What does Vietnam need Vietnamese car brand VinFast?

In November last year, Vingroup introduced the first Klara smart electric motorcycle to mass produce in Vietnam, in June this year the first Vietnamese cars – VinFast – will be sold. school In 2018, THACO inaugurated a Vietnamese-branded agricultural machine factory. In 2015, Vietnam started producing Bphone smartphones, and in October last year, Vietnam officially introduced the 3rd generation Bphone model. Song, Nikkei Asian Review notes, all these items, as well as many other Vietnamese products made primarily with the help of foreign departments and technology. For example, about 20 European enterprises help Vingroup produce electric motorbikes, Vinfast cars have designs created by leading Italian designers and German chassis. Most components of Bphone components come from foreign manufacturers.

Vietnam needs another 10 – 15 years to mass produce Vietnamese brand products. This is the opinion of Professor Vladimir Mazyrin, Director of the Vietnam and ASEAN Research Center, of the Russian Far East Research Institute. To do so, Vietnam should follow the path of Asian “tigers”, create necessary infrastructure, train personnel and gain experience. There is also an important issue – Vietnamese products should conquer consumers. There needs to be a carefully considered strategy to promote domestic brands in the market that has long been under the control of foreign giants like Samsung or Toyota. Professor Mazyrin commented, in my opinion, Vietnam started to produce Vietnamese brand cars and Vietnamese brand smart phones mainly to enhance the prestige of the country, to bring the Vietnamese brand to the world. Currently, in the market of Vietnam there are a series of high quality car and smart phone brands, it is difficult for buyers to choose a domestic product which has not been clearly defined.


In addition, if Vietnam aims to become a modern industrialized country, it should pay attention to one more factor. One of the salient features of the modern era is that the developed countries are moving from an industrial economy to a service economy, the important role of services in the economy is increasingly well recognized . This process is called servitization. In fact, the service sector must play a leading role in driving economic growth. Statistical data shows that service trade is one of the fastest growing sectors of the world economy and the service market share currently accounts for about 20% of world trade. Service trade includes business services, retail and wholesale services, construction and communications services, transport and finance, education and health, tourism and entertainment, as well as services. environmental Protection. In order to develop this global trend, Vietnam must make great efforts to restructure its education system and human resource training system to meet the requirements of the times. This is a serious challenge, the Russian expert commented.

Vietnam needs to create domestic production and service facilities because it is increasingly engaged in international production processes, attracting the increasing attention of major international companies. and transnational corporations (TNC). There is a risk of increasing the dependence of Vietnam’s economy on TNCs. Transnational corporations are establishing control over high-profit service sectors that create a large part of value-added, as well as for the raw material market, which creates the risk of turning Vietnam into a supplier of raw materials and cheap labor, into a “dirty” industrial zone polluting the environment, in addition to Vietnam can also face political risks.

The launch of the first automobile product branded Vietnamese at the Paris Motor Show 2018, VinFast is the pride and the turning point of the domestic industry.  Mr. Binh, from Hai Duong, is a long-distance truck driver of the North-South line. Each time driving on Highway 1A section through Hau Loc district (Thanh Hoa), going through the abandoned and degraded factory of Vinaxuki, he could not help but regret for a car company that seemed to change the brand cars. Vietnam.  About 2007-2010, Vinaxuki is a proud brand of truck manufacturing and assembly, and a desire of many drivers like Mr. Binh. He himself and many others are also full of faith and hope when Vinaxuki produces 4-seat cars instead of just trucks. However, that dream did not come true, Vinaxuki’s 25-hectare production plant was covered with dust, degraded and largely abandoned. Looking at the factory from National Highway 1A, weeds and trees grow more and more thick.  The dream of Vietnamese cars seemed impossible to implement, in 2017, Vingroup announced the launch of VinFast brand, encroaching into the field of automobile production. Many people are skeptical after Vinaxuki’s failure, but many people hope Vingroup can do something.  Mr. Binh also, he was surprised when Vingroup made cars and was skeptical. However, the “steps” of VinFast’s speed are making him more optimistic and more confident about the dream of Vietnamese cars becoming a reality.

On September 2, 2017, Vingroup officially started the automobile production complex in Cat Hai district, Hai Phong. Calculated from the start to bring the car to debut at the Paris Motor Show car exhibition in 2018 October only only 1 year. It was a journey that made anyone, even the world’s car makers, surprised.  The information about VinFast makes many people go from surprise to surprise. The first is that the company officially shook hands with BMW in buying intellectual property rights to develop Vietnamese brand cars. VinFast also signed a contract with Pininfarina to produce 2 sedans and SUVs worth 5 million USD.

On September 2, 2017, Vingroup officially started the automobile production complex in Cat Hai district, Hai Phong. Calculated from the start to bring the car to debut at the Paris Motor Show car exhibition in 2018 October only only 1 year. It was a journey that made anyone, even the world’s car makers, surprised.  The information about VinFast makes many people go from surprise to surprise. The first is that the company officially shook hands with BMW in buying intellectual property rights to develop Vietnamese brand cars. VinFast also signed a contract with Pininfarina to produce 2 sedans and SUVs worth 5 million USD.

In addition to BMW, VinFast shook hands with Bosch, Siemens, Pininfarina, Ital Design, Torino Design, Zagato, Magna Steyr, AVL, German Chamber of Commerce and Industry in Vietnam …. They are all well-known in the fields of design, providing solutions for manufacturing vehicles, technology, equipment, components, auto parts, training world technicians … Once there is a model and shake hands with the world’s leading brands, in June this year, VinFast established a joint venture with AAPICO (Thailand) in Hai Phong to provide the body parts for the first two models. . In addition, VinFast spent about 105 million USD to buy jigs, molds, and build factories for this item. In the same month, in order to prepare the distribution channel and vehicle maintenance system, VinFast signed an agreement to re-manage all of GM’s operations in Vietnam, including factories, personnel and the system of agents. The company bought the rights to a completely new small car from GM, officially completing the plan to launch a Vietnamese car model in 2019.

VinFast’s GM handshake smashed doubts about the national dealer networks that any automaker needs. With a decade of building the GM system in Vietnam, Vinamilk can inherit and expand quickly and effectively.  And the VinFast launch with the whole world a car logo, not inferior to big brands like Mercedes, BMW, Audi, Lexus, Porsche, Rolls Royce, Bentley, Peugeot … after a spectacular journey, speed so many people are proud.  As Mr. Pham Thanh Le, Deputy General Director of Otofun – the largest automobile forum in Vietnam, “a year ago, the word VinFast was only on banners before a vacant land. After 365 days, the word VinFast is behind the two real cars, and đã thực hiện để làm việc vào thời gian world. It is a proud event.

During more than a year, any new information about VinFast has received great attention from public opinion. From the start, until the announcement and selection of vehicle designs, until the first images of the car were leaked, VinFast received the attention and discussion of many interested people.  In addition to the positive reviews, VinFast received no doubt about whether it is possible to produce a Vietnamese automaker so quickly. Even skeptical about the quality, localization rate and objectives of VinFast. However, the leading expert on automobiles in Vietnam, Mr. Nguyen Thanh Hai, said that VinFast is taking steps “wisely” and “wise” to help save time and take short cuts.  “In order to achieve such progress, VinFast has chosen a very right approach and approach, combined with a very fast pace of project implementation. VinFast cooperates with the world’s leading partners in building factories, in production and in technology. The second is the way to make short cuts. VinFast uses the best resources and suppliers on the existing market. The third is the rapid, rapid deployment, typical working style of Vingroup, the parent company of VinFast, “he said.

However, some other comments say that VinFast does all the human resources, technology, design, distribution system.  In terms of personnel, only 3 weeks after its launch, Vingroup appointed James B.DeLuca, former vice president of global production operations General Motors (GM), as General Director of VinFast automobile factory. This is considered an experienced man in the automotive industry, which is expected to help VinFast break through.  A leading person in Vietnamese cars, Mr. Vo Quang Hue, once General Director of Bosch Vietnam, also joined Vingroup as Deputy General Director of the automobile industry, overseeing VinFast automobile production project. .  In terms of technology, VinFast immediately shook hands with Bosch and a host of other names to research and “take a short walk”. Regarding capital, Credit Suisse AG, one of the leading financial corporations in the world, arranged for VinFast to borrow 800 million USD.  Regarding the model design, Vingroup ordered the most prestigious design firms in the world, Ital Design, Pininfarina. Then survey Vietnamese customers, then choose 2 production sedan and SUV.

In another direction, VinFast’s 335 ha wide factory complex in Hai Phong is quickly completed. It places both factories of joint ventures with partners, producing auxiliary products. In July of this year, it was found that VinFast brought robotic arms intended to be placed in production plants to exhibitions on Industrial Revolution 4.0. This shows that VinFast is ready to mass produce new and officially sold commercial models in 2019.