VinFast is a new car brand in Vietnam owned by the conglomerate Vingroup. In November 2021, the company introduced two new electric cars, the VF e35 and e36, at the Los Angeles Motor Show. Investing in the US car market reflects the company’s global economic ambitions. Starting in the United States, the world’s second-largest car market originator, instead of China, which has the largest car market in the world, could be considered more internationally recognized.
There are many other possible economic reasons for China to overtake China without market penetration. These include the ongoing Vietnam-China tensions; Foreign car companies are relying on Chinese joint ventures, and the Beijing government-sponsored competition for China’s sensitive electric car industry.
Companies ranging from French company Peugeot to Japanese carmaker Isuzu entered the US car market and later left. A BMW executive has denied the question of whether companies are facing threats to new car companies like VinFast.
Steps of VinFast
Michael Lohscheller, CEO of VinFast, says that if you want to be a global brand, you have to come to the United States. The company is working on a manufacturing plant in the United States that will be listed on the New York Stock Exchange. It will certainly be difficult to compete with Tesla, but it will appeal to young people interested in new technologies.
VinFast currently focuses on California, a hub for technology research and development. California has a number of car design studios and is the birthplace of many new car concepts and is considered by many to be one of the defining trends of the world. VinFast plans to sell cars online, and Los Angeles has offered to set up a company headquarters. VinFast’s hatchback Fadil is currently selling well in Vietnam, which is showing signs of improvement.
However, it’s quite scary to invest in a country like the United States overseas to compete with big brands. Whether or not it will become an international brand in the future remains to be seen, but here’s a look at Vietnam’s current market penetration.