Vinfast challenges Chinese targeting Southeast Asia’s EV market

Vinfast, a Vietnamese electric vehicle (EV) manufacturer, is actively competing with Chinese counterparts to penetrate the Southeast Asian EV market, leveraging the benefits provided by the ASEAN Free Trade Agreement (AFTA). The company is strategically targeting Thailand as its initial export destination due to the nation’s rapidly growing EV market, offering promising business prospects, as stated by Vinfast Auto (Thailand)’s CEO, Vu Dang Yen Hang.

Hang emphasized the appeal of the Thai government’s attractive incentive packages for the EV industry, which have spurred Vinfast’s expansion into the country. Discussions are presently ongoing with the Board of Investment regarding potential investment privilege packages.

While the decision regarding the establishment of an EV assembly plant in Thailand is pending, Vinfast remains committed to broadening its EV sales within the ASEAN region, capitalizing on the tariff-free advantages conferred by AFTA.

Vinfast, founded in 2017, commenced EV production in 2021. The company is currently in the process of constructing EV factories in North Carolina, USA, and India, with plans underway for a new facility in Indonesia, according to reports from Bangkok News.

Hang unveiled Vinfast’s ambitious initiative to export EVs to 50 countries within the year. Beyond targeting markets such as the US, Canada, and various European nations, the company aims to introduce its electric mobility technology to ASEAN countries, the Middle East, and Africa.

In Thailand, Vinfast has already established a network of 15 car dealers operating 22 showrooms across multiple locations, including Bangkok, Chiang Mai, Khon Kaen, Ubon Ratchathani, Ayutthaya, and Chon Buri. Hang remarked that this marks the company’s initial step in introducing EVs to Thailand, with dealers recognizing the potential benefits of tapping into the sustainable transport trend.

Thai market is experiencing a surge in loans for EVs, with projections indicating that they will drive the expansion in auto lending this year.

Krungsri Auto, a prominent auto loan provider and a subsidiary of Bank of Ayudhya (Krungsri), anticipates new EV sales to reach 100,000 units this year, marking a significant increase from the previous year’s figure of 76,000 units.