Vingroup has invested US$3.5 billion in Vinfast automobile manufacturing complex aiming to become a leading automobile manufacturer in Southeast Asia with a designed capacity of 500,000 units by 2025.
The complex is expected to roll out 5-seater sedans, 7-seater SUVs, and electric motorcycles of European quality standards, with a capacity of 100,000-200,000 units per year.
Addressing the ground-breaking ceremony, Prime Minister Nguyen Xuan Phuc said automobiles are not simply cars but a national brand.
He said he believes Vingroup’s aspiration illustrates Vietnamese people’s dream of having made-in-Vietnam cars in the near future with an acceptable price and high quality.
Mr. Phuc said the government will create the most favorable conditions for Vingroup to implement the project which covers an area of 335 ha in Dinh Vu – Cat Hai Economic Zone in Hai Phong.
Twenty years ago, Vietnam created a strategy to develop an automobile industry, but the plan has remained incomplete.
Associate Professor-Doctor Pham Bich Sang, an expert in the field, said, “The market is growing rapidly and people’s income have increased US$2,000 to US$3,000, while import tax on the ASEAN automobile market is about to reduce to zero percent. The market is expanding not only in Vietnam, but also in other countries.”
“Vietnam’s transport infrastructure has been invested in much more. Most importantly, there have been many changes in automobile policies and the role of the private sector,” he said.
Vietnam’s population currently is 93 million with an average per capital income of around US$3,000.
Vinfast’s design of engines and major components will be bought from top European and US designers while exterior shapes will be designed by famous Italian studios.
Vinfast will also work with Vietnamese partners to manufacture spare parts, towards raising the rate of locally-made products to 60%.
Vinfast will use advanced and eco-friendly technologies, particularly green energy, to meet Euro 5.0 and Euro 6.0 emission standards.
It aims for a designed capacity of 500,000 units by 2025 but its first product in the next 12 months will be an electric motorbike model. Automobiles will be built in the next 24 months.
Le Van Loi, a resident in Hai Ba Trung district, Hanoi, said, “In recent years, Vingroup has invested in many fields on top of core businesses like real estate, tourism, retail, healthcare, education, and agriculture. I strongly believe in the automobiles which are made by the group. I’m willing to change to Vingroup cars in the next two years.”