VinFast Expands to 6 Markets with a $3.2 Billion Investment Plan

At the beginning of this year, on January 6, 2024, billionaire Pham Nhat Vuong officially transitioned from Chairman of the Board of Directors to the position of CEO of VinFast, replacing Ms. Le Thi Thu Thuy. As the CEO of VinFast, Pham Nhat Vuong will directly oversee all operations, including global production, sales, and market strategy.

The VinFast Board of Directors believes that Pham Nhat Vuong is the most suitable person to be the global CEO of VinFast due to his valuable experience gained from founding and developing VinFast. Pham Nhat Vuong is also a leader of Vingroup, the largest conglomerate in Vietnam, with market-leading companies in various sectors including industry, technology, real estate, and services.

Following the leadership change, VinFast has taken rapid strides in expanding to new markets.

Pham Nhat Vuong’s CEO Journey

In the first three months of this year, VinFast expanded to markets such as India, Indonesia, the Middle East, and Africa.

Specifically, in India, VinFast and the Tamil Nadu state government signed a Memorandum of Understanding (MoU) to develop green transportation in India. VinFast will invest up to $2 billion in India, with an initial investment of $500 million over a period of 5 years. On February 25, 2024, VinFast officially broke ground on its first integrated electric vehicle manufacturing plant in Tamil Nadu, India, expected to be operational by 2026.

In Indonesia, VinFast plans to invest at least $1.2 billion in the long term. Alongside the distribution of imported vehicles from Vietnam in the initial phase, VinFast will invest $200 million to build an electric vehicle production plant with an estimated annual output of 30,000 – 50,000 vehicles in Indonesia. VinFast also announced plans to invest up to $900 million in Indonesia in the near future.

In addition, VinFast, GSM, and GoTo Gojek Tokopedia have signed an MOU for electric vehicles in Indonesia. VinFast has also signed cooperation agreements with five initial dealers in Indonesia and a Memorandum of Understanding to supply 600 electric vehicles to three Indonesian companies: PT. Energi Mandiri Bumi Pertiwi, PT. Sumber Amarta Jaya, and PT. Teknologi Karya Digital Nusa Tbk.

In the Middle East, VinFast and Bahwan Automobies Trading LLC (BAT) have signed a sales agreement, making BAT the official distributor of VinFast vehicles in Oman.

In Africa, VinFast recently signed an agreement with the Jospong Group of Companies, a leading conglomerate in Ghana, to distribute electric vehicles in Ghana and the West African region. Jospong will distribute VinFast electric cars, electric motorcycles, electric bicycles, and electric buses in the Ghanaian market and the wider West African market.

VinFast will also participate in the 45th Bangkok International Motor Show (BIMS 2024) at the end of March and officially launch the brand in Thailand. VinFast also plans to invest in the Philippines in 2024.

Pham Nhat Vuong’s New Venture to Support VinFast

Recently, on March 18, Pham Nhat Vuong announced the establishment of V-GREEN, a global charging station development company. The goal of V-GREEN is to invest in the development of charging infrastructure to support VinFast’s rapid global expansion and make Vietnam one of the countries with the largest density of charging stations in the world.

V-GREEN is a subsidiary of VinFast, with 90% ownership, and operates independently as a global partner in developing the charging station network for VinFast. V-GREEN will be responsible for investing in the entire electric vehicle infrastructure, reducing financial burden, and enabling VinFast to focus on market expansion and sustainable development.

According to Nguyen Duc Thanh, CEO of V-GREEN: “The decision to establish V-GREEN is a strategic move by the founder of VinFast in providing strong support for VinFast’s sustainable and stable development on a global scale.” He also revealed that Pham Nhat Vuong used personal assets to establish V-GREEN in order to reduce the financial burden on VinFast and support the company’s development.

Pham Nhat Vuong has invested a significant amount of money and passion into VinFast. In 2023 alone, he sponsored VinFast with over 20.6 trillion VND.

To boost sales, VinFast has also launched a campaign to support Vietnamese customers who own gasoline-powered vehicles. Customers who have previously purchased Lux A2.0, Lux SA2.0, or Fadil models will receive a maintenance package worth 5 million VND for Lux models and 3 million VND for Fadil models within a 3-year period. These customers will also receive an immediate 5% discount on any electric vehicle purchase.

For customers interested in purchasing electric vehicles, VinFast offers an attractive financing package with a maximum tenure of 8 years, with up to 70% financing and competitive interest rates. The interest rate is calculated at 5% for the first 2 years, 8% for the following 3 years, and 8.5% for the remaining 3 years. VinFast will bear any potential risks arising from interest rate fluctuations.

According to VinFast’s calculations, customers can own an electric vehicle from the company for as little as 5.29 million VND per month, excluding the initial down payment.

As VinFast continues to expand its presence in global markets, Pham Nhat Vuong’s dedication and financial support are instrumental in the company’s success. With the establishment of V-GREEN, VinFast aims to become a leading player in the electric vehicle industry and contribute to the green transportation revolution worldwide.

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