VinFast aims for 30-40 fold increase in U.S. sales this year

DNHN - Besides the U.S., VinFast is also accelerating the construction of manufacturing facilities in Asian markets, from India to Indonesia.

VinFast, a prominent Vietnamese automaker, has projected a significant surge in its sales in the U.S. market, aiming for a 30-40 fold increase from last year's revenue of $6.4 million. This optimistic forecast was disclosed in the company's recent report submitted to the U.S. Securities and Exchange Commission (SEC). VinFast anticipates maintaining this growth trajectory over the next five years, eventually reaching a break-even point.

In addition to its U.S. expansion, VinFast is accelerating the establishment of production facilities across Asia, with notable developments in India and Indonesia. The report highlighted that VinFast's completely knocked down (CKD) assembly plant in Thoothukudi, Tamil Nadu, India, is set to become operational in the first half of next year, six months ahead of the initial schedule.

In Indonesia, the largest market in Southeast Asia, VinFast's CKD plant is expected to start operations by the end of 2025, with the groundbreaking ceremony planned within the next two months. Both the Tamil Nadu and Indonesian plants will initially have a production capacity of approximately 50,000 vehicles annually, with potential expansion to 300,000 vehicles per year depending on market conditions.

VinFast has also reported progress in the Philippines, where it launched its brand in May and is preparing to open several showrooms to commence vehicle sales immediately.

Domestically, VinFast aims to become the leading automotive brand in Vietnam by competing directly with gasoline-powered vehicles. The company plans to expand its network of showrooms and authorized dealers to at least 120 by the end of 2024.

Mr. Pham Nhat Vuong, Chairman of Vingroup, emphasized the competitive advantages of VinFast's electric vehicles (EVs) over gasoline vehicles in the same class, highlighting lower total costs, cheaper energy cost per kilometer, reduced operational and maintenance expenses, and superior after-sales service. With a strategic customer approach, the ongoing expansion of charging stations nationwide, and increasing consumer awareness of EV benefits, these advantages are expected to bolster VinFast's market dominance.

Mr. Vuong has consistently affirmed that the shift to electric vehicles is an irreversible trend. In a recent interview, he reiterated his commitment to pursuing the VinFast project to its fruition.

Throughout 2024, VinFast has been intensifying its international market penetration, targeting regions including the U.S., Canada, Europe, and various Asian countries like India, Indonesia, and Thailand. The company is also exploring opportunities in the Middle East and Africa.

In late May, VinFast announced an exclusive partnership with Al Tayer Motors to distribute its vehicles in the United Arab Emirates (UAE). Al Tayer Motors, which already represents brands like Ford, Lincoln, Jaguar, Land Rover, Maserati, and Ferrari, will open the first VinFast showrooms this year, featuring models such as the VF 6, VF 7, VF 8, and VF 9. Specific launch dates were not disclosed.

Tu Anh