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VinFast

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(Redirected from Vinfast)

VinFast Auto Ltd.
Company typePublic
Nasdaq: VFS
IndustryAutomotive
FoundedJune 2017; 7 years ago (2017-06)
FounderPham Nhat Vuong
HeadquartersĐình Vũ – Cát Hải Economic Zone, Haiphong, Vietnam[1]
Area served
Worldwide
Key people
ProductsAutomobiles
Motorcycles
Commercial vehicles[2]
RevenueIncrease US$1.150 billion (2023)[3]
Negative increase US$−1.667 billion (2023)
Negative increase US$−2.366 billion (2023)
Total assetsIncrease US$5.487 billion (2023)
Number of employees
13,953 (2023)
ParentVingroup
Websitevinfast.com

VinFast Auto Ltd. is a Vietnamese multinational automotive company[4] founded by Vingroup, one of the largest private conglomerates in Vietnam that was founded by Pham Nhat Vuong.[5][6][7]

Established in 2017 in Haiphong, it is the first Vietnamese car brand to expand into global markets as well as the first to expand into producing electric vehicles (EV) such as electric cars and electric scooters.[8] Vinfast received "The Rising Star” award from Autobest in 2022 and named among world's 100 most influential companies in 2024 by Time Magazine's.[9][10]

History

[edit]

VinFast was founded in 2017 by Vingroup.[11]

VinFast broke ground in September 2017 on an 828-acre (3,350,000 m2) facility in an industrial park located on Cat Hai Island near the city of Hai Phong. The factory with paint shop, press shop, assembly shop and engine shop was built in just 21 months.[12]

2018 investment was US$1.5 billion in the first phase of a program to make cars and electric motorbikes at a greenfield factory. The company claimed that it has aggregated talent from multiple established companies and is sourcing European design, engineering, and production technology partners. The first two vehicles that were shown at Paris motorshow in the fall of 2018 are the LUX A2.0 and the LUX SA2.0, designed by Pininfarina and Italdesign Giugiaro. [13]

Previously, In July 2017, all the designs of Vinfast's first cars were posted on the website and Vinfast asked Vietnamese consumers to vote for which design they liked the most. There were more than 60,000 votes for 20 sketches from four of the world's best auto design studios - Italdesign Giugiaro, Pinifarina, Torino Design and Zagato. Lux A2.0 and Lux SA2.0 are the results of the vote. [14]

In 2018 General Motors announced a partnership between Chevrolet and VinFast. VinFast will have exclusive rights to distribute Chevys in Vietnam and will take ownership of the existing General Motors (GM Korea) factory in Hanoi (VIDAMCO). That factory will then build a GM-licensed "all-new global small car" to be sold under the VinFast name.[15]

VinFast signed two contracts with Siemens Vietnam, a unit of Siemens AG, for the supply of technology and components to manufacture electric buses in Southeast Asian countries in August 2018.[16] On 21 March 2019, it sent the first batch of 155 VinFast Lux cars, 113 completed vehicles and 42 semi-finished cars, abroad in Europe, Asia, Australia and Africa to conduct field tests for quality testing and to qualify for a 5-star ASEAN NCAP rating.[17]

The company was to have been the title sponsor of the inaugural edition of the Formula One Vietnamese Grand Prix, which was slated to take place during the 2020 season - the race was subsequently cancelled due to COVID-19 pandemic.[18] In Q1 2020, VinFast was the fifth best-selling car brand in Vietnam.[19]

On 25 February 2020, it was reported that VinFast vehicles were spotted in South Africa for field tests at Kakamas in the Northern Cape Province and in Cape Town.[20] On September 20, the company announced a loss of VND 6.6 trillion ($284 million) in the first half of the year.[21]

In December 2020, VinFast released preliminary images of a pickup truck being developed weeks after the Lang Lang testing centre was purchased.[22] Other vehicles in development included a three-door hatchback, two different coupe-type SUVs, a small SUV, a four-door coupe, a couple of people movers and electric scooters.[22] According to the Intellectual Property Office of Vietnam, the patents for these vehicles are set to expire on 14 January 2024.[23]

On July 27, 2021, parent Vingroup announced that Michael Lohscheller, the CEO of Opel, had been appointed CEO of VinFast Global.[24] Five months later, on December 27, it was announced that Lohscheller had resigned the position.[25]

On 30 September 2021, VinFast reported that Cerence software will be used for its electric vehicles as an intelligence voice assistant.[26] On 25 December, it delivered the first batch of 100 VF e34 electric crossovers to Vietnamese customers at VinFast's manufacturing complex in Hai Phong. The VF e34 marks VinFast's first EV model and the first ever electric vehicle to be manufactured and sold in Vietnam.[27]

According to Reuters, Vinfast had only made 7,400 car sales in 2022, all of which occurred in Vietnam.[28] The company however has set itself a target of 50,000 car sales globally for 2023.[29] They missed the goal but delivered close to 35,000 electric cars in 2023.[30] Their Chairwoman, Le Thi Thu Thuy, projected sales of 40,000 - 50,000 vehicles in 2024.[31]

On 6 January 2022, reports emerged that VinFast plans to build new EV plants in Germany and the United States as part of the company's plans to retire production of gas-powered vehicles and transition fully to EVs by late 2022.[32]

In November 2024, Vingroup JSC, the parent company for VinFast, pledged to loan VinFast as much as $1.38 billion to help the company break even by the end of 2026.[33] Pham Nhat Vuong also pledged an additional $1.97 billion, according to a company statement.[34]

Move to Singapore, efforts to go public

[edit]

VinFast appeared to making its first efforts to become a public company in early 2021. Sources told Reuters that the automaker planned to merge with a special-purpose acquisition company (SPAC) in the United States.[35] On 28 May 2021, the plan was put on hold due to SPAC scrutiny.[36]

VinFast announced on 7 April 2022 that it planned an initial public offering (IPO) through a Singapore-based holding company.[37] A few weeks later on 24 May 2022, Vinfast announced that it would be moving its headquarters to Singapore, with the company stating that "We feel that Singapore is a jurisdiction that will give investors more confidence."[38] Singapore will be its legal and financial headquarters while Vietnam remains its operational headquarters. However, at the same time, the company said it would again put its plans to go public on hold.[39]

VinFast announced in July 2023 that it was planning to merge with a SPAC operated by Black Spade Capital. The move allows the company to avoid the process of issuing an IPO. The transaction, valued at $23 billion, was completed on 14 August 2023, and the company finally went public on the US-based Nasdaq exchange on 15 August 2023.[40][41][42][43]

Overseas operations

[edit]
A VinFast dealership in Colma, California, United States

On 31 July 2018, VinFast GmbH was established in Frankfurt, Germany.[44] The office is in charge of distributing auto parts and other related services.[44] On the same day it was announced that VinFast would set up branch offices in Shanghai, China, and Seoul, South Korea.[44]

In February 2020, ex-Holden engineers were being recruited by VinFast in Port Melbourne, making Australia the second overseas country to have a branch after the company moved in December 2019.[45][46] The branch, known as VinFast Engineering Australia, is staffed by ex-Ford, Holden and Toyota employees[47] and opened on 12 June 2020.[48] On 6 May 2021, the Port Melbourne office was announced to be closed due to the COVID-19 pandemic temporarily.[49] The Lang Lang test track appeared to be unaffected by the closure,[50] but on October that year, VinFast announced the sale of the proving ground, although it has not found a buyer as of 2024.[51]

On 29 March 2022, Vinfast announced it would locate its first North American auto plant in Chatham County, North Carolina.[52] The auto manufacturer will create 7,500 jobs.[53] In July 2023, the company broke ground at its electric vehicle manufacturing site, located within the Triangle Innovation Point in Chatham County, North Carolina.[54]

Export plans

[edit]

In April 2019, VinFast reported that the Lux SA2.0 and Sedan Lux A2.0 were the first two models introduced to Russia at the end of 2018.[55] According to Auto.Vesti, the models are expected to be sold throughout Russia by the end of 2020.[55] Vuong mentioned that electric vehicles will be sold in the country after 2021.[56]

In December 2019, it was announced that VinFast had plans to market electric vehicles to the United States by 2021.[57] Exactly one year later, the company did not mention dates when reporting that it intended to sell its vehicles in Australia.[22]

On 22 January 2021, VinFast unveiled three finalized designs of their electric SUV models VF31, VF32, VF33 intended for the US, Canada, Germany, France and the Netherlands export markets,[35] of which, VF32 and VF33 are available in both gasoline and electric engine versions. These vehicles are stated to meet the NHTSA, Euro NCAP and ASEAN NCAP 5 star-ratings and feature self-driving capabilities thanks to a suite of electronic driver-assist features.[58]

In July 2021, VinFast appointed Michael Lohscheller, who previously worked as an executive of Volkswagen America and as CEO of Opel, to lead its overseas operations.[59] The VF31 was later rebranded as VF e34 and became available in Europe in November.[60]

On 16 November 2022, the first VinFast showroom opened in Toronto at the Yorkdale Shopping Centre.[61] In the same year, the company had chosen Santa Monica as one of two locations to promote its vehicles in California.[39]

VinFast plans to expand in seven more markets in Asia, including Indonesia, where the company aims to start deliveries from 2024.[62] In January 2024, VinFast announced plans to enter the Philippine market.[63]

In the media

[edit]

In August 2023, and in tandem with their NASDAQ listing, VinFast launched an ad campaign for their VF 8 and US debut featuring Joey Lawrence, reviving his catchphrase, "Whoa!", from the hit TV series Blossom on NBC that amassed a million views on YouTube in under a week,[64] produced by production company Anaheim Studios.[65]

Four million views[66] and four months later, VinFast released a second installment of the Whoa commercial,[67] in which Joey Lawrence reprised his starring role, in December of the same year.[68][69]

Etymology

[edit]

The name VinFast is an abbreviation of Vietnamese words:[11]

  • Việt Nam (Vietnam)
  • Phong cách (Style, spelled Ph as F)
  • An toàn (Safety)
  • Sáng tạo (Creativity)
  • Tiên phong (Pioneer)

Products

[edit]

Automobiles

[edit]

VinFast announced their first two models, the LUX A2.0 and the LUX SA2.0, at the 2018 Paris Motor Show. Both models are based on previous generation BMW products with various changes and enhancements, including the extensive redesign of the chassis to meet future international safety standards. Both will come in rear-wheel drive and all wheel drive, and both will be powered by the licensed BMW N20 turbocharged petrol engine in 175 bhp and 227 bhp options. Comprehensive reliability and safety testings have been completed. Production of both models started in 2019.[70][71]

In January 2022, Vinfast announced it will put an end to the production of its internal combustion engine (ICE) vehicles lineup by the end of 2022. The company will instead focus research and development efforts on battery electric vehicles.[72]

VF8 is the first American market model for the company. In October 2024, VinFast also launched its brand in Dubai.[73] Collectively, in the first 48 hours of being able to sell electric automobiles,[when?] more than 24,000 orders[clarification needed] were placed, with 15,237 placed for the VF8 and 9,071 for the VF9.[74]

Internal combustion engine vehicles

[edit]
  • Vinfast Lux A2.0
    Vinfast Lux A2.0
  • Vinfast Lux SA2.0
    Vinfast Lux SA2.0
  • VinFast President
    VinFast President
  • VinFast Fadil
    VinFast Fadil

Battery electric automobiles

[edit]
  • VinFast VF e34 - C-segment (compact) SUV for the Vietnam market. The company's first EV offering. Deliveries began in December 2021.
  • VinFast VF 3 - Mini SUV designed for the Vietnam market. Two-door vehicle with seating for five. Deliveries began in August 2024. [78]
  • VinFast VF 5 - A-segment (city car) SUV for the Vietnam market. Deliveries began in 2023.
  • VinFast VF 6 - B-segment (sub-compact) SUV for the global market. Deliveries expected to begin in 2023.
  • VinFast VF 7 - C-segment (compact) SUV for the global market. Deliveries began in March 2024. [79]
  • VinFast VF 8 (formerly known as VF32 and VF e35) – D-segment (mid-size) SUV for the global market. Deliveries began in 2022.
  • VinFast VF 9 (formerly known as VF33 and VF e36) – E-segment (full-size) SUV for the global market. Deliveries began in 2023.
  • Vinfast VF 3
    Vinfast VF 3
  • Vinfast VF 5
    Vinfast VF 5
  • VinFast VF 6
    VinFast VF 6
  • VinFast VF 7
    VinFast VF 7
  • VinFast VF 8
    VinFast VF 8
  • VinFast VF 9
    VinFast VF 9

Although other Electric Vehicle companies in the past offered some sort of infinite-mile warranty[80][81] but currently, Vinfast still offers 8 to 10 year infinite-mile battery warranty (whichever comes first: the infinite miles or the years. Years depends on the models).[82]


ADAS

In 2022, VinFast has a vision of achieving SAE Level 2+ and incrementally to Level 3, then eventually Level 4. With the ProAI high-performance computer, unlike others who rely on pre-mapping (like Waymo[83]), it will intend to solely rely on its sensor suite.[84]

Concepts
[edit]

Electric scooters

[edit]

VinFast has planned to produce seven different electric motorcycle models by 2019. It has signed agreements with state owned petrol distributor PV Oil to have charging stations built at existing gas stations.[86]

  • VinFast Klara – VinFast's first electric motorcycle model launched in November 2018. It has a range of 80 kilometres (50 mi) and a maximum speed of 50 kilometres per hour (31 mph). VinFast signed an agreement with Bosch-Vietnam, a division of Bosch, for the supply of components.[86] The batteries are supplied by a joint venture with LG Chem.[87] Two versions of the Klara are sold, featuring lead acid and lithium-ion batteries respectively. The Klara features 3G and bluetooth connectivity to allow remote lock and unlock and tracking.[88]
  • VinFast Ludo
  • VinFast Impes
  • VinFast Klara S
  • VinFast Theon – equipped with a mid-engine and chain transmission system with a power of up to 7,100 W. It can reach a power of 9,000 W equivalent to 12 horsepower and a maximum torque of 22.27 N⋅m, accelerate from 0 to 50 km per hour in just six seconds and reach a maximum speed of 90 km/h.
  • VinFast Feliz
  • VinFast Tempest
  • VinFast Vento
  • VinFast Evo200
  • VinFast Klara
    VinFast Klara
  • VinFast Ludo
    VinFast Ludo
  • VinFast Impes
    VinFast Impes
  • VinFast Klara S
    VinFast Klara S
  • VinFast Theon
    VinFast Theon
  • VinFast Klara S
    VinFast Klara S
  • VinFast Tempest
    VinFast Tempest
  • VinFast Vento
    VinFast Vento
  • VinFast Evo200
    VinFast Evo200

Electric transit buses

[edit]

VinFast produces low-floor electric city buses for sister company VinBus, a privately operated non-profit bus route network service established by Vingroup in 2019. The bus is powered by a 281 kWh battery pack which gives the bus up to 260 km (160 mi) of range. Using the VinBus-designated 150 kWh DC fast-charging stations provided by StarCharge, the battery can be charged within ~2 hours.[89][90]

  • VinFast VinBus
    VinFast VinBus

Production facilities

[edit]

VinFast operates a 335 hectares (1.29 sq mi) greenfield factory at Cat Hai Island, Hai Phong. The factory produces cars and motorbikes and parts for both of them.[91] In 2017, VinFast also acquired GM Vietnam's Hanoi factory (VIDAMCO).[92]

In September 2020, VinFast purchased the Lang Lang Proving Ground in Australia from General Motors.[93] Vinfast purchased the former Holden proving ground for $30 million and settled on the purchase on 2 November.[94] In October 2021, VinFast disbanded its local engineering operations and put the Lang Lang Proving Ground test track up for sale.[95]

VinFast will build a plant in Indonesia, targeting production in 2025 with an output of 30,000 to 50,000 units each year.[96]

Controversy and reception

[edit]

In May 2021, VinFast reported one of its customers, Tran Van Hoang, a Vietnamese YouTuber, to the police over comments that the customer made on his YouTube video about the quality of his VinFast Lux A2.0 car. VinFast claimed that the video contained "untrue content" that "affected the reputation" of the company to increase views and interactions for his Youtube channel.[97] On the video, Hoang complained about faults in the tire pressure sensor, the windshield wipers, the wireless phone charger, squeaking doors, and he lied about the number of times he went to the dealership for repairs.[98] Hoang said he has hired lawyers and is ready to confront Vinfast in the lawsuit. But then he said: '"The two sides should meet and share to have a common voice because the incident that happened was not expected by either side".[99]

In the U.S., the VinFast VF 8 has received negative reception after press cars became available to automotive journalists. A number of well-established and widely followed automotive journalists and car critics have given the VF8 poor reviews.[100][101][102][103][104] In a May 2023 review, Motor Trend said the vehicle is "nowhere near ready for the customer deliveries" due to many software glitches.[105] Car and Driver said the vehicle has "immediately obvious flaws" that would make it difficult for VinFast to find customers.[106]

In Vietnam, on May 15, 2024, after Vinfast opened deposits for VF3 cars, there were 27,649 orders after 66 hours, setting a new record in Vietnam.[107]

On May 21, 2024, US Federal regulators have begun an investigation into the crash of a VinFast VF 8, resulting in the deaths of a family of four from Pleasanton, California. "The vehicle owner had complained about the performance of the SUV's automated steering, although it's not clear if that was a factor in the crash."[108]

See also

[edit]

References

[edit]
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