{"id":30951,"date":"2023-05-23T16:59:20","date_gmt":"2023-05-23T20:59:20","guid":{"rendered":"https:\/\/henrypayne.com\/?p=30951"},"modified":"2023-05-23T16:59:20","modified_gmt":"2023-05-23T20:59:20","slug":"good-morning-usa-how-vietnamese-startup-automaker-vinfast-came-to-america","status":"publish","type":"post","link":"https:\/\/henrypayne.com\/index.php\/2023\/05\/good-morning-usa-how-vietnamese-startup-automaker-vinfast-came-to-america","title":{"rendered":"Good morning, USA: How Vietnamese startup automaker VinFast came to America"},"content":{"rendered":"<p class=\"gnt_ar_b_p\"><em>Encinitas, California<\/em>\u00a0\u2014 The electric age has brought a flood of startups to the auto industry not seen for a century. Buoyed by the success of Tesla and the promise of government subsidies, small American companies like Rivian, Lucid, Lordstown, Fisker and others are vying to be the next big thing.<\/p>\n<p class=\"gnt_ar_b_p\">VinFast is a different sort of startup.<\/p>\n<p class=\"gnt_ar_b_p\">Like its startup contemporaries, VinFast \u2014 founded in 2017 \u2014 is young, hungry and determined to make its mark with electric SUVs. Unlike its U.S.-based rival, VinFast is headquartered in Hanoi and has access to the capital resources of the largest company in Vietnam: the $20.2 billion Vingroup.<\/p>\n<figure class=\"gnt_em gnt_em_img\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.detroitnews.com\/gcdn\/presto\/2023\/05\/23\/PDTN\/3187df79-bb09-4176-b9e6-ffa7495bd615-VinfastUSA_nguyen.jpg?width=660&amp;height=372&amp;fit=crop&amp;format=pjpg&amp;auto=webp\" alt=\"Vinfast CEO of North America Van Anh Nguyen introduces the 2023 Vinfast VF 8 to U.S. media.\" \/><img decoding=\"async\" class=\"gnt_em_img_i\" src=\"https:\/\/www.detroitnews.com\/gcdn\/presto\/2023\/05\/23\/PDTN\/3187df79-bb09-4176-b9e6-ffa7495bd615-VinfastUSA_nguyen.jpg?width=660&amp;height=372&amp;fit=crop&amp;format=pjpg&amp;auto=webp\" srcset=\"\/gcdn\/presto\/2023\/05\/23\/PDTN\/3187df79-bb09-4176-b9e6-ffa7495bd615-VinfastUSA_nguyen.jpg?width=1320&amp;height=744&amp;fit=crop&amp;format=pjpg&amp;auto=webp 2x\" alt=\"Vinfast CEO of North America Van Anh Nguyen introduces the 2023 Vinfast VF 8 to U.S. media.\" data-g-r=\"lazy\" \/><\/p>\n<\/div><div class=\"gnt_em_img_ccw gnt_em_img_ccw__cap gnt_em_img_ccw__crd\" data-c-caption=\"Vinfast CEO of North America Van Anh Nguyen introduces the 2023 Vinfast VF 8 to U.S. media.\" data-c-credit=\"Henry Payne, The Detroit News\"><\/div>\n<\/figure>\n<p class=\"gnt_ar_b_p\">Celebrating its 30<sup>th<\/sup>\u00a0birthday this year, the company founded by Chairman Ph\u1ea1m Nh\u1eadt V\u01b0\u1ee3ng has, like Hyundai and Toyota Asian multinationals before it, smelled the opportunity to offer an affordable auto alternative in the U.S. market. Like Chinese automakers GAC, Byton and Qiantu, which unveiled concepts for the U.S. market at major auto shows over the last five years, VinFast made a splash at the 2021 Los Angeles Auto Show with a stage-full of concept vehicles.<\/p>\n<aside class=\"gnt_m gnt_x gnt_x__lbl gnt_x__al\" aria-label=\"advertisement\">\n<div id=\"ad-slot-7103-mi-detroit-C1561-native-article_link-money-autos-2\" class=\"gnt_x_sl gnt_x_al\" data-g-r=\"lazy\" data-gl-method=\"lazyLoadX\"><\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\">Unlike its Chinese competitors, however, VinFast has followed through on its promise. The VF 8 SUV is now on sale in California, America\u2019s biggest EV market. VinFast says the midsize ute will be quickly followed by the large, three-row VF 9 \u2014 and then the VF 6 and VF 7 compact models later this year.<\/p>\n<p class=\"gnt_ar_b_p\">\u201cSince Day One, we had a global strategy,\u201d said VinFast CEO of North America Van Anh Nguyen in an interview at the VF 8\u2019s media launch in California. \u201cWe want to become a global, fully-electric company and here we are. We\u2019ve delivered vehicles to Vietnamese customers and now we are delivering the VF 8 to American customers.\u201d<\/p>\n<aside class=\"gnt_m gnt_x gnt_x__lbl gnt_x__al\" aria-label=\"advertisement\">\n<div id=\"ad-slot-7103-mi-detroit-C1561-native-article_link-money-autos-3\" class=\"gnt_x_sl gnt_x_al\" data-g-r=\"lazy\" data-gl-method=\"lazyLoadX\"><\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\">Nguyen emphasized a key to VinFast\u2019s quick-strike strategy is working with partners to develop its vehicles rather than organically growing as an auto company from within. For example, it began in Vietnam in 2017 licensing chassis from BMW and building cars for its local market. VinFast completed its first manufacturing facility in 21 months in Haiphong and began producing its LUX A2.0 sedan and LUX SA2.0 SUV.<\/p>\n<p class=\"gnt_ar_b_p\">For its EVs, VinFast has designed its own skateboard chassis with a business model that follows in Tesla\u2019s footsteps. Beginning in the California and Canadian markets, VinFast will operate through retail\/service centers complimented by mobile units to service vehicles at customers\u2019 homes.<\/p>\n<p class=\"gnt_ar_b_p\">\u201cOne of our models is connecting intelligence globally,\u201d said Nguyen. \u201cWe chose to work with the best partners in styling, in engineering.\u201d<\/p>\n<figure class=\"gnt_em gnt_em_img\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.detroitnews.com\/gcdn\/presto\/2023\/05\/23\/PDTN\/cf1850c2-a3c5-4465-a6b6-e4cac68fec32-VinfastUSA_modelx.jpg?width=660&amp;height=372&amp;fit=crop&amp;format=pjpg&amp;auto=webp\" alt=\"The 2023 Vinfast VF 8 offers customers a Tesla Model X-like experience, but for half the price.\" \/><img decoding=\"async\" class=\"gnt_em_img_i\" src=\"https:\/\/www.detroitnews.com\/gcdn\/presto\/2023\/05\/23\/PDTN\/cf1850c2-a3c5-4465-a6b6-e4cac68fec32-VinfastUSA_modelx.jpg?width=660&amp;height=372&amp;fit=crop&amp;format=pjpg&amp;auto=webp\" srcset=\"\/gcdn\/presto\/2023\/05\/23\/PDTN\/cf1850c2-a3c5-4465-a6b6-e4cac68fec32-VinfastUSA_modelx.jpg?width=1320&amp;height=744&amp;fit=crop&amp;format=pjpg&amp;auto=webp 2x\" alt=\"The 2023 Vinfast VF 8 offers customers a Tesla Model X-like experience, but for half the price.\" data-g-r=\"lazy\" \/><\/p>\n<\/div><div class=\"gnt_em_img_ccw gnt_em_img_ccw__cap gnt_em_img_ccw__crd\" data-c-caption=\"The 2023 Vinfast VF 8 offers customers a Tesla Model X-like experience, but for half the price.\" data-c-credit=\"Henry Payne, The Detroit News\"><\/div>\n<\/figure>\n<p class=\"gnt_ar_b_p\">Electric motors, batteries and exterior styling have been contracted to third parties. The VF 8\u2019s designer? The legendary Italian design shop, Paninfarina. Like other startups, VinFast has poached talent from legacy manufacturers. Former General Motors Co. designer David Lyons, for example, has further refined the VF 8 design in-house.<\/p>\n<aside id=\"gnt_atomsnc\" class=\"gnt_em gnt_em_anc\" data-g-r=\"lazy\" data-gl-method=\"loadAnc\" aria-label=\"Newsletter signup form\">\n<div class=\"label\" hidden=\"\"><\/div>\n<div class=\"container\">\n<div class=\"message\">\n<div class=\"title\">Get the\u00a0<span class=\"highlight\">COVID-19 Update<\/span>\u00a0newsletter in your inbox.<\/div>\n<p class=\"description\">Updates on how the coronavirus is affecting your community and the nation<\/p>\n<div class=\"frequency\">Delivery: Varies<\/div>\n<div class=\"container\">\n<div class=\"input-container populated\"><input autocomplete=\"off\" name=\"email\" required=\"\" type=\"email\" \/><\/p>\n<div class=\"clickable\"><\/div>\n<p><label>Your Email<\/label><\/div>\n<div id=\"bar\">\n<div class=\"highlight\"><\/div>\n<div class=\"progress-primary\"><\/div>\n<div class=\"progress-secondary\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\">\u201cWhat sticks with me is how big Vingroup is,\u201d said Paul Waatti, manager of industry analysis for AutoPacific, who visited the company\u2019s headquarters last year. \u201cThey are 2.4% of Vietnam\u2019s GDP. It\u2019s a massive company with resources to back up VinFast. They are in this for the long haul.\u201d<\/p>\n<p class=\"gnt_ar_b_p\">VinFast\u2019s corporate parent that made its initial fortune selling ramen noodles in Ukraine before expanding into real estate, retail malls, hotels, energy services, and universities in Vietnam. Unlike European and Japanese automakers who forged their brands in highly competitive domestic markets before exporting to the United States, VinFast is Vietnam\u2019s only car company \u2014 a symbol of national pride in an emerging economy were less than 10% of the population owns a vehicle.<\/p>\n<figure class=\"gnt_em gnt_em_img\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.detroitnews.com\/gcdn\/presto\/2023\/05\/23\/PDTN\/df7e3b44-542c-47ba-bf6e-51fefd6868c3-VinfastUSA_beach.jpg?crop=2785,1814,x760,y274&amp;width=660&amp;height=430&amp;format=pjpg&amp;auto=webp\" alt=\"The 2023 VinFast VF 8 is the first offering for the U.S. market from the Vietnamese automaker.\" \/><img decoding=\"async\" class=\"gnt_em_img_i\" src=\"https:\/\/www.detroitnews.com\/gcdn\/presto\/2023\/05\/23\/PDTN\/df7e3b44-542c-47ba-bf6e-51fefd6868c3-VinfastUSA_beach.jpg?crop=2785,1814,x760,y274&amp;width=660&amp;height=430&amp;format=pjpg&amp;auto=webp\" srcset=\"\/gcdn\/presto\/2023\/05\/23\/PDTN\/df7e3b44-542c-47ba-bf6e-51fefd6868c3-VinfastUSA_beach.jpg?crop=2785,1814,x760,y274&amp;width=1320&amp;height=860&amp;format=pjpg&amp;auto=webp 2x\" alt=\"The 2023 VinFast VF 8 is the first offering for the U.S. market from the Vietnamese automaker.\" data-g-r=\"lazy\" \/><\/p>\n<\/div><div class=\"gnt_em_img_ccw gnt_em_img_ccw__cap gnt_em_img_ccw__crd\" data-c-caption=\"The 2023 VinFast VF 8 is the first offering for the U.S. market from the Vietnamese automaker.\" data-c-credit=\"Henry Payne, The Detroit News\"><\/div>\n<\/figure>\n<p class=\"gnt_ar_b_p\">\u201cWe get a lot of support from our parent company Vingroup, the largest company in Vietnam,\u201d continued Nguyen. \u201cWe have a huge ecosystem in Vietnam where Vingroup has been in operation for 30 years.\u201d<\/p>\n<p class=\"gnt_ar_b_p\">VinFast follows current corporate fashion in outlining a larger purpose to \u201ccreate a better life for people\u201d and \u201ca sustainable future for everyone.\u201d The VinFast premium product strategy has predecessors.<\/p>\n<aside class=\"gnt_m gnt_x gnt_x__lbl gnt_x__al\" aria-label=\"advertisement\">\n<div id=\"ad-slot-7103-mi-detroit-C1561-native-article_link-money-autos-4\" class=\"gnt_x_sl gnt_x_al\" data-g-r=\"lazy\" data-gl-method=\"lazyLoadX\"><\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\">Toyota\u2019s Lexus brand came to the U.S. market in the 1980s looking like a Mercedes knockoff \u2014 but for thousands less. So, too, the VF 8. Inside the model\u2019s spare interior, Tesla\u2019s influence is apparent as the SUV is run by a single, 15.8-inch screen. Basic functions like adjusting mirrors and the steering wheel column are controlled in the screen. And, like Lexus, the VF 8 can be had for thousands less than other market players.<\/p>\n<p class=\"gnt_ar_b_p\">\u201cVinFast has set their sights on the toughest market in the world,\u201d said AutoPacific\u2019s Waatti. \u201cThey\u2019ve got some issues to work through on the VF 8. The VF 7 looks gorgeous. It\u2019s going to be about building brand equity and loyalty in a crowded market.\u201d<\/p>\n<p class=\"gnt_ar_b_p\">The VF 8\u2019s $46,000 sticker price is half that of a similarly-sized Tesla Model X. It\u2019s $30k less than comparable Audi and Cadillac EVs. Its price is similar to a Kia EV6, which is also trying to compete for the EV market\u2019s premium customer. The Vietnam-made VF 8 is initially offered only as a lease so that it can take advantage of a loophole in federal law that allows imported electrics to offer customers the full $7,500 tax credit.<\/p>\n<aside class=\"gnt_m gnt_x gnt_x__lbl gnt_x__al\" aria-label=\"advertisement\">\n<div id=\"ad-slot-7103-mi-detroit-C1561-native-article_link-money-autos-5\" class=\"gnt_x_sl gnt_x_al\" data-g-r=\"lazy\" data-gl-method=\"lazyLoadX\"><\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\">To gain the $7,500 on purchase, an EV must be produced in the United States (ultimately, its battery must be produced here too). To that end VinFast is building a production facility in Chatham County, North Carolina, with production capacity of 150,000 vehicles. It would be the company\u2019s second manufacturing facility after the Haiphong plant.<\/p>\n<p class=\"gnt_ar_b_p\">\u201cWe have looked at different states. We chose North Carolina,\u201d said Nguyen, who has moved to Raleigh to oversee the facility\u2019s construction on the 220-acre site. \u201cLooking at the regulations, tax rebates, it makes so much sense to have manufacturing here so we can relate to our north America customers faster.\u201d<\/p>\n<figure class=\"gnt_em gnt_em_img\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.detroitnews.com\/gcdn\/presto\/2023\/05\/23\/PDTN\/c78e7fd1-9b37-4273-841b-debaea21b9dd-VinfastUSA_vf9.jpg?crop=2504,1528,x1355,y386&amp;width=660&amp;height=403&amp;format=pjpg&amp;auto=webp\" alt=\"VinFast's second entry into the U.S. market will be a three-row SUV called the VF 9.\" \/><img decoding=\"async\" class=\"gnt_em_img_i\" src=\"https:\/\/www.detroitnews.com\/gcdn\/presto\/2023\/05\/23\/PDTN\/c78e7fd1-9b37-4273-841b-debaea21b9dd-VinfastUSA_vf9.jpg?crop=2504,1528,x1355,y386&amp;width=660&amp;height=403&amp;format=pjpg&amp;auto=webp\" srcset=\"\/gcdn\/presto\/2023\/05\/23\/PDTN\/c78e7fd1-9b37-4273-841b-debaea21b9dd-VinfastUSA_vf9.jpg?crop=2504,1528,x1355,y386&amp;width=1320&amp;height=806&amp;format=pjpg&amp;auto=webp 2x\" alt=\"VinFast's second entry into the U.S. market will be a three-row SUV called the VF 9.\" data-g-r=\"lazy\" \/><\/p>\n<\/div><div class=\"gnt_em_img_ccw gnt_em_img_ccw__cap gnt_em_img_ccw__crd\" data-c-caption=\"VinFast's second entry into the U.S. market will be a three-row SUV called the VF 9.\" data-c-credit=\"Henry Payne, The Detroit News\"><\/div>\n<\/figure>\n<p class=\"gnt_ar_b_p\">VinFast has signed a memorandum of understanding with the state that includes an incentive package worth $1.2 billion.<\/p>\n<p class=\"gnt_ar_b_p\">As for building batteries, the company admits the challenges of contracting with Chinese manufacturers like CATL while at the same time promising a sustainable green model. CATL processes lithium in China, one of the world\u2019s dirtiest manufacturing environments, while a majority of the world\u2019s cobalt (a key ingredient of battery packs) comes from Congo, where child labor is often used in mining.<\/p>\n<aside class=\"gnt_m gnt_x gnt_x__lbl gnt_x__al\" aria-label=\"advertisement\">\n<div id=\"ad-slot-7103-mi-detroit-C1561-native-article_link-money-autos-6\" class=\"gnt_x_sl gnt_x_al\" data-g-r=\"lazy\" data-gl-method=\"lazyLoadX\"><\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\">\u201cIt\u2019s a challenge the whole industry is grappling with,\u201d said Senor Director for Charging Sean Ackley.<\/p>\n<p class=\"gnt_ar_b_p\">Even before the $7,500 rebate, the midsize VF 8 will cost just $414 a month to lease \u2014 a figure more in line with a compact Audi A3 sedan than a midsize luxury EV from Tesla or BMW, which are generally north of $1,000 a month.<\/p>\n<p class=\"gnt_ar_b_p\">\u201cThere are three areas VinFast focuses on: 1) Quality, 2) Great styling and 3) service,\u201d said Nguyen. The company backs up the latter with a best-in-industry, comprehensive, 10 year\/125,000-mile warranty.<\/p>\n<figure class=\"gnt_em gnt_em_img\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.detroitnews.com\/gcdn\/presto\/2023\/05\/23\/PDTN\/af2453c6-0ff5-46f7-826b-71ec9557aa9b-VinfastUSA_cockpit.JPG?width=660&amp;height=372&amp;fit=crop&amp;format=pjpg&amp;auto=webp\" alt=\"The 2023 VinFast VF 8 offers self-drive assist like Tesla's Autopilot - but with less sophistication.\" \/><img decoding=\"async\" class=\"gnt_em_img_i\" src=\"https:\/\/www.detroitnews.com\/gcdn\/presto\/2023\/05\/23\/PDTN\/af2453c6-0ff5-46f7-826b-71ec9557aa9b-VinfastUSA_cockpit.JPG?width=660&amp;height=372&amp;fit=crop&amp;format=pjpg&amp;auto=webp\" srcset=\"\/gcdn\/presto\/2023\/05\/23\/PDTN\/af2453c6-0ff5-46f7-826b-71ec9557aa9b-VinfastUSA_cockpit.JPG?width=1320&amp;height=744&amp;fit=crop&amp;format=pjpg&amp;auto=webp 2x\" alt=\"The 2023 VinFast VF 8 offers self-drive assist like Tesla's Autopilot - but with less sophistication.\" data-g-r=\"lazy\" \/><\/p>\n<\/div><div class=\"gnt_em_img_ccw gnt_em_img_ccw__cap gnt_em_img_ccw__crd\" data-c-caption=\"The 2023 VinFast VF 8 offers self-drive assist like Tesla's Autopilot - but with less sophistication.\" data-c-credit=\"Henry Payne, The Detroit News\"><\/div>\n<\/figure>\n<p class=\"gnt_ar_b_p\">VinFast is the leading auto retailer in Vietnam, and sells electric buses and e-scooters in addition to its VF 8, VF 9 and VF e34 models. The latter was the first EV produced by VinFast (in 2021) but company marketing chief Robert Muller said the subcompact EV is too small for the U.S. market.<\/p>\n<p class=\"gnt_ar_b_p\">\u201cWe decided to start sales in California. The electric infrastructure and incentive program and EV adoption ratios are high here,\u201d said Nguyen of a state that dangles HOV-lane privileges and another $7,500 for customers to purchase an EV. \u201cFrom here, we will expand to other states as well.\u201d<\/p>\n<aside class=\"gnt_m gnt_x gnt_x__lbl gnt_x__al\" aria-label=\"advertisement\">\n<div id=\"ad-slot-7103-mi-detroit-C1561-native-article_link-money-autos-7\" class=\"gnt_x_sl gnt_x_al\" data-g-r=\"lazy\" data-gl-method=\"lazyLoadX\"><\/div>\n<\/aside>\n<p class=\"gnt_ar_b_p\"><em>Henry Payne is auto critic for The Detroit News. Find him at hpayne@detroitnews.com or Twitter @HenryEPayne.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Encinitas, California\u00a0\u2014 The electric age has brought a flood of startups to the auto industry not seen for a century. Buoyed by the success of Tesla and the promise of government subsidies, small American companies like Rivian, Lucid, Lordstown, Fisker and others are vying to be the next big thing. VinFast is a different sort [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/30951"}],"collection":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/comments?post=30951"}],"version-history":[{"count":1,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/30951\/revisions"}],"predecessor-version":[{"id":30952,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/30951\/revisions\/30952"}],"wp:attachment":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/media?parent=30951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/categories?post=30951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/tags?post=30951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}