BANGKOK – Exclusive with CEO VinFast revealing strategic plans for Vietnamese car manufacturers Entering in Thailand market
As the 45th Bangkok International Motor Show kickstart, a notable surge was witnessed as several new electric car manufacturers made their debut, marking a pivotal moment in Thailand’s automotive landscape. This trend underscores the rapid acceleration of electric vehicle adoption in the country, propelled by government incentives and subsidies.
Thailand is poised to dominate the Southeast Asian electric vehicle market in 2022, with a projected 58% share, surpassing competitors such as Vietnam and Indonesia. Despite this impressive regional growth, the global electric vehicle market remains relatively modest, constituting just 0.5% of total sales in 2022, as reported by Counterpoint Research.
Among the emerging electric car players, VinFast, a Vietnamese automotive company, stands alongside with Chinese brands At the Bangkok International Motor Show in this year, VinFast made waves by unveiling its ambitious plans to enter the Thai market.
Showcasing a diverse lineup ranging from A-SUV to E-SUV Segments including the VF5, VF e34, VF 6, VF 7, VF 8, and VF 9, the company aimed to introduce and familiarize Thai consumers.
Ms. Vu Dang Yen Hang, Chief Executive Officer of VinFast Auto (Thailand), shared with Khaosod English that Thailand, amidst its highly competitive automotive market, offers a promising landscape for VinFast’s foray into electric vehicles. She highlighted Thai consumers’ positive reception towards electric cars, noting their familiarity and knowledge in this domain. Additionally, the company stands to benefit from supportive government policies aimed at bolstering the electric vehicle sector.
Launching 4 models
The President of VinFast Thailand, revealed the company’s meticulous approach towards entering the Thai market, stating, “Prior to our expansion into Thailand, VinFast conducted extensive market research to understand the preferences of Thai consumers. This has led us to plan the launch of four electric car models within the country this year.” The company aims to kickstart its Thai venture by introducing the VF e34 model by June, followed by the VF 5 approximately 2-3 months later. The VF 6 and VF 7 models are anticipated for release by the end of 2024.
Following the formal partnership with the dealership, the company is set to launch the VF e34, VF 5, VF 6, and VF 7 models, along with the VinFast EV motorcycle, complete with pricing details.
Highlighting the significance of the VF e34 model, Hang emphasized, “This 100% electric Sub Compact Crossover car was globally introduced in January 2021 and has garnered commendable feedback from users worldwide.” Manufactured primarily at VinFast Trading and Production LLC factory in Vietnam, the VF e34 is poised to offer Thai consumers another compelling choice in the electric vehicle market. The company aims to deliver the initial batch of VF e34 cars to Thai customers around a month after it’s June launch.
Ms.Hang further elaborated on their strategy, stating, “Our initial focus is to gauge the response of the Thai market. We are keen to understand which of our car models resonates most with Thai consumers.” To facilitate this assessment, VinFast showcased its entire lineup at this year’s motor show for the first time, aiming to gather insights into consumer preferences. She added, “Flexibility is key to our distribution plans, and we are prepared to adapt based on the feedback and demands of the Thai market.”
Establish a dealer network
Recognizing the fierce competition within Thailand’s electric vehicle sector, the Chairwoman of VinFast Thailand highlights the company’s distinctive strengths in this dynamic market. Despite being a newcomer, VinFast boasts a diverse array of models across various segments, setting it apart as a comprehensive solution provider. “VinFast stands out as the only brand offering a wide range of five car models alongside electric motorcycles, catering to diverse consumer preferences,” she asserts.
In addition to its extensive lineup, VinFast places a premium on customer satisfaction through its robust after-sales policies. “Our commitment extends beyond sales; all VinFast vehicles come with industry-leading warranties, including a 7-10-year powertrain warranty and an 8-10-year battery warranty, this is the longest warranty among electric car brands.
When questioned about VinFast’s investment plans, the Chairwoman reveals the company’s initial strategy of importing vehicles from its Hai Phong manufacturing facility in Vietnam. These vehicles will be distributed in Thailand through a network of trusted local partners. Looking forward, VinFast is exploring potential avenues for direct investment within Thailand. “As we expand our presence, VinFast Thailand will evolve into both importer and distributor roles, supported by a robust network of dealerships committed to delivering exceptional service,”
To kickstart operations, VinFast aims to establish a strong presence in Bangkok and its environs before gradually expanding across the country. “Our immediate goal is to establish 30-40 dealer nationwide, strategically positioned to cater to the needs of our customers,” she concludes, underscoring VinFast’s determination to carve out a position in Thailand’s burgeoning electric vehicle market.
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