Vinfast is also eyeing a potential IPO in the United States to secure funding for its expansion.
It is perhaps fair to say that Vinfast is certainly living up to the fast part in its name, especially when it comes to its international expansion ambitions. That is because despite Vietnam’s first homegrown automaker barely having celebrated its fourth birthday, the company has already announced plans for an imminent market entry into both North America and Europe come 2022.
In fact, Vinfast has recently revealed that it had already begun initial operations in the United States, Canada, France, Germany and the Netherlands. Having both opening offices and hiring staff in these 5 key markets, the Vietnamese automaker is also signalling that it will soon be opening its first international showroom over in California too.
Further details however about its imminent global expansion is still currently thin on the ground at the present moment, but Vinfast has previously stated that its international launch lineup will consist of two all-electric crossovers: the X50-sized VF31 and the X70-sized VF32. Both of which will apparently feature up to Level 3 autonomous driving tech, though it is worth noting that neither of these Vietnamese-made e-SUVs haven’t actually been officially launched yet.
Vinfast VF31
Vinfast VF32
Vinfast’s US division CEO has also reportedly announced previously that its North American market penetration strategy revolves around mainly online sales, along with a battery leasing scheme for its EVs. The Vietnamese automaker was apparently considering an initial public offering in the United States or merger with a Special Purpose Acquisition Company too, in order to raise at least $2 billion (RM 8.4 billion) in capital to fund its International expansion endeavours.
Unfortunately, its plans for an IPO has reportedly been delayed for unspecified reasons. Vinfast has also recently slashed its 2022 sales forecast from 56,000 units to just 15,000 units, due to the ongoing semiconductor crisis.
These mounting problems therefore will most likely make Vinfast’s entry into these developed auto markets even harder than it already is. This is especially considering that the Vietnamese automaker’s offerings are competing directly against the likes of VW and Tesla, in what is a lucrative but increasingly crowded marketplace.
That said though, Vinfast looks to be doing rather well for itself in its home market of Vietnam at least, with over 30,000 of its cars being sold over there last year. Being a part of Vietnam’s largest private conglomerate too — which incidentally dabbles in anything and everything from housing, resorts, schools, hospitals and shopping malls — should also mean that the automaker will most likely be able to at least confidently begin its upcoming overseas expansion.
Just to flex some Malaysian pride however, it is worth pointing out that Vinfast won’t be the first ASEAN automaker to venture forth overseas and into these developed markets. Nor will it be the second too, as both Proton and Perodua had made its mark over in the UK.
The word had in the above sentence is key though, as both Malaysian marques had long since retreated from Europe after a prolonged period of dismal sales. Hopefully Vinfast won’t make it three for three then, when it comes to ASEAN automakers failing miserably to penetrate the European market.
