Vinfast "favors" businesses participating in the electric vehicle production supply chain in Ha Tinh

The above message was shared by Ms. Thai Thi Thanh Hai - Vice President of Vingroup and Deputy General Director of VinFast Global with nearly 1,000 Vietnamese enterprises at the Conference on Strengthening Localization and Developing the Supplier System held on June 9.

This is the largest-ever supply-demand connection event between an automobile manufacturer and Vietnamese supporting industry enterprises.

Take the mission of leading Vietnamese businesses to the world

Ms. Thai Thi Thanh Hai said that the total capacity of VinFast 's 4 factories is 800,000 vehicles/year (in Hai Phong, Ha Tinh, India, Indonesia). VinFast's car output in 2025 is expected to reach 280,000 vehicles, in 2026 it will reach 400,000 vehicles and by 2030, the target is to reach 1 million vehicles. With electric motorbikes, in 2025, VinFast is expected to reach 400,000 vehicles, by 2026 it is expected to reach 550,000 vehicles and by 2030, VinFast aims to reach 2 million vehicles.

“Although there may be many skeptics, this plan is completely reasonable and well-founded. Looking at the strong growth of electric vehicles in Indonesia and India, the potential for developing the car market in Asia is huge. This is the key market of VinFast, expected to have a strong boom in the coming years,” Ms. Hai analyzed.

“Since its inception, the founder (Chairman Pham Nhat Vuong) has set the goal of VinFast becoming a leading electric vehicle company in the world. Up to now, we have become the car company with the largest sales in Vietnam and have set foot in many countries. Previously, we did many parts ourselves, but now, we want to share cooperation opportunities with domestic Vietnamese enterprises. We will only focus on the core part,” said Ms. Thai Thi Thanh Hai.

According to the Vice President of VinFast Global, the car company has achieved a localization rate of 60%. The target is to reach 80% by 2026. Accelerating localization by 20% within 1 year is a big challenge for VinFast. Currently, VinFast has cooperated with about 700 businesses and has more than 300 businesses as potential partners participating in the company's global automobile production chain.

“We cannot and should not go it alone. To realize our aspiration to reach out to the world and become the leading electric vehicle company, we need the strength of the entire Vietnamese business community,” said Ms. Thai Thi Thanh Hai.

At the conference, the Vice President of VinFast Global announced a list of 15 groups of components and 5 groups of consumables that need to be supplied by domestic enterprises. This list covers almost all the components of automobile manufacturing, except for the software system that VinFast makes itself.

Along with that, an attractive policy was also announced by the Vietnamese car company: VinFast supports 50% of land rent for the first 3 years and 30% of land rent for the next 5 years for Vietnamese enterprises setting up factories in the group's industrial parks in Hai Phong and in the Vung Ang Economic Zone of Ha Tinh.

VinFast car production at factory in Hai Phong.

Ms. Hai said that if component manufacturing enterprises do not have design capacity or technology, VinFast will support finding designers and technology transfer partners.

She also noted that to join VinFast’s global supply chain, domestic enterprises must achieve international competitiveness, meeting requirements on management, technology, product quality, cost price and R&D. However, VinFast is committed to accompanying enterprises on this journey. “We have the knowledge, experience and commitment to accompany domestic enterprises to make it happen. This is a strategic and long-term partnership,” said Ms. Hai.

“I believe that the aspiration to go global is not only VinFast’s but also that of all Vietnamese businesses here. We accept the mission of being the locomotive and leading to help Vietnamese businesses realize this aspiration,” said the Vice President of VinFast Global.

Great opportunity for Vietnam's auto support industry

VinFast's strategy is of great significance as the Vietnamese auto industry has long struggled with the problem of joining the global supply chain, and most of the localization rate targets set out in the Government's Automotive Industry Development Strategy have failed. Over the past decades, due to the small market capacity, Vietnamese enterprises' weakness in both capital and technology, and high costs, automakers have been unable to increase the localization rate as committed in their investment licenses.

Many representatives of Vietnamese supporting industry enterprises expressed interest in the opportunity to join the supply chain for VinFast automobiles.

Not to mention, foreign auto giants entering Vietnam always prioritize bringing along a system of "satellites" from the mother country.

Mr. Chu Trong Thanh, Deputy General Director of Giai Phong Rubber Company expressed: "We come here not only to sell rubber components but also to contribute to domestic enterprises, together carrying out the mission of reaching out to the world."

Mr. Thanh said that the company has supplied components to Toyota, Honda and many other FDI corporations, so it is quite confident in meeting VinFast's requirements. He suggested that the Vietnamese car company should use recycled plastic components to increase the level of "green and clean".

Having been a satellite of VinFast since 2024, Mr. Ho Ngoc Toan, Deputy General Director of Automech Mechanical Equipment and Solutions JSC said: “We consider this a great opportunity. The current context is very favorable for the goal of accelerating automobile localization.”

“In the next 3-5 years, not only Automech but many other businesses have plans to expand their scale much more. Along with the Government's support policies for industrial production and the private economic sector, the transformation and acceleration in the auto support industry will be very drastic and promise a bright future,” Mr. Toan said.

Meanwhile, Ms. Truong Thi Chi Binh, Vice President of the Vietnam Association of Supporting Industries, affirmed: “With current capacity, domestic supporting industry enterprises can fully meet VinFast's 20% localization rate increase, and are even willing to take losses with the car company to realize its great aspiration to reach out to the world.”

“The potential of the Vietnamese automobile market is huge. Currently, there are only 22 cars per 1,000 people, while with the current GDP, it should be 200 cars per 1,000 people,” said Ms. Binh.

Speaking with VietNamNet reporter, Dr. Vo Tri Thanh, Director of the Institute for Brand Strategy and Competition Research, commented: "What we are witnessing reflects the trend that the Government is promoting: there needs to be pioneering enterprises and connecting pioneering enterprises with small and medium enterprises to grow and develop together."

“The three previous bottlenecks that prevented Vietnam’s auto support industry from succeeding have now been overcome: market capacity, technology transfer, and building industry clusters. With breakthroughs in thinking and institutions such as Resolution 57 and Resolution 68 of the Politburo, this is a great opportunity for businesses in Vietnam’s supporting industry, contributing to the goal of industrialization and Vietnam becoming a developed country by 2045,” said Dr. Vo Tri Thanh.

According to the draft Automobile Industry Development Strategy prepared by the Ministry of Industry and Trade, the target automobile market capacity by 2030 is 1 million vehicles with a localization rate of 55-60%. Currently, Vietnam only has about 80 enterprises producing components for 10 original equipment manufacturers, of which only 18 are tier 1 suppliers.

Source: https://baohatinh.vn/vinfast-uu-ai-doanh-nghiep-tham-gia-chuoi-cung-ung-san-xuat-xe-dien-tai-ha-tinh-post289554.html