast-charging station system, currently managed and operated by V-Green, with a planned network of more than 150,000 charging ports. This system ensures that electric vehicle users can easily recharge, increasing convenience and real-world usability. Vietnam’s vehicle-to-charging-port ratio is currently among the highest in the world, at around 5 vehicles per port. South Korea has the world’s highest ratio at 3 vehicles per port, while the global average is 11 vehicles per port, according to data from the International Energy Agency. VinFast’s extensive charging station network helps address the lack of charging infrastructure, encouraging consumers to switch vehicles and reducing CO2 emissions over the long term.

Outstanding after-sales policy

VinFast has established a new standard for after-sales service with a commitment to providing replacement parts within 24 hours. This is a breakthrough step, ensuring customers always receive fast and reliable service, and improving user satisfaction. Not only that, VinFast also provides a warranty policy of up to 10 years for its electric vehicle models, which is also one of the longest warranty policies in the automotive industry, giving customers absolute peace of mind. Its outstanding after-sales policy builds consumer confidence when switching to electric vehicles, helping promote the trend of using green vehicles in the market.

By implementing a series of breakthrough initiatives, VinFast Electric Vehicles contributes to establishing new standards for Vietnam’s high-tech industrial sector, with a commitment to delivering customers a complete and distinctive “green” experience. These continuous efforts have helped affirm VinFast’s pioneering position in the electric vehicle sector, while realising the vision of a green and sustainable transport future for Vietnam.

The VinFast Electric Vehicle Project is not only built on clear objectives, but is also strengthened by strong internal commitment from the company as well as support from the community. This is the solid foundation for VinFast to realise its vision in the future.

Objectives

Put Vietnam on the global electric vehicle map

Become one of the leading countries in electric vehicles in the region, with the capacity to export electric vehicles to international markets.

Strengthen the domestic market share and expand into international markets with smart electric car models

VinFast’s vehicle sales this year are expected to reach 80,000 units and are expected to increase to 200,000 units next year.

Complete the domestic and international distribution and after-sales service network

This includes optimising costs, applying modern technology, expanding distribution channels, and making use of local networks and the expertise of dealers. The target is to reach around 400 points of sale globally by the end of 2024, with sales through dealers making a significant contribution in the second half of 2024.

Move towards technology self-reliance and enhance research and development capacity, cooperation, and battery production, with a particular focus on developing the most advanced battery technologies

Implement the plan for 150,000 electric vehicle charging ports within the V-Green system, stretching across all 63 provinces and cities. This system is systematically planned with a maximum radius of 3.5 km in inner-city areas and a maximum distance of 50-60 km along expressways, national highways, provincial roads and district roads.

Vision

Become a smart electric vehicle brand, contributing strongly to the global electric vehicle revolution

Beyond popularising electric vehicles domestically, VinFast also aims to conquer the global market. With a long-term vision, VinFast is committed to creating a sustainable electric vehicle ecosystem, including vehicle manufacturing with advanced technology, developing a widely covered charging station network and providing dedicated after-sales service. All of these efforts are directed towards the shared goal of reducing carbon emissions and protecting the green planet.

Reshape the automotive industry in Vietnam and make Vietnam one of the leading electric vehicle manufacturing and consumption centres in Southeast Asia

The project not only creates a transformation in transport technology, but also contributes to the green energy transition, meeting the need to reduce greenhouse gas emissions and improve air quality in major urban areas.

Create positive changes for the community by providing clean means of transport, reducing air pollution and raising awareness of the benefits of green energy

The VinFast Electric Vehicle Project will help people access advanced mobility technology, while promoting the development of green and environmentally friendly communities. With a long-term vision, VinFast provides green, clean and safe mobility solutions, harmoniously combining smart services with outstanding experiences. More than improving quality of life, VinFast is committed to protecting the green planet for future generations.

Implementation process – Scope – Cost

With ambitious objectives directed towards a bright future in the electric vehicle industry, not only in Vietnam but also globally, VinFast has implemented the project according to a clear and systematic strategy across 3 phases.

Phase 1: Starting and building the foundation (2017 - 2019)

In 2017, in Cat Hai, Hai Phong, an area that had once been wild marshland, VinFast started construction of an automobile and electric motorbike manufacturing complex covering 335 hectares in just 21 months. This was the first step in realising the dream of a “Made in Vietnam” car. VinFast partnered with leading names in automobile manufacturing, mainly from the Federal Republic of Germany, to design and install modern machinery and equipment production lines. Applying Industry 4.0 technology with an automation rate of up to 90%, the VinFast factory is operated by a smart connection system through sensors connected via networks and cloud computing. The data collection and management system, enterprise planning system, product lifecycle management system and manufacturing execution system — important foundations for applying Industry 4.0 technology at the factory - are provided by two major industry leaders, Siemens and SAP. VinFast’s extraordinary journey is the result of relentless effort, breaking every limit by a deeply committed workforce.

In 2018, VinFast officially launched the two models Lux A2.0 and Lux SA2.0 at the Paris Motor Show, a prestigious event in the global automobile industry. The models were honoured by AUTOBEST, a leading European automotive organisation, as the “New Star”, affirming VinFast’s position on the international stage.

By June 2019, the VinFast automobile manufacturing complex officially began operations. After only 18 months, VinFast had produced and delivered 650 Fadil cars to the market, marking the rapid progress of the Vietnamese car manufacturer. In addition, VinFast also continuously expanded its electric motorbike product range, meeting the diverse needs of consumers.

Phase 2: Expanding and affirming position (2020 - 2021)

The launch of VinFast VF e34 marked an important milestone, opening a promising electric vehicle era for VinFast. Just 12 hours after sales opened, the model recorded 4,000 orders, and after only 9 months, the first VF e34 vehicles were delivered to customers.

In January 2022, VinFast continued to affirm its pioneering position by launching a diverse range of electric vehicle products covering all segments. The Vietnamese car manufacturer became a name written into the history of the global automobile industry by shifting 100% to electric vehicle production only 5 years after its establishment. The two electric models VF 8 and VF 9 continued to generate strong attention, with 24,000 orders within only 48 hours of opening for sale, demonstrating strong support from customers in Vietnam and overseas. VinFast also received many prestigious awards, affirming the quality and safety of electric vehicle products carrying a Vietnamese brand.

Phase 3: Sustainable development and reaching the world stage (2022 - present)

Only 10 months after its launch, the VF 8 officially entered commercial operation, ready for its journey to conquer roads across five continents. The Vietnamese car manufacturer has continuously made its mark with rapid progress: partnering with leading names, building a factory in the United States, and opening sales and after-sales service centres in the United States, Canada, Germany and the Netherlands in record time. VinFast is gradually realising its goal of becoming a global automobile brand, conquering the North American and European markets. This impressive journey has brought VinFast many prestigious awards, affirming the brand’s position on the international stage.

The year 2023 marked a historic turning point when VinFast was officially listed on the Nasdaq stock exchange, becoming a global public company. VinFast continued to expand its product range and accelerate vehicle deliveries to customers.

In September 2024, VinFast proudly received a series of prestigious awards: the VF 6 won “Xe Nang Luong Xanh Tien Phong” (Pioneering Green Energy Vehicle) and “Xe Quoc Dan Cho Nguoi Moi” (People’s Car for New Drivers); the VF 7 was honoured with “Dot Pha Thiet Ke Tren O to Hien Dai” (Breakthrough Design in Modern Automobiles) and “Xe Dan Dau Xu Huong” (Trend-leading Vehicle) at the Better Choice Awards 2024. The VinFast VF 8 also excellently received 5 awards at the ASEAN NCAP Grand Prix Awards: Best Child Occupant Protection, Best Safety Assist, Best Car, Best Motorcyclist Safety and Best SUV. In addition, other models such as the VF 3, VF 5, VF e34 and VF 9 were also honoured at many other prestigious awards.

In the first 6 months of 2024:

• 22,348 electric cars were delivered, representing growth of 101% compared with the same period in 2023
• 20,913 electric motorbikes were sold, representing growth of 5% compared with the same period in 2023

Not only focusing on the domestic market, VinFast is accelerating its global expansion strategy, targeting potential markets such as the United States and Europe in order to strengthen its position in the electric vehicle industry. Alongside its business objectives, the VinFast Electric Vehicle Project also brings significant value to the community, contributing to the promotion of green transport and sustainable development.

Community - Consumers

The emergence of VinFast helps people easily access smart, safe and environmentally friendly electric vehicle models, particularly in the areas where the company operates. VinFast not only attracts people who are interested in the environment, but is also an ideal choice for those who wish to switch to electric vehicles at a reasonable cost. The project contributes to reducing CO2 emissions and protecting public health by encouraging the use of clean energy. The increase in awareness and the shift in people’s transport habits are evidence of the project’s positive impact.

Vietnam’s electric vehicle industry

VinFast has become Vietnam’s first electric vehicle manufacturer, laying a strong foundation for the country’s young electric vehicle industry. The emergence and strong development of VinFast not only affirms Vietnam’s position on the global electric vehicle manufacturing map, but also creates momentum to promote competition and development across the entire ecosystem, from component and spare parts manufacturers to related suppliers.

Contribution to the Government’s Net Zero target

VinFast has reduced thousands of tonnes of CO2 through its electric vehicle models, while also building an ecosystem that includes charging stations and support services, contributing to Vietnam’s efforts to reduce greenhouse gas emissions and supporting the Government’s Net Zero target. At the same time, the project also promotes the trend of using clean energy in the transport sector, helping Vietnam move closer to its sustainable development goals.

In the first half of 2024, electric vehicle sales recorded notable growth. Specifically, 20,913 electric motorbikes were sold to the market, reflecting a strong shift towards sustainable mobility options. At the same time, electric car sales reached 22,348 units, showing the growing level of consumer acceptance of electric vehicle models. These figures demonstrate the clear expansion of the electric vehicle market during H1 2024.

The VinFast Electric Vehicle Project has strong potential to scale the green mobility model and promote the use of green vehicles, thanks to a series of strategic factors.

Self-scaling potential

Strong ecosystem

VinFast is gradually realising its vision of a green future for the transport sector, not only by developing modern electric vehicle models, but also by creating a comprehensive ecosystem that supports the sustainable development of these vehicles. A key highlight in VinFast’s strategy is its charging station system, which provides broad coverage across Vietnam. With a plan to deploy up to 150,000 charging ports, VinFast is gradually removing the biggest barrier to switching from petrol vehicles to electric vehicles: concerns about driving range and access to energy sources. This encourages users to confidently make the switch and experience a greener lifestyle.

Global greening trend

As the world increasingly shifts towards clean energy, VinFast, with its strategic vision, has quickly captured this green wave and become a pioneer in driving the electric vehicle market in Vietnam. Demand for green and sustainable mobility continues to increase, opening up significant potential for the future development of electric vehicles. VinFast’s pioneering development of the electric vehicle ecosystem not only meets domestic demand, but also creates conditions to scale this model globally, especially in markets where electric vehicles are growing rapidly.

Potential to encourage partner businesses in the same industry

VinFast does not only focus on developing advanced electric vehicle models, but also extends further through its pioneering role, creating a strong spillover effect in shaping the electric vehicle industry in Vietnam. VinFast’s effective operating model has the potential to create positive impacts across the entire value chain, from improving technical quality and promoting professionalisation to elevating the whole industry and creating development momentum for domestic partners.

Promoting domestic partners and distributors

With a broad distribution system and cooperation with domestic suppliers, VinFast has helped these businesses improve their competitiveness. Cooperation with Vietnamese manufacturers and distributors has encouraged them to reach international standards, from component manufacturing and supply systems to technical services. This not only helps develop the domestic automotive industry, but also creates conditions for Vietnamese businesses to broaden their vision towards international markets.

International standards

VinFast has set high technical standards and a sustainable operating system, serving as an example for other businesses in the automotive industry. The standards for technology, environment and after-sales service set by VinFast will serve as a guide for other organisations in their transition towards sustainable development. At the same time, VinFast also encourages partners to pursue green and environmentally friendly models, thereby spreading positive impact across the industry.

Building a world-class national brand

VinFast has succeeded in building a Vietnamese brand with global standing, becoming a source of pride and motivation for other Vietnamese businesses in the industrial and high-tech sectors. VinFast is not only a symbol of progress in the electric vehicle industry, but also inspires other businesses to continue striving and create national brands that can compete internationally.

Promoting domestic production

VinFast has encouraged Vietnamese businesses to participate in the supply chain and improve their capacity to produce components that meet international standards. The group is committed to purchasing a portion of domestically produced components, creating conditions for small and medium-sized enterprises to participate in the value chain.