VinFast, a Vietnamese electric vehicle (EV) manufacturer, has raised eyebrows due to its sales distribution. Reports indicate that over half of VinFast’s electric vehicles sold this year, approximately 7,100 units out of 11,300, were purchased by Green and Smart Mobility (GSM), a Vietnamese taxi company. GSM is under the umbrella of Vingroup, the parent company of VinFast. This data was disclosed in VinFast’s filings to the US Securities and Exchange Commission in July and September.
VinFast made headlines when its stock price soared dramatically after its listing through a special purpose acquisition company (SPAC) in the previous month. Despite having sold only 24,000 vehicles in the entire previous year, at one point in September, the company’s market capitalization reached a staggering $200 billion. This valuation briefly placed VinFast among the world’s most valuable automakers, surpassing established giants like Volkswagen, Ford, and General Motors, despite the latter’s significantly larger sales volumes.
VinFast, a Vietnamese electric vehicle manufacturer, has the third-highest market value globally among automakers, behind Toyota and Tesla.
Established in 2017, VinFast began operating electric vehicles in 2022. There are hopes for future growth even if it posted a financial loss in 2022 and its electric vehicle operations are not yet profitable. The business intends to build a facility in North Carolina.
VinFast, the Vietnamese electric vehicle (EV) manufacturer, witnessed a surge in its shares during its Nasdaq debut on Tuesday, riding the wave of its recent $23 billion backdoor listing. This strategic move paves the way for VinFast to potentially secure investments from global stakeholders within the next 18 months.
The company’s stock made a soaring entrance at $22 (RM101) per share, surpassing the initial $10 (RM46) per share valuation set in collaboration with VinFast’s SPAC partner, Black Spade Acquisition. This upward trajectory continued throughout the trading session, culminating in a closing price of $37.06 (RM171.57) per share. Consequently, VinFast’s market capitalisation soared to $85 billion, eclipsing the market values of automotive giants like Ford at $48 billion and General Motors at $46 billion.
Even though VinFast, a Vietnamese automotive manufacturer, continues to suffer losses, it is still on track to go public in the United States before the year is through.
In the first quarter of 2023, VinFast’s net loss increased to $599 million (RM2.7 billion), according to a recent regulatory filing in the U.S. These losses occurred when manufacturing was increased, factories were built, and expenses for marketing, sales, and maintenance were incurred. VinFast may have the financial support of Pham Nhat Vuong, the wealthiest man in Vietnam, but it still needs to develop into a successful enterprise.
In Vietnam, a country where Chinese rivals are swarming even as motorbikes continue to control the roads, VinFast has unveiled its cheapest electric car yet, a $23,000 (RM102k) VF 5 model for sale.
Vingroup’s electric vehicle division stated late on Friday that it is “targeting the broadest range of consumers” with the VF 5 Plus SUV, which costs around one-third as much as the company’s higher-end EVs. VinFast’s newest SUV delivers 134 hp maximum power and 135 Nm of torque.
America has always had an attractive car market which was once the largest in the world. Though overtaken by China in 2009, the US market is still huge and has averaged 17 million units annually over the past few years. Many brands are present in the market and competition is tough, besides the fact that emission and safety regulations are also stringent.
Nevertheless, Vietnam’s Vinfast intends to enter the market and its ambitious plans are not only to sell SUVs there but also make them in the country. After looking at incentives offered by various states, it settled on North Carolina to build its factory with an initial investment of US$2 billion. It is the state’s first vehicle manufacturing plant and the largest economic development announcement in North Carolina’s history. VinFast’s project is estimated to grow the state’s economy by at least US$71.59 billion over the next 32 years,
The factory, on an 800-hectare site, will have an annual capacity of 150,000 vehicles and start rolling them out from the second half of 2024. Besides SUVs, the factory will also make EV battery packs and electric buses.
Vinfast’s first factory in Haiphong, Hanoi.
“Having a production facility right in the market will help VinFast to proactively manage its supply chain, maintain stabilized prices and shorten product supply time, making VinFast’s EVs more accessible to customers, contributing to the realization of local environmental improvement goals,” said Le Thi Thu Thuy, VinFast Global CEO and Vice Chair of the Vingroup. The Vingroup was founded by Pham Nhat Vuong, Vietnam’s first billionaire and its richest person.
The US factory will be Vinfast’s third production site following the first one in Haiphong, Vietnam. It also acquired a GM factory in Hanoi as well as GM’s proving grounds in Australia. However, it decided to later sell off the proving grounds.
For its US business, Vinfast plans to spend $200+ million for a headquarters in Los Angeles and set up a network of more than 60 outlets with aftersales centres this year.
The 5-year old carmaker currently has 2 fully electric SUVs, the VF8 and VF9 (previously known as VF e35 and VF e36), which were styled by Pininfarina. The smaller VF8 has 2-wheel drive and all-wheel drive with one or two electric motors and a 90 kWh battery claimed to give 500 kms of range. The larger VF9 has three rows of seats and dual motors for all wheel drive. The battery pack has a capacity of 106 kWh which is claimed to be good for around 482 kms of cruising range.
Like other Asian brands that entered the US market, it’s a gamble that Vinfast is taking, especially as it is so new. However, its lack of reputation may also work as people will not have preconceived notions about the brand and may assume that being Asian, it will have the sort of quality and reliability for which Japanese products have long been known. Being ‘Made-in-America’ may also be helpful in gaining acceptance but ultimately, Vinfast will still have to fight for its place in the market against other established brands.
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With restrictions in many countries due to the COVID-19 pandemic, event organisers have found it difficult to have the usual live events since there are social distancing requirements and invited guests may have concerns about being in a crowded environment. Nevertheless, the pandemic should not be allowed to impact our lives so greatly that annual events cannot be held at all, and the solution has been to have them online.
Many companies have been doing this and so has ASEAN NCAP for its 4th Grand Prix Awards announcement. ASEAN NCAP is the New Car Assessment Programme for Southeast Asian Countries, a regional organisation affiliated to Global NCAP which was initiated and established by the Malaysian Institute of Road Safety Research (MIROS) in response to the UN’s Decade of Action for Road Safety.
In 2012, the City was among the very first cars tested by ASEAN NCAP at its crash-test facility in Melaka.
Aerial view of ASEAN NCAP’s facility in Melaka, one of the sites where crash tests are conducted.
The ASEAN NCAP Grand Prix Awards event recognizes and commemorates high achievers in car safety in the ASEAN region. The event was first held in 2014 in Sarawak, followed by the second in 2016 in Kuala Lumpur, and the third was held in Indonesia in 2018.
Two main awards
The 4th edition was initially planned in 2020 but due to COVID-19 pandemic, it had to be postponed to February 2021. There are two main awards given out – the Excellent Award and the Best Safety Performance Award – which have a number of categories each.
Under the Excellent Award, 12 winners were identified in which the award criteria were for the company/vehicle/organization/individual that contributed towards the improvement of vehicle safety in the ASEAN market.
Toyota Corolla Altis – one of the models which contributed to the carmaker receiving the most 5-star awards since 2019.
Latest Isuzu D-MAX recognised for Continuous Safety Improvement.
As for the Best Safety Performance Award, there were 4 categories and selection was based on the highest scoring points during the 2019-2020 assessments.
Top scores in occupant protection made the Honda Accord stand out for safety performance.
Commenting on the awards, ASEAN NCAP Secretary-General and Acting Chairman, Adjunct Prof. Ir. Ts. Dr. Khairil Anwar Abu Kassim (also MIROS Director-General) said: “Over the years, we saw great efforts have been put forward by vehicle manufacturers to ensure their vehicles are offered with the best safety features for the road-users. As such, the awards will provide them with a competitive edge against other models that do not offer such safety technologies albeit better passive safety technologies or advanced safety assist.”
Recognition for individuals and organizations
“Furthermore, as ASEAN NCAP has been in existence for 10 years now, we would like to recognize not only vehicle models but also organizations or individuals who have worked hand-in-hand with ASEAN NCAP and continuously strived to ensure the significance of vehicle safety. I look forward to work together with these important individuals and organizations as well future vehicle models under the new ASEAN NCAP assessment protocol for 2021-2025,” he added.
To know more about ASEAN NCAP and read the reports of the various models it has assessed, visit www.aseancap.org.
Vinfast, the Vietnamese carmaker which has been in operation for 3 years, has completed development of its first three smart cars. While the company aims to become a major global player in the EV (electric vehicle) segment, these new models are also available with 2-litre petrol engines.
The new range consists of the VF31, VF32, VF33, in which VF31 is a mid-size C-segment SUV while the VF32 will be one size up in the D-segment and the VF33 will be in the E-segment. The VF31 will be available with only an electric powertrain, while the VF32 and VF33 will each have 2 electric and petrol versions.
All 3 models have Level 2-3 autonomous features, with 30 smart features divided into 7 groups. These include intelligent driver assistance system, adaptive lane control system, cruise control system active, multi-point collision warning system, comprehensive collision mitigation system, intelligent automatic parking system and driver monitoring system.
Vinfast expects that, at launch, these will be the few SUVs in the world with many Level 3 autonomous features. For the high-end versions, high-performance sensor systems will be used. These will employ LiDAR sensors with 14 cameras capable of detecting objects up to 687 metres away. Around the vehicles will be 19 sensors to scan 360 degrees which can operate at high speeds above 100 km/h.
The self-driving system controlled by the Orin-X chip can process up to 200 GB of data per second, allowing control and navigation 8 times faster than current generations. In addition, the premium version of all 3 models is equipped with some Level 4 autonomous features such as automatic 3-dimensional map setting (market-dependent), allowing automatic parking and location, as well as summoning the vehicle.
In addition to autonomous features, Vinfast has applied a user-centric development philosophy. There are smart features in the e-cockpit virtual cockpit which makes use of artificial intelligence technology (AI), machine learning and deep learning, facial recognition, and a multilingual virtual assistant.
The objective of using advanced technologies is to provide comfort and enjoyment when travelling in the vehicle. The occupants will also have an extensive range of customization so that they can personalize the vehicle according to characteristics and usage habits.
The vehicles are engineered to meet the world’s highest safety standards and are expected to be able to score the maximum 5-star ratings in the US NHTSA and Euro NCAP assessments. Besides the usual active safety systems to assist the driver, there are also automatic detection, warning and notification systems to medical facilities in the event of an accident.
Vinfast says that the battery packs. Which can provide a range of over 500 kms, are situated under the floor of the vehicle. They are designed to high safety standards and will have the ability to update software remotely, automatically detect faults on the vehicle and automatically contact the service centre.
The first model to go into production this year will be the VF31 and orders from the domestic market will be accepted from May, with deliveries to begin from November 2021. Order-taking for the VF32 and VF33 models will start from September 2021, with first deliveries planned to start from February 2022.
Vinfast also has ambitions to export the SUVs to the US market by the middle of next year. It is not easy to get into the US market as the regulations are tough, especially for safety. Emissions should of course be no problem since it is electric, and the autonomous capabilities should put Vinfast ahead of others.
Vinfast, Vietnam’s only domestic brand, has been in the market for a couple of years now and is working hard at establishing its credentials as a premium carmaker. Besides the two models it has already started producing, it has also come up with a limited edition SUV model exclusively for the Vietnamese market.
Designed by Pininfarina (which was also involved in its first two models), the SUV is known as the President and claimed to be one of the most powerful SUVs in the world at the moment. Vinfast will build 500 units for sale; the first 1000 will be sold for 3.8 billion VND (equivalent to about RM682,000) and for the remaining 400, the price will be 4.6 billion VND (about RM823,000).
To join the ‘most powerful SUV’ club, the President’s V8 engine has a maximum output of 420 ps/624 Nm and, with an 8-speed automatic transmission and full-time 4-wheel drive, the claimed 0 to 100 km/h acceleration time is 6.8 seconds and a top speed capability of nearly 300 km/h.
As would be expected of such an exclusive model. Pininfarina has given it a majestic and elegant design. The grille is designed in a diamond shape to accentuate the high position, while a large air cavity enhances the strong appearance. The highlight at the rear is a pair of large dual exhaust tailpipes.
Besides a choice of 18 exterior colours, the premium finishing includes sophisticated details covered in gold colour, copper bronze, gun metal, or metallic silver on the logo, roof rack, door braces, car steps, wheels, and bumpers.
The inside gives priority to the comfort of the rear occupants (although the driver’s comfort is not ignored). Massage functions are available in the seats, along with heating and ventilation features for the first and second rows. In particular, the second row of seats is very spacious with legroom of up to 20 cm more compared to the Lux SA2.0 model.
The seats are covered with premium Nappa leather from exclusive leather suppliers, along with premium veneer wood made in Italy exclusively for the President. The wood cladding on each car will have a completely different pattern, thus creating a unique ‘ID’ and adding to the exclusiveness. The entertainment system consists of a 7-inch multi-function display cluster with a centre screen of 12.3 inches and 13 high-end speakers positioned around the cabin.
Commenting on the President, Nguyen Thi Van Anh, Standing Deputy General Director of VinFast, said: “President is a product line that represents the high class and quality of VinFast, it is also our affirmation to the world of Vietnamese automobile production capacity. We want to dedicate this wonderful product and VinFast’s top-notch customer care services to Vietnamese people who have a pioneering and strong spirit. That is also the reason why VinFast only produces a limited number of 500 cars to ensure this masterpiece is worthy of its owner”.
With its motorbike-filled motorways, Vietnam has never been a country that’s been associated with the production of cars although it does have some assembly plants. But VinFast, Vietnam’s first domestic automotive manufacturer, is driving the charge to shift perceptions of the country from being a car assembly shop to a major automotive manufacturer.
In a new documentary, ‘Geared for the Future’, to be broadcast on Discovery Channel [Astro Channel 551] at 8:05pm and Discovery Asia [Astro Channel 571] at 8:45 pm tomorrow night (Friday March 27), racing driver and car enthusiast Claire Jedrek, gets inside the action as VinFast sets its eyes to compete on the global automotive stage.
In this Discovery special, Claire speaks to experts and key industry players including Dr. Tran Đình Thien, member of the Economic Advisory Group of Vietnamese Prime Minister, motoring expert Keshvinder Singh Dhillon (Keshy) and Van Anh, Deputy CEO of VinFast, to uncover the story of Vietnam’s miracle growth and VinFast’s journey and goal of becoming the biggest automaker in Southeast Asia.
VinFast is fast proving itself as a major driving force after building Vietnam’s first homegrown car brand from scratch. In 2018, the company successfully launched its first car models within a span of just 2 years with an estimated investment of US$3.5 billion. It only took them 21 months to build a factory, complete car design, and start mass production – creating a record in the global automotive industry.
Claire visited Southeast Asia’s first fully digital automotive factory, observing the state-of-the-art technology that gets the job done. She shares with viewers the challenges behind creating a car that would appeal to the Vietnamese people and, at the test track, puts a VinFast car to the test.
PISTON.MY’s Keshy Dhillon and Claire Jedrek
These made-in-Vietnam cars may have just hit the market, but the company is ready to go full throttle. To date, the company has already received more than 17,000 orders from the domestic market. Its range will soon expand to include luxury cars, SUVs, electric motorbikes and buses which it plans to sell in other Southeast Asian markets and beyond.
