VinFast, the first domestic car manufacturer from Vietnam, has kicked off its global expansion by opening offices in both North America and Europe.
The automaker’s models began to hit the streets of Vietnam in 2019 and the company is racing towards an entrance into the U.S. market.
“VinFast has set up representative offices in five international markets and will soon open showrooms in California,” company owner Vingroup said in a statement to Reuters. “VinFast USA’s CEO has already relocated to the U.S. from Vietnam recently.”
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VinFast was planning to sell 56,000 electric vehicles in 2022 but due to the semiconductor shortage, has scaled back that target to 15,000 vehicles.
The Vietnamese automaker will launch in North America and Europe in 2022, chief executive Nguyen Thi Van Anh told Reuters earlier in the year: “We are going to North America – U.S., Canada – and Europe at the same time. In Europe, we’re going to Germany, France and the Netherlands.”
VinFast will launch with a battery leasing scheme, meaning the cost of the battery will not be included in the final price. Customers will instead pay a monthly amount for the battery that is roughly equivalent of what an average consumer might spend on petrol. When the capacity of the battery drops to 70 per cent, the company will replace it free of charge. VinFast will also conduct most of its U.S. sales online.
In a bid to raise money for its expansion, VinFast is said to be considering an initial public offering in the United States or may merge with a Special Purpose Acquisition Company.
