How Will Vietnam’s VinFast Fare in the Philippines?
Vietnamese electric vehicle (EV) brand VinFast’s Philippine brand launch event at SM Mall of Asia included the signing of its first four dealers, marking a strong start in creating a network of dealers nationwide. The four dealers, namely EV Solutions, K1 Prestige Bay Motors Inc, and Autoflare Corporation, are all based in Metro Manila while MNV Auto Group Inc., is based in Iloilo City. VinFast said that its showrooms are expected to open in Manila by the end of June 2024.
Initially, Vinfast will have four EV models when the dealerships open, including the VF 5, VF e34, VF 7, and VF 9 models with the first batch of cars are expected to be delivered to customers by the third quarter of this year. In addition, its mini e-SUV, the VF 3, is also expected to be introduced soon.
Besides EV cars, VinFast also produces electric motorbikes and electric bicycles, which were showcased during the brand launch event.
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The Vietnamese automotive brand said it will offer a unique battery subscription policy, which will help bring down the cost of electric vehicles. Included in the battery subscription policy, is a free battery replacement and maintenance program if the battery capacity falls below 70 percent. To assure the long-term sustainability of its EVs, Vinfast plans to offer a seven to 10-year warranty on vehicles.
“By partnering with trusted and experienced automotive companies, VinFast is determined to deliver smart and convenient electric mobility solutions to Filipino consumers as soon as possible, offering complete peace of mind,” Nguyen Thi Minh Ngoc, CEO of VinFast Philippines. “This collaboration marks a significant step forward, establishing VinFast's presence and laying a strong foundation for our long-term growth in the Philippines. We're further committed to expanding our electric vehicle dealership network across major cities, actively contributing to the unstoppable global shift towards green transportation.”
The Philippines is the third Southeast Asian market VinFast has entered, following Indonesia and Thailand. Last January, President Ferdinand Bongbong Marcos, Jr. met with executives of the Vingroup Company, the parent company of VinFast, during his state visit to Vietnam. The VinGroup is Vietnam’s largest private company with $21.1. billion market capitalization as of April 2023. Its subsidiary VinFast currently has a valuation of $15 billion.
Aside from plans to sell and launch its EVs in the Philippines through the dealership business this year to test the local market, it also expressed its intention to engage in the manufacture/assembly of CKD EVs depending on the outcome of its market tests, according to the Presidential Communications Office (PCO).
VinFast, is a fully owned subsidiary of the Vingroup conglomerate, and was established in 2017 with the vision of becoming a global EV manufacturer. Vingroup, on the other hand, was formerly known as Technocom Group, and was founded in 1993 in Ukraine by Vietnamese businessman Pham Nhat Vuong. After three decades, Vingroup became the largest private conglomerate in Vietnam and one of the leading economic groups in the region. VinFast is the group’s global expansion strategy, with its vision of becoming a leading global smart electric vehicle company with a zero-emission mobility ecosystem including electric cars, electric buses, electric motorcycles, and electric bicycles.
To date, VinFast has already introduced seven electric car models and an electric pickup truck concept.
