In a challenging EV landscape, VinFast’s unwavering global expansion stands out, fueled by the formidable backing of parent company Vingroup. With a robust financial foundation, a cutting-edge technological ecosystem, and a commitment to sustainability, Vingroup empowers VinFast to challenge industry norms and drive the EV revolution forward.
VinFast, the young Vietnamese EV company seemingly emerging from nowhere, remains steadfast in its expansion plans. Already boasting a global footprint in the U.S., Canada, and Indonesia, VinFast is now setting its sights on the Philippines.
The source of its unwavering confidence lies in its parent company, Vingroup, Vietnam’s largest private conglomerate. At the helm of both is Pham Nhat Vuong, renowned for his bold leadership and visionary outlook.
“The electric vehicle market will continue to grow and eclipse gasoline-powered cars,” Pham declared in a recent shareholder meeting, showing a firm conviction in the EV sector amid a challenging landscape for the industry.
A Multifaceted Powerhouse Fueling VinFast’s Ascent
Vingroup’s impact on Vietnam’s economy is undeniable. Contributing nearly 1.6% to the country’s 2023 GDP, the conglomerate operates across technology-industry, trade & services, and social enterprise.
While all sectors contribute to Vingroup’s success, real estate and electric vehicles have emerged as the primary revenue drivers in 2023, surpassing USD6.5 billion combined. The first quarter of 2024 alone saw the company achieve USD855.7 million in consolidated net revenue and USD52.5 million in consolidated after-tax profit.
Vingroup’s robust financial support has been crucial to VinFast’s journey. Since its inception in 2017, VinFast has received USD11.4 billion in capital injections from Vingroup, its affiliates, and Pham himself. And there is more to come. At a shareholder meeting in April, Pham pledged another 1 billion USD from his personal wealth to VinFast, showing his determined commitment to the car company.
“VinFast is Vingroup’s mission, honor, and future, and I will not give up on VinFast.”, Pham said, adding that he will also invest nearly 400 million USD in 3 years to build EV charging network in Vietnam.
Vingroup’s Technological Ecosystem
Vingroup offers more than just financial support; it provides a comprehensive technological ecosystem that empowers VinFast to develop innovative electric vehicles that outshine their gasoline-powered counterparts. This ecosystem includes:
- VinBigData: Delivering innovative products like ViVi (smart voice assistant) and AI Camera.
- VinAI: A leader in smart mobility solutions, elevating vehicle performance through AI. VinFast’s collaboration with VinAI on VinFast MirrorSense, the world’s first AI-driven automatic mirror adjustment technology, won an Innovation Award at CES 2024.
- VinCSS: Focusing on cybersecurity, providing no password authentication and IT security services.
- VinHMS: Optimizing business operations through specialized tech products.
- VinBrain: Revolutionizing healthcare with AI-driven solutions.
A prime example of the collaboration within Vingroup’s subsidiaries is MirrorSense, a cutting-edge technology that automatically adjusts a car’s rearview mirrors using sensors to detect the driver’s head and eye position, ensuring safety and convenience when driving. This innovation garnered an award at the Consumer Electronics Show in Las Vegas earlier this year.
Co-developed by VinFast, VinAI, and VinBrain, MirrorSense utilizes precise eye sensors, boasting accuracy within 10 millimeters, to determine the ideal position for all three rearview mirrors, enhancing the driver’s visibility of the surrounding area.
Furthermore, MirrorSense incorporates facial recognition, enabling it to remember the driver’s face and automatically adjust the mirrors upon subsequent entries into the vehicle.
While still in development, this advanced technology is expected to be available soon in the brand’s passenger vehicles, further enhancing the driving experience for consumers.
Another feature integrated into VinFast cars, made possible by in-house collaboration, is ViVi, the voice assistant developed by VinBigData. ViVi understands and responds to Vietnamese voice commands, searches for information, and performs tasks like making calls or adjusting car settings.
These extensive in-house collaborations not only highlight Vingroup’s commitment to technological advancement but also highlight its dedication to integrating cutting-edge technologies into its electric vehicles, redefining the future of mobility with smarter, safer, and more sustainable transportation solutions.
In addition, Vingroup was recently awarded the prestigious AIBP 2023 ASEAN Tech for ESG Award, recognizing its leadership in sustainable development. The award highlights Vingroup’s dedication to integrating environmental, social, and governance (ESG) principles into its diverse business portfolio.
Vingroup’s commitment to sustainability contributes to a positive brand image for VinFast. This resonates with environmentally conscious consumers worldwide, enhancing the appeal of VinFast vehicles. The company’s efforts to promote sustainable transportation align with global trends and create opportunities for international expansion.
Vingroup’s green ecosystem provides a solid foundation for VinFast to thrive in the global EV market. By leveraging renewable energy, sustainable practices, charging infrastructure, and R&D, VinFast can establish itself as a leader in the EV revolution. The company’s commitment to sustainability not only benefits the environment but also enhances its brand image and creates new business opportunities.