Fast and Furious: VinFast accelerates green transition

VinFast, a relatively new player in the automotive industry, has quickly risen to prominence.

Just over two years after embracing an all-electric vehicle strategy, the company has emerged as a leading car brand in Vietnam, making it one of the few nations where a domestic EV manufacturer competes directly with established foreign gasoline carmakers.

While VinFast’s success may seem like a domestic win, its impact extends far beyond Vietnam’s borders. Southeast Asia, home to over 600 million people, has long been seen as a consumer market rather than a hub of innovation. For decades, the region has relied heavily on imported technology and industrial goods, with local industries struggling to become global leaders in high-tech sectors.

In Vietnam, for instance, the automotive industry has been dominated by foreign brands, particularly Japanese and Korean manufacturers. According to the Ministry of Industry and Trade, up to 80 percent of the automotive industry's production components are imported.

However, VinFast’s ability to compete with these foreign giants highlights the shifting landscape. The company’s success is a clear indicator that local industries can evolve to meet regional demands.

VinFast’s focus on three core values — premium-quality products, inclusive pricing and exceptional after-sales service — resonates strongly with Southeast Asia’s growing middle class.

In the Philippines, the push for a green transition has gained momentum, bolstered by initiatives like the Electric Vehicle Industry Development Act (EVIDA) and efforts to promote sustainable energy sources.

VinFast’s shift to electric vehicles is rooted in a mission beyond profit. As Vuong stated in 2023, “[Vingroup created VinFast] because we feel the need to contribute to society, not just do business. A large, successful enterprise with certain capabilities has a duty to contribute to its homeland,” Vuong said.