VinFast expands its market presence in the U.S.
Vietnamese company VinFast has started building its factory in the US in 2023. According to the electric vehicle manufacturer, it plans to invest USD 2 billion in the project. The plant will be operational in 2025.
It will include manufacturing facilities and assembly centres. There will also be a business ecosystem at the location. This will provide services for suppliers. According to company representative Le Thi Thu Thuy, the new plant will become a key facility for the production of electric vehicles for the North American market.
Initially, the plant will have an annual production volume of approximately 150,000 products. The number of products produced will increase over time. The plant will employ approximately 7,000 people.
VinFast Company Overview
VinFast is Vietnam’s first independent car manufacturing company. Pham Nhat Vuong, an entrepreneur, founded the company in 2017. By selling instant noodles, he became the country’s first dollar billionaire.
The first electric car models went on sale in Vietnam in 2019, and after a successful launch, the company announced its intention to enter the global market. VinFast sees Europe and North America as its key regions. The first step in implementing the large-scale strategy was the establishment of a subsidiary in Germany in 2018. A representative office in Australia followed two years later.
VinFast uses BMW Group technology for its electric and petrol cars. The Vietnamese manufacturer has an official licence to use the chassis of the BMW X5 model. The company also produces hatchback models previously made under the Chevrolet and Opel brands. It bought the rights to them from the American corporation General Motors.
In recent years, VinFast has significantly expanded its production of electric vehicles. The company is building new production facilities and attracting designers, engineers and constructors from major global companies.
– Technology and design licences from BMW and General Motors.
– VinFast has signed an agreement with a division of Siemens. This will provide the Vietnamese manufacturer with technology and components for the production of electric buses. The company will supply them to the European and African markets, as well as to Asian countries and Australia.
– In 2021, the company signed a contract for the use of software developed by Cerence. The software will be part of the car’s voice assistant system.
VinFast electric cars have received the necessary standardisation in Europe, Australia and the USA. The company’s products meet the requirements of Euro NCAP and NHTSA. In addition to a wide range of features, the vehicles also have a self-driving mode, primarily designed to assist the driver.