VinFast Will Invest In Factory Development In India And Indonesia

VinFast VF8. (Doc. VinFast Auto)

JAKARTA - As reported by VOI some time ago, VinFast made history as an automotive manufacturer from Vietnam that managed to stick its nails in the US market. In fact, this manufacturer is listed as one of the largest automotive companies in the world after Tesla and Toyota on Wall Street.

What happened next was unreasonable price fluctuations at its share price, according to Owen Lamont, an analyst and former financial professor of Yale.

Due to less than 1% of VinFast's traded shares, its share price is multiplied by the ownership of Phan Nhat Vuong, the company's founder, who is much larger, could provide a very high assessment for the company, even exceeding US automaker Ford's assessment.

Reporting from Nikkei Asia, Friday, October 6, VinFast is currently optimizing its capital expenditure plan for manufacturing development, which will save costs up to 400 million US dollars. This will be divided evenly in the first phase of the two new factories.

The company, which was introduced in 2017, stated that this savings is expected to be used to build local factories in Indonesia, one of the most populous countries in Southeast Asia and India as one of the largest vehicle markets in the world.

"VinFast is in a good position to expand in strategic markets such as Indonesia and India," said the company's Chief Financial Officer, David Mansfield.

The process of local assembly, known as Completely Knock Down (CKD), will involve sending vehicle units from Hai Phong, Vietnam, and assembly in the two regions. It is hoped that these factories will be able to produce 50,000 electric vehicles (EVs) annually, with the production period starting in 2026.

VinFast plans to sell all of its EVs in the Southeast Asian market, as well as venture into Europe and Canada. Despite its success in entering the US market, VinFast has to face major challenges in competing with giant automakers such as Tesla, Toyota, VW, Honda, and others.

To deal with it, VinFast is focusing his attention on the electric car segment and has introduced several products, one of which is VinFast VF9. The SUV will arrive in North America by the end of this year with two variants, namely Eco with a distance of 482 km and a Plus variant with a distance of 468 km. Powered by a double electric motor, VF9 is capable of producing 402 dk and 619 Nm torque, allowing it to reach speeds of 0 to 100 km/h in 6.5 seconds.

With these brilliant achievements and a strong focus on sustainable mobility, VinFast is getting stronger in his position as a major player in the global automotive industry.