VinFast shifts emphasis from Western markets towards Asian markets in electric vehicle production
VinFast Expands Global Presence Amidst Financial Backing
VinFast, the Vietnamese automaker, continues to expand its presence in key Asian markets and Europe, despite facing financial challenges in the past. As of now, 92% of VinFast's revenue comes from Vietnam, with the company aiming to diversify its markets.
According to analyst Ken Foong from Bloomberg Intelligence, the financial backing of VinFast's founder, Pham Nhat Vuong, is expected to continue supporting the company, barring a significant downturn in the Vietnamese economy or Vingroup's loss of access to capital. Vuong himself has stated his readiness to continue supporting the company until his funds are depleted.
In Asia, VinFast is strengthening its position by inaugurating an EV assembly plant in Tamil Nadu, India, with an initial capacity of 50,000 vehicles annually, scalable to 150,000. This plant focuses on premium electric SUV models VF 6 and VF 7 and supports VinFast’s goal to tap into India’s fast-growing EV market and serve neighboring South Asian countries, the Middle East, and Africa.
The company is also building a $200 million EV assembly plant in Indonesia and expanding in Thailand and the Philippines. Most of VinFast’s 2024 deliveries remain concentrated in Vietnam, but the company aims to increase total deliveries to 200,000 vehicles in 2025, more than double from 2024.
In Europe, VinFast is broadening beyond electric SUVs like the VF 6 and VF 8 by entering the public transport market with electric buses (models EB 8 and EB 12), unveiled at the 2025 Busworld event. They emphasize partnerships with European transportation and infrastructure specialists to support this expansion. VinFast also pursues strategic partnerships to facilitate EV charging access for customers across Europe.
For example, they collaborate with Plugsurfing to offer over 1 million public charging points in 24 countries, including key markets like Germany, France, and the Netherlands. This approach aligns with European green transition policies and the Paris Climate Agreement targets.
VinFast opened a second plant in Vietnam in June with an initial capacity of 200,000 vehicles per year. The company delivered 97,399 vehicles in 2024, with 90% sold in Vietnam. The new markets VinFast is targeting, including India, Indonesia, and the Philippines, are considered "latecomers" in electric mobility but have immense potential and are currently in a dynamic growth phase.
Despite denying rumors of a European withdrawal in May, VinFast aims to strengthen its European presence. The construction of VinFast’s first overseas assembly plant in India is underway, with an annual production capacity of 150,000 vehicles. VinFast has received at least $14 billion in funding since its inception in 2017, with a significant portion, approximately $2 billion, coming from the personal wealth of founder Pham Nhat Vuong.
It's worth noting that the real estate business within Vingroup, which operates in real estate and hotels, is the most profitable segment, supporting the loss-making automaker. Vuong expects VinFast to reach profitability by the end of next year.
Sources: 1. VinFast to expand electric vehicle production in Asia, eye European market 2. VinFast Aims to Double Vehicle Deliveries to 200,000 in 2025 3. VinFast's Pham Nhat Vuong: We will continue to support the company until our funds are depleted 4. VinFast to Enter European Public Transport Market with Electric Buses 5. VinFast to Collaborate with Plugsurfing for EV Charging Access in Europe
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