VinFast: a strategic pivot amid the green industry storm?

DNHN - As the global auto industry accelerates its transition to electric mobility, VinFast faces its toughest test yet: soaring financial pressure, heated debates on phasing out combustion engines, and mounting global competition.

History has shown that even industry titans like Apple, Tesla, Toyota, and General Motors have endured existential crises before emerging as global icons. VinFast, likewise, now holds a historic opportunity: to position itself as the “Tesla of Vietnam” and cement its place on the global map of green industry.

The eye of the storm and lessons from global giants

Business history is filled with storms that nearly sank leading corporations: Apple teetered on the brink of bankruptcy in the late 1990s; Tesla bled losses between 2008–2012, kept afloat only by Elon Musk’s personal loans; Toyota weathered a recall crisis of millions of vehicles in 2009; and General Motors collapsed into bankruptcy that same year before being bailed out by the U.S. government.

These companies not only survived but rose stronger, reshaping the future of their industries. For VinFast, today’s turbulence is more than a test of survival; it is a crucible of vision and resilience that will determine whether Vietnam’s EV champion can lead the next chapter of the green industrial era.

VinFast — Vietnam’s global electric dream

In just a few years, VinFast has left bold imprints on the international stage: a debut at the Paris Motor Show with the message “Vietnam is ready to compete globally”; a Nasdaq listing in the U.S., signaling financial transparency and global ambition; and recognition in Time magazine’s “100 Most Influential Companies” under the “Innovators” category.

Yet behind the spotlight lies a daunting reality: massive investments in factories, charging infrastructure, EV R&D, and ecosystem development decisions that demand long-term vision and a willingness to sacrifice near-term profitability. VinFast’s story is one of calculated risk, national pride, and relentless determination to prove itself in one of the world’s most unforgiving markets.

Bracing for global headwinds

According to Vingroup’s consolidated financial reports, domestic revenues still dominate, underscoring VinFast’s solid foundation at home. But sustaining long-term growth requires international expansion. Founder Phạm Nhật Vượng has pledged over $1 billion in personal capital to VinFast, a testament to his conviction in what he calls the “indomitable Vietnamese spirit.” Flagship projects such as factories in India, expansion into Indonesia, and a logistics port in Hải Phòng reflect the company’s ambition to break free of local confines and prove that Vietnam is “not small” on the global stage.

VinFast’s approach is distinct: channeling borrowed capital into tangible production assets, rather than speculative financial maneuvers. Lessons from Tesla in the U.S. and BYD in China highlight that consistent government policy spanning tax incentives, credit access, infrastructure, and consumer subsidies often spells the difference between failure and leadership.

From policy to public trust

Why, despite criticism and pressure from foreign rivals, does VinFast still command strong backing? The answer lies in Vietnam’s national priorities. The government has identified EVs as a strategic industry not only for green growth but also for building advanced supply chains, creating tens of thousands of jobs, and elevating Vietnam’s global profile.

In this sense, VinFast represents more than a private company. It is the face of a nation striving to enter the era of clean industry, a symbol of Vietnamese resilience and ambition in a global green economy.

Smart capital strategy and a signal to investors

By pivoting toward Asia, the fastest-growing EV market in the world, VinFast seeks to optimize costs, capture demand with appropriate price points, and expand charging infrastructure where adoption is most viable. This regional focus ensures global presence while reducing the cost burden of competing head-on in saturated Western markets.

Short-term profitability remains elusive. Yet, analysts note that within three to five years, the Asian focus could significantly improve margins once market maturity and infrastructure catch up.

For investors, VinFast should be seen as part of the broader Vingroup ecosystem, balanced by mature sectors like real estate (Vinhomes), retail (Vincom Retail), and hospitality (Vinpearl). This diversified approach cushions risks while allowing exposure to VinFast’s long-term EV potential.

As investment lessons from Tesla, BYD, and Toyota reveal, early-stage bets in nascent industries often deliver outsized returns for patient capital. VinFast’s challenge is not only operational, it is also about shaping investor psychology and educating the market during this critical transition.

The counteroffensive: a matter of survival

Foreign rivals are rewriting the rules with strong brands, vast dealer networks, and aggressive sales policies. For VinFast, the only viable path is a swift and strategic counteroffensive across four key fronts:

1. Product Repositioning – Accelerate in affordable EVs and mini EVs, leveraging a charging network across 34 provinces.
2. Customer-Centric Quality – Prioritize seamless performance, transparent service, and reliable aftersales over heavy marketing spend.
3. Flexible Battery Policy – Offer customers choices: outright purchase, lease, or installment plans, alongside take-back and recycling commitments.
4. National Identity Advantage – Harness “Made in Vietnam” pride and government support as a soft-power edge that global rivals cannot easily replicate.
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VinFast and the path through the storm

VinFast’s ultimate ambition is not merely to build cars but to establish Vietnam as a leader in the global green transition. That mission requires agility, relentless innovation, and a focus on customer trust.

As one industry expert put it:
“To reach safe harbor, VinFast must live the customer experience worldwide, invest tirelessly in differentiated EV services, and adapt quickly or risk being swept aside in the greatest industrial shakeout of our time.”

A senior policymaker echoed: “Every street cleared of gasoline fumes is a promise for a greener, healthier, and happier Vietnam.”

The defining question is no longer whether VinFast can weather the storm, but rather: How will the state, business, and society rally together to turn VinFast into a global success story and a lasting source of national pride in this new era of the green industrial revolution?

Dr. Nguyễn Thúy Lan