Vietnam’s richest man plans electric vehicle factory to challenge Tesla in US

VinFast Lux 2.0

Vietnam’s largest conglomerate Vingroup is aiming at the US electric vehicle market because it plans to line up a facility for its VinFast electric cars within the country soon. Founded by Pham Nhat Vuong, Vietnam’s richest man, the group aims to rely on the likes of Tesla and General Motors on their own turf during a race to dominate the electrical mobility market.

With an investment worth $2 billion, Pham Nhat Vuong wants VinFast to be Vietnam’s answer to Elon Musk’s Tesla. The group hopes its electric cars and battery leasing model will provide it an edge within the US.

VinFast Lux 2.0 Interior
VinFast Lux 2.0 Interior

VinFast, the number five car brand in Vietnam, aims to launch in North America and Europe by next year. The group’s ambitions with its electric vehicles seems sky high because it won’t only need to compete with Tesla and GM within the US, but also Volkswagen, Toyota in Europe also .

VinFast hopes its unique business strategy of auto leasing scheme will help it make its electric cars cheaper . The scheme aims to scale back the value of the battery, one among the foremost expensive components of an electrical car, within the final price. VinFast has already pitched an electric SUV that it claims to be one among the foremost luxurious cars currently on offer.

Currently VinFast has its manufacturing facility in Vietnam which features a capacity of manufacturing 250,000 cars per annum . Yet, the carmaker has not seen great success yet. It clocked annual sales of around 30,000 units in 2020 in Vietnam.

For the US, VinFast plans to sell cars online to scale back the value of dealership networks. It claims to possess as many as 15,000 bookings thus far for its VF e34 electric in Vietnam.

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