Vietnamese EV Manufacturer VinFast Opens Office In Singapore For Expansion To Asian And US Markets

VinFast VF8, ready to enter the US market. (photo: twitter @vinfast)

JAKARTA – Vietnam is now very advanced and even the most advanced country in Southeast Asia in electric vehicle technology. They are ready to compete with the world's EV giants to supply electric car products in Asia and the United States.

To meet this goal, VinFast Vietnam is moving its legal and financial headquarters to Singapore and is preparing to go public and manufacture its first cars for the US and European markets. This was explained by the CEO of VinFast, Le Thi Thu Thuy, to Reuters, Wednesday, May 25.

The three-year-old unit of conglomerate Vingroup JSC will start building the VF8 sports car (SUV) next week, with production of its own EV battery in August. Le Thi Thu Thuy, they will also build a factory in the US worth 4 billion US dollars (IDR 58.6 trillion) by the end of this summer.

Vingroup chairman Pham Nhat Vuong said earlier this month. VinFast has submitted an initial public offering (IPO) in the United States through its Singapore-based holding company – although market conditions may push the deal through to 2023,

Thuy declined to comment further on the IPO, but said the company's EV expansion plans were not dependent on listings. "Like other large companies, we always consider all potential financing transactions," said Thuy.

The CEO said he plans to spend more time in Singapore, where VinFast bought a building, turning its parent company into an operations hub that will include offices and housing for staff and executives.

"We feel Singapore is a jurisdiction that will give investors more confidence," said Thuy. "We are putting ourselves in the shoes of investors."

Although Thuy did not elaborate, Singapore is widely seen as the most developed market in Southeast Asia, with a strong regulatory framework, a mature financial services sector and access to arbitration.

Parent Vingroup is Vietnam's largest listed company by market capitalization, with businesses in retail, real estate and resorts. It created VinFast in 2019 to build conventional gasoline-powered cars before switching exclusively to EVs in 2021.

Although the market is teeming with established automakers competing with startups, Vingroup said in May still that it saw a global EV shortage it saw as a "golden opportunity".

With a local line-up of just one small EV, the e34, VinFast has invested heavily in developing models for overseas.

Alongside its VF8, they have also developed a larger VF9, although that was delayed by about a month due to the impact of the COVID-19 containment measures in Shanghai on suppliers, Thuy said.

"We will ship the car to the international market by the end of this year," said Thuy, starting with the VF8. "All of our efforts are at the start of production for the VF8."

VinFast is particularly betting on the US market, where it hopes to sell both SUVs for a starting price of around $41.000 with a battery rental package. It aims to open its first showroom in California in early July, including a flagship site in Santa Monica, Thuy said.

The automaker also plans to build a plant in North Carolina where it seeks government financing, with construction starting in late summer and production starting in 2024.

According to Thuy, VinFast's first VF8 model will be powered by a battery from South Korea's Samsung SDI Co Ltd, but the automaker has developed its own battery as a hedge against future shortages.

VinFast will start manufacturing batteries in August and is expected to have the capacity to produce about 3.000 vehicles with its own batteries by the end of the year, he said.

As of April, the company has sold 9.155 cars in its home market, most of its internal combustion models will be phased out. It has sold 996 EVs since launching the e34 in Vietnam.

"The company is also in the process of expanding its existing factory in Haiphong, Vietnam and hopes to produce 820.000 vehicles annually there by 2025," said Thuy. The company will maintain its operational headquarters in Vietnam, a spokesman said.