Vinfast challenges Chinese targeting Southeast Asia’s EV market

Vinfast, a Vietnamese electric vehicle (EV) producer, is contending with Chinese automobile manufacturers to market its EVs within Southeast Asia, leveraging the ASEAN Free Trade Agreement (AFTA). The firm eyes Thailand as the initial export venue, based on the country’s fast-growing EV market which promises lucrative business opportunities, according to Vu Dang Yen Hang, chief executive of Vinfast Auto (Thailand).

“The Thai government’s attractive incentive packages for the EV industry have prompted Vinfast’s expansion into the country.”

Currently, discussions are underway with the Board of Investment regarding investment privilege packages.

Though the decision to build an EV assembly plant in Thailand remains pending, the company is keen on expanding its EV sales within the ASEAN region. This strategy is due to the tariff-free advantages when exporting to countries under AFTA.

Established in 2017, Vinfast began producing EVs in 2021. The firm is constructing EV factories in the US state of North Carolina and India and has plans for a new plant in Indonesia, reported Bangkok News.

Hang revealed Vinfast’s ambitious plan to export EVs to 50 countries within the year. In addition to the US, Canada, and European nations, the company aims to introduce its electric mobility technology to countries in ASEAN, the Middle East, and Africa.

In Thailand, Vinfast has already established a network of 15 car dealers operating 22 showrooms in locations including Bangkok, Chiang Mai, Khon Kaen, Ubon Ratchathani, Ayutthaya and Chon Buri, said Hang.

“This marks our initial step to introduce EVs in Thailand. Our dealers also see an opportunity to gain from the sustainable transport trend.”

In related news, the Thai market is seeing a rise in loans for EVs, as they are projected to lead the expansion in auto lending this year. Krungsri Auto, a prominent auto loan provider and a Bank of Ayudhya (Krungsri) unit, has projected new EV sales to climb to 100,000 units this year, a significant increase from 76,000 units the previous year.