VinFast’s Strategies for Expansion into the Global Market | Bài thảo luận tiếng anh thương mại

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BÀI THẢO LUẬN
Học phần: Tiếng Anh thương mại 1
ĐỀ TÀI: VINFAST’S STRATEGIES FOR EXPANSION INTO THE GLOBAL
Giảng viên hướng dẫn
: Nguyễn Thị Thuý
Nhóm thực hiện : 07
Lớp học phần : 251_ENTI3311_08
Thành viên nhóm : Kiều Nguyễn Lệ Quyên Lê Thị Như Quỳnh Lê Đức Quang Hà Đức Tâm Nguyễn Hoàng Quân
MEETING MINUTES – GROUP 7
Time: from 9 p.m to 10 p.m, September 9, 2025 Place: Google Meet Participants:
Leader: Kiều Nguyễn Lệ Quyên Lê Đức Quang Nguyễn Hoàng Quân Lê Thị Như Quỳnh Hà Đức Tâm Contents for discussion:
- Come up with an idea for an outline - Assignment of duties Conclusion: - Active discussion Duties for participants: No Full Name Task Self-Assigned Instructor's Group Evaluation 1 Lê Đức Quang 2 Nguyễn Hoàng Quân 3 Kiều Nguyễn Lệ Quyên 4 Lê Thị Như Quỳnh 5 Hà Đức Tâm
Leader (Signature and name) Quyên
Kiều Nguyễn Lệ Quyên PAGE \* MERGEFORMAT 6 GROUP 7- TA TM1 -
251_ENTI3311_08 ( FEEDBACK ON OUTLINE FROM LECTURER ) Topic: VINFAST’S STRATEGIES FOR EXPANSION INTO THE GLOBAL MARKET OUTLINE:
I. Introduction In this part, you should mention the reasons for choosing this topic.
You should include some key points, such as the reasons why companies have to
expand markets globally and the importance of expansion strategies. Your topic.
Group name / Student: [Insert name]
Topic: VinFast’s Strategies for Expansion into the Global Market
II. Main contents
2.1. Concepts / Definitions
- Definitions of global market expansion, electric vehicles (EVs), and VinFast
- Some common global expansion strategies
2.2. General Introduction of Vinfast (You should briefly introduce this company in this part).
- The company’s current position in global markets and its transition from domestic to international EV production.
2.3. Development Process
A brief timeline of VinFast’s transformation and milestones in its journey to go global.
2.4. Core Global Expansion Strategies of VinFast and its impacts
a) Entering strategic international markets early.
b) Localizing production in key regions.
c) Positioning products as smart, tech-enabled EVs.
d) Building brand trust and global recognition.
e) Forming strategic partnerships and global alliances.
2.5. Of what? Strengths and Challenges of Vinfast in the Global Market?
2.6. Analysis of internal strengths and external challenges faced by VinFast in the global
context. I understood that you write this part based on 2.4? OR it is a separate part? Is PAGE \* MERGEFORMAT 6
this about Strengths and Challenges of Vinfast’s global strategies? OR is this about
Strengths and Challenges of Vinfast in the global context in general? You should
focus on your topic: strategies for global market expansion.
2.7. Recommendations It’s good if you can recommend some other effective global
expansion strategies that Vinfast has not used yet. III. Conclusion
Summary of VinFast’s global expansion efforts.
Evaluation of the effectiveness of its strategies.
Lessons learned and future directions (recommendations, you can write here, or in a
separate part 2.7 above) for both VinFast and other Vietnamese companies aiming for international success. References PAGE \* MERGEFORMAT 6
GROUP 7-TATM1 - 251_ENTI3311_08 ( GROUP OUTLINE COMPLETION ) Topic: VINFAST’S STRATEGIES FOR EXPANSION INTO THE GLOBAL MARKET OUTLINE: I. Introduction
1.1. The reasons for choosing this topic 1.2. The reasons why companies have to expand markets globally and the
importance of expansion strategies.
II. Main Contents
2.1. Concepts / Definitions
- Definitions of global market expansion
- Defination of electric vehicles (EVs) - Defination of VinFast
- Some common global expansion strategies
2.2 General Introduction of Vinfast
- Introduce this company briefly
- The company’s current position in global markets and its transition from domestic to international EV production.
2.3. Development Process
- A brief timeline of VinFast’s transformation and milestones in its journey to go global.
2.4. Core Global Expansion Strategies of VinFast and its impacts
2.4.1. Entering strategic international markets early.
2.4.2. Positioning products as smart, tech-enabled EVs.
2.4.3. Localizing production in key regions PAGE \* MERGEFORMAT 6
2.4.4. Building brand trust and global recognition through aggressive marketing and capital market presence.
2.4.5. Forming strategic partnerships and global alliances.
2.5. Strengths and Challenges of VinFast’s Global Expansion Strategies
2.5.1 Strengths of Vinfast in Global Expansion.
2.5.2 Issues and Challenges in implement the global expansion strategies.
2.6. Recommend some other effective global expansion strategies that Vinfast has
not used yet. III. Conclusion
- Summary of VinFast’s global expansion efforts.
- Evaluation of the effectiveness of its strategies.
- Lessons learned and future directions for both VinFast and other Vietnamese companies
aiming for international success. References PAGE \* MERGEFORMAT 6
TABLE OF CONTENTS
I. Introduction·····································································································
1.1. The reasons for choosing this topic......................................................................8
1.2. The reasons why companies have to expand markets globally and the
importance of expansion strategies.............................................................................8
II. Main Contents··································································································
2.1. Concepts / Definitions............................................................................................8
2.2. General Introduction of Vinfast...........................................................................9
2.3. Development Process..........................................................................................10
2.4. Core Global Expansion Strategies of VinFast and its impacts.........................11
2.5. Strengths and Challenges of VinFast’s Global Expansion Strategies..............15
III. Conclusion............................................................................................................22 PAGE \* MERGEFORMAT 6 I. Introduction
1.1. The reasons for choosing this topic
The topic “VinFast’s Strategies for Expansion into the Global Market” is selected
because it reflects one of the most remarkable steps taken by a Vietnamese enterprise
toward global recognition. VinFast, an electric vehicle manufacturer founded by
Vingroup, has quickly moved from being a newcomer in the domestic market to
positioning itself as an ambitious competitor in the international automobile industry. In
today’s globalized economy, companies must expand beyond their local markets not only
to increase revenues but also to strengthen brand presence, gain access to advanced
technologies, and spread risks across diverse regions. 1.2. The reasons why companies have to expand markets globally and the
importance of expansion strategies.
Global expansion is particularly vital in industries such as electric vehicles, where
rapid innovation and changing consumer preferences demand continuous growth and
adaptation. For these reasons, studying VinFast’s expansion strategies is important, as it
provides valuable insights into how a young company from Vietnam can enter highly
competitive markets, seize international opportunities, and establish its role in shaping
the future of sustainable mobility.
II. Main Contents
2.1. Concepts / Definitions
- Global market expansion is a business strategy in which a company expands from
its home market into foreign markets to reach more customers, grow sales, and build its brand worldwide.
- An electric vehicle (EVs) is a motor vehicle that runs fully or mainly on electricity
instead of petrol or diesel. It stores energy in batteries and uses electric motors to move.
- VinFast is a Vietnamese company that produces cars and electric motorbikes. It was
founded in 2017 and is headquartered in Hải Phòng City.VinFast is part of Vingroup, a
big Vietnamese business founded by Phạm Nhật Vượng. The company’s name stands for
“Vietnam – Style – Safety – Innovation – Pioneer”.
- Some common global expansion strategies: PAGE \* MERGEFORMAT 6
VinFast enters new markets and sells electric cars in the United States, Europe and
other countries, not only in Vietnam.
The company plans and builds car factories in other countries (for example, in the
U.S.) to be closer to customers.
VinFast cooperates with companies and dealers in each market to sell and service its cars.
The company promotes its brand at big international auto shows and through marketing.
VinFast invests in battery and electric motor technology to compete with global brands.
2.2. General Introduction of Vinfast
- Introduction:
VinFast is a Vietnamese company that makes cars and electric motorbikes. It was
founded in 2017 and is based in Hai Phong City. VinFast is part of Vingroup, one of the
biggest private business groups in Asia.
The company follows the idea “putting customers at the center” and keeps creating
high-quality products for everyone. Its vision is to become a smart electric vehicle brand
and to support the global electric car revolution. Its mission is to work for a green future
for all people. VinFast values good quality, fair prices and strong customer care.
In only a few years VinFast has quickly built a global presence, attracting top
talent and working with famous partners in the car industry. It is now moving from the
domestic market to international electric vehicle production and aims to be a leading global EV brand.
- Current Position in Global Markets: Domestically
, VinFast is the leader in electric vehicle sales in Vietnam.
Internationally, the company has launched EV models such as the VF 8 and VF 9 in
North America and Europe, opened showrooms in the United States, Canada and several
Southeast Asian countries, and started exporting vehicles from Vietnam. The company
has also signed dealer agreements in France and Germany and is expanding its dealer
network in Europe. To support this global expansion and strengthen its EV supply chain, PAGE \* MERGEFORMAT 6
VinFast is now building an assembly plant in India and plans additional plants to localize
production in target markets and reduce logistics costs.
Building on its success at home, VinFast has made a strong decision to move
completely to electric vehicles (EVs). In early 2022 they announced that they will stop
making cars with petrol or diesel engines by the end of 2022 and focus only on electric
vehicles. They introduced several electric models like the VF 8 and VF 9 and accepted
pre-orders globally, showing their new EV lineup in five different segments. To support
this change, VinFast invested in research and development of EV powertrains and improved battery technology
. By doing this, VinFast wants to help protect the
environment, meet clean energy demands, and
become a leading electric vehicle company around the world.
2.3. Development Process Year What Happened Why It Matters
2017 VinFast founded and started to build a big factory in Hải Phòng
Created the base for mass production
2018 Showed cars at Paris Motor Show (Lux
First time a Vietnamese car brand A2.0 & SA2.0)
appeared at a big international show
2019 Sold petrol cars and e-scooters in Vietnam Built its local market
2021 Announced full switch to electric cars, Important change towards the global EV showed VF e34, VF 8, VF 9 market
2022 Stopped making petrol cars Focus only on EVs
2023 Started exporting VF 8 to the U.S. and opened showrooms abroad
First real steps into the world market
2024 Building new plants (India) and
Produce closer to customers and cut PAGE \* MERGEFORMAT 6 Year What Happened Why It Matters
expanding dealers in Southeast Asia costs 2025
(plan) Increase production and sales abroad Strengthen position in the global market
2.4. Core Global Expansion Strategies of VinFast and its impacts
2.4.1. Entering strategic international markets early.
VinFast's expansion strategy is defined
by its aggressive entry into key
international markets, particularly those with high EV adoption potential and supportive
government policies. The company's focus on North America and Europe, and more
recently, Southeast Asia and India, is a calculated move to establish a global footprint quickly.
In North America and Europe: VinFast's early entry into the US, Canada, France,
Germany, and the Netherlands in 2021 was a significant statement of its global ambitions.
This was a direct move to challenge established automakers in some of the world's most
competitive and mature markets. By July 2025, VinFast had already partnered with its
first authorized dealership in California and signed agreements with new dealers in states
like New York, Texas, and Florida, bringing its total US network to 16 dealers across 7
states. This direct-to-dealer model is a strategic shift to accelerate sales and build a service network quickly.
In Southeast Asia and India: Recognizing the high growth potential in emerging
markets, VinFast has also pivoted to establish a strong presence in Southeast Asia and
India. In August 2025, the company inaugurated its EV assembly plant in Tamil Nadu,
India, with an initial capacity of 50,000 units. This US$500 million investment positions
VinFast as the first foreign pure-play EV manufacturer to set up a production facility in
India. This move allows VinFast to target India's mass-market segment with locally
made, more affordable EVs, a strategy that contrasts sharply with Tesla's more premium,
import-based approach. Similarly, in the Philippines, VinFast has quickly gained traction,
with its EV sales accounting for 25% of the country's EV market in the first half of 2025. PAGE \* MERGEFORMAT 6
2.4.2. Positioning products as smart, tech-enabled EVs.
VinFast distinguishes itself not just as a car manufacturer but as a smart mobility and technology company
. This brand positioning is central to its appeal to a new
generation of consumers who prioritize connectivity, advanced features, and an integrated digital ecosystem.
Advanced Technology: VinFast's vehicles, such as the VF 8 and VF 9, are
equipped with sophisticated features like Advanced Driver-Assistance Systems (ADAS)
and Smart Services. These include an AI-powered virtual assistant for voice control,
Over-the-Air (OTA) software updates, and seamless integration with a digital ecosystem.
This approach mirrors the business models of tech giants, where the product is a platform
that can be continuously improved and updated, offering a compelling value proposition beyond just the hardware.
Digital Ecosystem: VinFast's strategy extends be yond the car itself. It has
developed a comprehensive digital ecosystem, including the VF Connect platform for
remote vehicle monitoring and the VinFast app for a seamless user experience. By
leveraging data analytics, the company can predict maintenance needs, offer personalized
services, and continuously enhance its software to match user habits. This focus on an
end-to-end digital experience is a key differentiator in a crowded market.
Global Collaborations: T
o reinforce its technology-first image, VinFast has
partnered with leading global suppliers and tech firms. This includes collaborations on
battery technology and charging infrastructure, such as its partnership with Plugsurfing in
Europe, which gives customers access to over
1 million charging points across 24
countries. These alliances not only enhance the product offering but also build credibility
and trust in its technological capabilities.
2.4.3. Localizing production in key regions.
Beyond market entry, VinFast's strategy hinges on localized production to mitigate
logistical challenges, reduce costs, and strengthen its supply chain. This approach aims to
make its products more competitive and accessible to local consumers. PAGE \* MERGEFORMAT 6
North America: The most prominent example is the ongoing construction of its
manufacturing plant in North Carolina, USA. With a planned investment of up to $2
billion for the first phase, this facility is designed to have a capacity of 150,000 vehicles
per year. The factory, expected to begin production in July 2024, will produce the VF 8
and VF 9 models for the North American market. This strategic localization will help
VinFast overcome tariffs, reduce shipping costs, and shorten delivery times, directly
addressing a key challenge faced by import-reliant EV brands.
Asia: In addition to its main plant in Vietnam, which delivered 72,167 EVs
globally in the first half of 2025, VinFast has expanded its production footprint. The
inauguration of its plant in Tamil Nadu, India, and its plan for a factory in Indonesia are testament to this strategy
. Local production allows the company to capitalize on
government incentives, like those in India which favor local manufacturing, and to tailor
products to specific regional demands. This "made-in-market" approach not only lowers
costs but also builds stronger ties with local economies and supply chains.
2.4.4. Building brand trust and global recognition through aggressive marketing and
capital market presence.
VinFast’s Nasdaq listing and participation in major auto shows were intended to
deliver reputational lift and credibility in western markets. Listing on Nasdaq increased
the firm’s visibility and provided a publicly observable valuation benchmark;
concurrently, marketing expenditures and dealer onboarding were tools to translate that
visibility into retail traction. The impact has been visible in delivery numbers and
expansion of showrooms, yet financial market reactions (price volatility , investor
sensitivity to quarterly losses) indicate that the brand’s credibility is still fragile and
highly contingent on consistent operational performance and financial discipline.
VinFast’s strategy to build brand trust and global recognition focuses on increasing
confidence among both international investors and customers. A key step in this strategy
was the successful IPO on the Nasdaq in August 2023, which attracted global investor
attention and raised capital to expand production and invest in product research and
development. In addition, the company has participated in international auto shows,
notably the Los Angeles Auto Show, to showcase its advanced products and technologies
while establishing the presence of a Vietnamese EV brand on the global stage. VinFast PAGE \* MERGEFORMAT 6
also provides comprehensive global after-sales services, including warranty, maintenance,
and technical support, to strengthen customer trust and enhance the overall ownership experience.
The strategic impacts of these actions include increased brand recognition,
enhanced competitive positioning against major EV manufacturers, and strengthened
financial resources for expansion projects. However, the associated risks lie in the brand’s
reputation being fully dependent on product quality, service performance, and market
response; any issues with vehicles or services could rapidly affect customer and investor confidence.
2.4.5. Forming strategic partnerships and global alliances.
VinFast has implemented a strategy of forming strategic partnerships and global
alliances to build a comprehensive electric vehicle ecosystem, including charging
infrastructure, service networks, and battery lifecycle management.
In India, the company has partnered with local service providers and battery recycling specialists suc
h as RoadGrid and myTVS, while integrating its mobile
application with over 100,000 public charging stations in North America, enabling users
to easily locate and access charging services. These alliances allow VinFast to internalize
essential capabilities without relying entirely on in-house development , while also
demonstrating awareness of infrastructural and institutional constraints in foreign markets
(VinFast, 2025; Base.vn, 2025).
Strategically, these partnerships enhance operational efficiency by optimizing the
charging and after-sales network, reduce investment risks and costs compared to
independently building infrastructure, and accelerate international market entry by
embedding the firm within local networks, thereby mitigating the “liability of outsidership.”
Furthermore, alliances contribute to long-term brand credibility and strengthen
VinFast’s reputation as a technologically advanced, globally integrated EV manufacturer.
However, this strategy carries potential risks, including dependence on partners’
capabilities and reputations, challenges in contract management, cultural and legal
differences, and high capital costs coupled with operational losses during early market entry. PAGE \* MERGEFORMAT 6
Overall, this alliance strategy not only shortens market entry time and strengthens
operational capacity but also enhances VinFast’s long-term competitive position in the
global EV market, complementing its early market entry, localized production, and global
brand-building strategies. The strategic impacts are thus reflected in faster market
readiness, improved service quality ,
risk mitigation, and enhanced competitive positioning.
2.5. Strengths and Challenges of VinFast’s Global Expansion Strategies
2.5.1. Strengths of Vinfast in Global Expansion
- Strength from Solid financial capacity from Vingroup:
VinFast’s global expansion is strongly underpinned by the financial resources of
Vingroup, one of Vietnam’s largest private conglomerates. In 2023, Vingroup pledged
USD 2.5 billion to support VinFast, ensuring sufficient capital to offset early-stage losses
and sustain aggressive growth. On April 26, ,
2023 Vingroup and its founder Pham Nhat
Vuong signed a commitment to further strengthen VinFast’s financial foundation: On
April 26, 2023, Vingroup, VinFast Joint Stock Company and Mr. Pham Nhat Vuong
signed a commitment agreement. Pham Nhat Vuong personally contributed USD 1
billion, and Vingroup provided a non-refundable grant of USD 500 million and a loan
of USD 1 billion with a maximum term of five years. This level of financial support not
only secures VinFast’s short-term expansion but also increases investor confidence in its long-term viability.
Beyond capital, VinFast is developing a complete EV ecosystem, including a
nationwide charging network in Vietnam and partnerships to expand charging and service
infrastructure abroad. For example, in India, the company announced a $2 billion
investment in a Tamil Nadu factory projected to produce up to 150,000 vehicles annually,
aiming to supply both the domestic market and exports across South Asia. In Indonesia,
its planned assembly operations target a market expected to exceed 2 million annual EV sales by 2030.
- Strength from Large warehouse system:
Vinfast's large warehouse system is one of the Vietnamese automaker's significant
competitive advantages. With modern scale and technology, this system ensures effective PAGE \* MERGEFORMAT 6
storage of thousands of components, spare parts and finished vehicles. This helps Vinfast
flexibly meet production and distribution needs, shortening delivery time to customers. In
addition, the warehouse system also plays an important role in managing product quality,
ensuring strict standards for storage and transportation. Thanks to that, Vinfast not only
improves production efficiency but also affirms its position in the domestic and
international automobile market.
VinFast’s strengths in global expansion are underscored by both quantitative data
and strategic choices that enhance its competitive positioning. Its primary advantage lies
in Vietnam’s cost-efficient manufacturing ecosystem: labor costs in Vietnam average
around 50–60% lower than in China, providing VinFast with a meaningful edge in unit
economics compared to rivals like Tesla or Hyundai. Combined with vertical integration
—where VinFast controls key aspects of design, assembly, and parts production—this
allows the company to streamline supply chains and reduce external dependency.
- Strength from Modern technology in each product:
The manufacturing process at the factory is maximally automated at every stage,
ensuring that each product released to the market meets and exceeds the strictest quality standards. Specifically
, the entire welding and painting process will be 95-100%
automated by robots imported from leading European manufacturers. The assembly and
finishing of vehicles are carried out on a modern production line imported from Japan,
with strict control over every small detail thanks to 4.0 technology and cloud computing.
The system for testing finished vehicles is also imported from Europe, connecting
production data to closely manage product quality.
VinFast also differentiates itself through affordability: its EV models are priced
significantly lower than most Western competitors, with entry-level vehicles in Vietnam starting below
$30,000, appealing strongly to cost-conscious buyers. Its flexible
distribution model—using both direct-to-consumer channels and dealer partnerships—
further improves accessibility in diverse markets. Collectively, these strategies and data
points demonstrate that VinFast is not just positioning itself as another EV entrant but as
a volume-driven, cost-leadership player aiming to dominate in fast-growing, price-
sensitive markets while gradually scaling up its presence in developed economies. PAGE \* MERGEFORMAT 6
2.5.2. Issues and Challenges in implement the global expansion strategies.
- Key problems faced by the company:
Consumer concerns: As a new player in the global electric vehicle (EV) industry,
VinFast faces avariety of issues that could impact the company's expansion, financial
performance, and competitive position. These issues might stem from high production
costs, high advertising costs, and brand awareness issues.
The given bar chart illustrates the factors that users are concerned about when
choosing an electric car in Vietnam in 2024. Overall, price and design were the most
talked about factors, while aspects like appearance and branding received much less
attention. This suggests that practical and aesthetic considerations dominate consumer priorities.
As we can see, price was the top concern, with 39,842 mentions, closely followed
by design with 38,116. These two categories far outpaced all others, suggesting that
affordability and appearance were the main drivers of consumer interest.
This was followed by battery and charging infrastructure, with 18,720 mentions,
indicating a strong perception of EV usability. Performance 16,535 was also a notable
factor, while interior features received 7,150 mentions. PAGE \* MERGEFORMAT 6
Service quality (5,823), safety (2,393), and brand (2,201) were moderate concerns,
suggesting that while important, they were secondary considerations. Finally, exterior
design was the least discussed topic, with just 353 mentions.
About VinFast, first and foremost, VinFast may face high production costs because
battery technology accounts for more than 50% of the cost of its EVs, which might make
it hard for the company to balance between affordable prices and high-quality products.
Moreover, if VinFast wants to expand factories or service centers in developed countries
such as the US and European countries that have potential customers, it could require
large investments. However, the top customer's concern is price, so it might be a big
challenge for the brand to compete with other famous EV brands from the US or Europe,
even cheap Chinese electric cars.
In addition, vehicle safety is also a factor that customers should be concerned
about. Euro NCAP has conducted safety tests on the VinFast VF 8, a high-end version of
the company with full safety features and technology. According to Linh (2023), in terms
of the overall score, the VinFast VF 8 achieved 4 Euro NCAP safety stars. This result is
not bad but lower than the 5-star Euro NCAP and 5-star NHTSA target set by the
Vietnamese automaker at the time of launching this D-class electric crossover.
Market performance: Established brands such as Tesla, Volkswagen, and BYD
will also increase competition for a new brand like VinFast. For example, Tesla has been
actively implementing discount campaigns to boost sales and remain competitive in the
evolving electric vehicle (EV) industry (Carter, 2025), which might also affect VinFast
and make it more difficult for it to attract customers. PAGE \* MERGEFORMAT 6
The bar graph illustrates the number of EVs from different brands sold in the US in
2024. First and foremost, the EV sales from Tesla stood out as the highest at 633,800
cars. It was followed by Ford and Rivian with total sales of 97,900 and 51,600 cars,
respectively. While VinFast is a new and young electric car, it might face the lowest sales
at 927 cars among the five brands from other countries. At the same time, VinFast's brand
recognition and consumer confidence are still limited (Phan et al., 2022). Outside of
Vietnam, VinFast is still a new and young electric vehicle brand. Therefore, consumers
are still hesitant about the reliability of the brand as well as the quality of the products for
long-term use (Nguyen & Pham, 2024).
- Internal and external factors affecting performance:
One business currently facing significant financial difficulties is VinFast,
which is a Vietnamese electric vehicle (EV) manufacturer. Although the company has
shown strong growth potential, it is still reporting key accounts. Therefore, both internal
and external factors contribute to the financial difficulties of VinFast.
From an internal perspective, high production and operating costs can prevent
VinFast from having enough production volume to reduce costs like Tesla or BYD. In
addition, the cost of a VinFast electric car depends on external suppliers, which increases
the price pressure on the company. In addition, VinFast is still a new brand globally, so it PAGE \* MERGEFORMAT 6
is more difficult to attract customers. Compared to established brands such as Toyota or
Ford, VinFast has fewer service centers, which reduces customer confidence and may
impact its market sales. One of the key internal factors affecting the company is the
challenge of supply chain and production. VinFast relies on foreign manufacturers
for many key components, including batteries and chips. According to VinFast (2021),
disruptions to the global chip supply chain could impact vehicle production times and
software quality, which could damage VinFast's reputation.
The External challenges are due to competition and regulatory hurdles and the
established company competes directly with brands such as Volkswagen, Hyundai, and
Toyota, as well as low-cost Chinese electric vehicle (EV) markers that can compete on
price. One major external factor that has affected VinFast is the traffic accident
scandal. For instance, according to Valdes-Dapena (2024), in California, a serious car
accident occurred that killed four people in a VinFast electric SUV , a car with an
autopilot feature that the owner had previously complained about. The VinFast VF8,
produced by the Vietnamese automaker founded in 2017, went off the road and crashed
into a utility pole and a tree before catching fire. According to the complaint, the owner
complained about the performance of the SUV's autopilot system, although it is unclear
whether that was a factor in the accident. It is unclear whether the car's Advanced Driver
Assistance features were involved in the fatal crash. NHTSA has investigated
multiple incidents involving vehicles from several automakers, including Tesla and Ford,
where ADAS systems were in use at the time. This scandal might cause VinFast to lose
several potential customers because of the doubt about safety. Moreover, macroeconomic
concerns such as increasing raw material costs, inflation, or global economic issues have
added to the headwinds. So, a key component in electric vehicle batteries has experienced
price movements, which is increasing manufacturing costs.
2.6. Recommend some other effective global expansion strategies that Vinfast has not used yet.
- Forming strategic alliances and global partnerships: Rather than
pursuing development independently , VinFast could deepen
collaborations with global technology corporations (e.g., Google, Nvidia, or battery PAGE \* MERGEFORMAT 6