Asked why he only has experience in service and real estate but dares to switch to car production, CEO VinFast has an unexpected answer.

Many people wonder where VinFast comes from and why does this young company dare to challenge Tesla in their own yard?

Founded in 2017, Vietnam-based automaker VinFast has shifted to fully electric vehicle production just five years after its launch. In 2022, they started exporting cars to the US market, announced that they would set up a factory in North Carolina and pursue the goal of an IPO. This ambition brought VinFast fame, but it also raised questions: Where did VinFast come from and why would this fledgling company dare to challenge Tesla in their own backyard?

In fact, VinFast not only has “backs” from the powerful parent corporation Vingroup, but they also fit the group’s model that is always challenging with new things, from smartphones to e-commerce. Electric vehicles, however, present a challenge on a different scale.

In an exclusive interview with Rest of Word VinFast global CEO Le Thi Thu Thuy explained why VinFast exports electric vehicles to the US, the feedback the company has received from customers, as well as the “detour” of the company. VinFast to catch up with competitors.

Here is the interview:

Vingroup has no manufacturing background, most only have experience in services and real estate. So how is the transition to car production done?

In fact, the root of Vingroup is manufacturing. We used to mass produce instant noodles in Ukraine. Of course, there are many different types of production. However, there are common points about the establishment of a factory and production line.

Car manufacturing is different, of course – much more complicated. From the very beginning, VinFast has recruited top talent with at least 20-30 years of experience in the automotive field – they have all witnessed and contributed to the creation of many models, including petrol and electric cars. Currently, VinFast’s workforce has 30 different nationalities and hundreds of foreign employees working in many positions, especially in production.

Why did VinFast decide to stop producing gasoline cars and switch to electric cars entirely?

In fact, that was our goal from the beginning: Make electric cars and go global. However, to produce electric vehicles, the fastest way to learn is to take a detour by learning from industry leaders such as BMW, GM. We learned how to set things up and develop cars, how to build a factory, and the necessary quality standards.

After managing the production of gasoline cars and starting to sell in the Vietnamese market, within just two years, three models of VinFast have become the best-selling cars in that segment.

However, we remain faithful to the original goal. We can’t say, ‘I make electric cars, but I still sell gas cars’. That’s like saying “I’m for the environment but I still care about profits, so I still sell petrol cars”.

Why is VinFast targeting the US and European markets even though it’s just a startup?

From the very beginning, VinFast decided to become a global company. The US and European markets are very demanding – with demanding customers. This is the basic foundation for VinFast to develop really good products. If you can conquer US and European customers, other markets won’t be a big deal.

How does VinFast aim to conquer American customers?

VinFast does not have a brand presence here. Therefore, we target customers by reaching them directly. We have to let customers experience the car and convince them one by one. Gradually, we will collect customer feedback to make the product better. Over time, the reputation and brand will gradually expand.

This is the path that VinFast has chosen. Perhaps there will be many difficulties. But with this route, we will be in direct contact with the customer so we can get their feedback.

The VF 8 City has been identified as a marketing vehicle. The driving range of this car is more limited than the standard version cars that will later be delivered to customers, because their batteries are different. But VinFast still wants to deliver these cars directly to consumers, so we can get their feedback. Customers can try it out and then exchange it for another vehicle.

VinFast is a young startup but has taken on great challenges. Can it be said that the environment at VinFast is constantly changing?

This is the culture of Vingroup. We change anything that doesn’t fit instead of just sitting around waiting to die. The ability to change and adapt for better growth is crucial.

Is VinFast’s goal to sell 750,000 electric vehicles a year by 2026? Is it too ambitious?

I think we need to do our best to surpass that number. Many people are switching from gas cars to electric cars. The market is huge. Of course, this goal is very difficult. Everyone knows that. But if it does, it will be worth it. I hope we will reach more than that number.

Source: Restofworld