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Vietnam’s richest man is spending US$2 billion to sell electric cars to Americans

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The billionaire behind six-month-old Vietnamese auto start-up VinFast plans a feat even Toyota and Hyundai couldn’t pull off during their early days: sell a car in the US.

Pham Nhat Vuong, the Southeast Asian country’s richest man and now in charge of the new automaker, is so intent on exporting electric vehicles to the lucrative American market in 2021 that he’s ploughing as much as US$2 billion of his own fortune to reach that goal. His cash would account for half the capital investment of VinFast, which began delivering cars to Vietnamese consumers with BMW-licensed engines earlier this year and aims to expand into electric vehicles.

“Our ultimate goal is to create an international brand,” the 51-year-old tycoon said in an interview at the Hanoi headquarters of the car company’s parent Vingroup JSC, which Vuong founded and holds the title of chairman. “It will be a very difficult road and we will have to put in a lot of effort. But there’s only one road ahead.”

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The home-grown cars made under Vuong’s sprawling real estate-to-hospitals conglomerate faces an uphill battle to succeed overseas: carmakers such as India’s Tata Motors and Malaysia’s Proton struggled to win over consumers away from their home turf. Even in Vietnam, VinFast has formidable competition from established foreign players such as Toyota, Ford and Hyundai.

VinFast follows a long list of Chinese carmakers that have also had ambitions to sell vehicles in the US going back more than a decade. Though the plans have yet to come to fruition, Guangzhou, Zotye and others have set up local sales units and research-and-development operations to show just how serious they are. Some Chinese brands have also exhibited at American auto shows in recent years.

The tycoon, whose net worth is US$9.1 billion, according to the Bloomberg Billionaires Index, is undaunted. He sold some of his shares in Vingroup last year and plans to sell as much as 10 per cent more to raise funds for the ambitious project. He owns 49 per cent of VinFast, while the parent, Vingroup, holds 51 per cent.

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Cars at the assembly plant of VinFast, Vietnam’s first home-grown manufacturer. Photo: AFP


The automaker won’t be profitable for as many as five years, said Vuong, adding the local market is “too small” and overseas sales are key to becoming profitable. Vuong directly owns 26 per cent of Vingroup, according to Bloomberg data. Vietnam Investment Group JSC, in which Vuong has about a 92 per cent stake, holds 31.6 per cent of Vingroup.

And VinFast will have to overcome an even more daunting task of winning over demanding consumers in the US and other developed markets, where emissions and crash standards are stringent.

To many international friends, Vietnam is still a poor, backward country

Pham Nhat Vuong
Adding to these challenges is successfully manufacturing and selling electric vehicles. Many Chinese start-ups, backed by billions of dollars in funding, bet on the prospects for EVs in the world’s biggest auto market, but few are making money. BAIC BluePark, China’s biggest maker of pure electric cars, forecasts a 2019 loss. Unprofitable NIO, which is traded in New York, has struggled to assuage concerns that it’s running short on cash amid sputtering EV demand.

VinFast’s first EV won’t roll off its assembly line until late next year, but Vuong said he plans to export those vehicles to the US, Europe and Russia in 2021.

VinFast must clear several hurdles to compete outside Vietnam, said Michael Dunne, chief executive officer of automotive consultant ZoZo Go, which specialises in the Asian market.

“It will be some time before the company is ready to compete in the US – still the world’s toughest market,” he said. “You need a solid brand name.”

Many consumers prefer a second-hand Honda or Toyota vehicle over a new car with an unfamiliar brand name, Dunne said. The Vietnamese automaker will need to produce at least 100,000 vehicles a year to be cost competitive, develop a global brand and establish a parts-and-services network, he said. Still, VinFast has an opportunity to crack smaller Southeast Asian markets, Dunne added.

VinFast, which operates a 335-hectare factory in the northern port city of Haiphong, is selling its first line of vehicles – a hatchback, sedan and SUV – at below cost. The hatchback retails for the equivalent of US$17,000, while the four-cylinder sedan goes for US$47,400 and its SUV is offered at US$60,400. The company targets production of as many as 500,000 vehicles a year by 2025. The carmarker also makes electric scooters.



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Pham Nhat Vuong, Vietnam’s richest man. Photo: Facebook


In the next few years, Vingroup will have to spend “many trillions of dong per year” to cover losses for VinFast, estimated at as much as 18 trillion dong (US$777 million) annually, Vuong said. Those losses include financing and depreciation, and as much as 7 trillion dong each year to absorb the hit of selling cars below cost, he added.

Vingroup will divest stakes in other units to fund VinFast while other subsidiaries have been ordered to reduce costs, Vuong said, without providing details. VinFast will also seek additional loans, in addition to about US$1.95 billion of international loans it has already raised. Vuong also plans to list VinFast on a Vietnamese exchange and possibly overseas, he said, without elaborating.

“We have the desire to build a Vietnamese brand that has a world-class reputation,” he said. “Our biggest challenge is that Vietnamese products do not have an international brand. To many international friends, Vietnam is still a poor, backward country. We will have to find a way to market and prove our products represent a dynamic and developing Vietnam that has reached the highest standards of the world.”


https://amp.scmp.com/news/asia/sout...ichest-man-spending-us2-billion-sell-electric
 
If we can sell cars to the US then $10,000 per capita is insight, surpassing Indonesia.

@Indos
 
If we can sell cars to the US then $10,000 per capita is insight, surpassing Indonesia.

@Indos

Well, it will be not easy but you have a dream and a company to realize that dream, while in Indonesia I think it will be difficult to launch national car project with its own brand since it need to compete with Japanese cars that have already had factory here. On the other hand Indonesian pride is in aerospace sector, our dream is that some day PT DI can enter passenger jet aircraft like it did in 1995 (but failed) and compete with Boeing and Airbus.

My advice for Vietnamese is that I hope they dont forget on their afterlife while reaching this worldly target @Viet

Here is a good website to study Islam:

https://www.islamreligion.com/
 
Well, it will be not easy but you have a dream and a company to realize that dream, while in Indonesia I think it will be difficult to launch national car project with its own brand since it need to compete with Japanese cars that have already had factory here. On the other hand Indonesian pride is in aerospace sector, our dream is that some day PT DI can enter passenger jet aircraft like it did in 1995 (but failed) and compete with Boeing and Airbus.

My advice for Vietnamese is that I hope they dont forget on their afterlife while reaching this worldly target @Viet

Here is a good website to study Islam:

https://www.islamreligion.com/
Afterlife? Let’s postpone it.
I think we can make a deal:
You buy our cars, we buy your aircraft :D
 
Afterlife? Let’s postpone it.
I think we can make a deal:
You buy our cars, we buy your aircraft :D
LOL vinfast isn't even considered a real car company by most. The retard just saying that to get some publicity he's not going to actually sell 10k cars to the US.

FYI in car productions you guys are even below malaysia.
Production volume in thousand units

Thailand 2,167.69
Indonesia 1,343.71
Malaysia 564.97
Vietnam 200.44
Philippines 79.76
Myanmar. 12.29

[emoji767] Statista 2019
 
With the current battery technology, EVs are best for city use, not for cross country trips, especially for a country as large as the US.

https://insideevs.com/news/343523/this-tesla-mom-shares-her-cross-country-road-trip-experiences/
In fact, Van Ee admits that she and Abbey occasionally sleep at Supercharger sites...

Personally, I have taken many cross country trips in continental US (CONUS) and when I say cross country, I do mean spanning over several states and over at least two days of car driving or motorcycle riding. In the US, most states have the geographical sizes of most countries for the rest of the world, so most foreigners do not have any idea how large is the US.

Over 20 yrs ago, my father passed away in Florida while I was in Idaho. I got the news on New Year's Eve and could not get a flight due to the holiday season of Christmas and New Year. So in 2.5 days, I drove from Idaho, thru a snowstorm in Colorado, and to Florida. That is 2600 miles or 4100 km. And to think am going to sleep overnight while waiting for my car's battery to charge up?

It takes about five minutes to fill up the fuel tank of a large SUV and am on the way again. I cannot afford to wait even one hr to charge my battery. I do not want to afford that time. I have better and more important things to do, like maybe for business or goobermint? So to wait even 15 minutes to charge up a battery is already unacceptable.

EVs are good for the cities, for now.
 
Which one of the below makes is Vinfast brand?

November 2019 sales, YoY (Year on Year) and January to November 2019 Total Sales.
Screenshot (1176).png


Here it is, source: VAMA (Vietnam Automobile Manufacturers Association)
Screenshot (1177).png
 
Last edited:
Which one of the blow makes is Vinfast brand?

November 2019 sales, YoY (Year on Year) and January to November 2019 Total Sales.
View attachment 593594

Here it is, source: VAMA (Vietnam Automobile Manufacturers Association)
View attachment 593595
Let’s wait more a bit
VF sells cars since when? 3 months if I am not mistaken.

As for electrics, why not? It’s worth a try. Vinfast electric car will start by $13,000, much cheaper alternative than Tesla that is priced by $30,000.

by Italdesign




vinfast-reveals-petrol-and-electric-hatchback-designs.jpg
 
Vinfast (non chevrolet) mid-October 2019 has just applied to join Vama. In early 2020, Vinfast sales data (non chevrolet) will be updated on Vama.
 
Vinfast (non chevrolet) mid-October 2019 has just applied to join Vama. In early 2020, Vinfast sales data (non chevrolet) will be updated on Vama.
Exact
Wait and see
Both VF top models won asean safety 5 star ratings.
The customers in the US are safe when driving.


vinfast-lux-sa-2-asean-ncap-safety-rating-1575450727.jpg


vinfast-lux-a-2-asean-ncap-safety-rating-1575450727.jpg
 

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