I.

Introduction

1. Background of VinFast:
VinFast is a Vietnamese automotive company that was established in 2017 as a subsidiary of
Vingroup, a leading conglomerate in Vietnam. The company aims to become a major player in
the global automotive industry by producing high-quality vehicles with cutting-edge
technology. VinFast's vision is to contribute to the development of Vietnam's automotive
industry and promote the country's image on the international stage. Since its inception,
VinFast has made significant strides in designing, manufacturing, and marketing electric cars,
electric motorcycles, and electric buses.

2. Purpose of the report and its significance:

The purpose of this report is to conduct a PESTLE analysis of VinFast, examining the various
external factors that can impact the company's operations and strategic decision-making. By
analyzing the political, economic, social, technological, environmental, and legal factors, we
can gain a comprehensive understanding of the challenges and opportunities faced by VinFast.
Additionally, this report aims to highlight the significance of integrating the marketing and
finance functions within VinFast to effectively address these external threats. By exploring the
strategies and initiatives employed by VinFast in the marketing and finance domains, we can
identify key insights and best practices that can contribute to the company's success in a
dynamic and competitive market.

II. PESTLE Analysis of VinFast

A. Political Factors

1. Government regulations and policies impacting VinFast's operations:

VinFast's operations are subject to various government regulations and policies that can
significantly influence its business environment. One key political factor affecting VinFast is
the government's support for the development of the domestic automotive industry. The
Vietnamese government has implemented policies to promote the growth of the automotive
sector, including tax incentives, investment subsidies, and the establishment of special
economic zones for automotive manufacturing (Truong & Nguyen, 2021). These policies
create favorable conditions for VinFast to expand its operations and invest in research and
development.

On the other hand, political instability and changes in government policies can pose risks to
VinFast's operations. Shifts in regulations, trade policies, or taxation can impact the
company's production costs, supply chain, and market access (Thao, 2020). Additionally,
political tensions between Vietnam and other countries can affect VinFast's ability to import
crucial components or export its products to international markets.

2. Integration of marketing and finance to address political threats:

To address political threats, VinFast can integrate its marketing and finance functions in
several ways. Firstly, the marketing department can closely monitor changes in government
regulations and policies that may impact the company's operations. This information can be
shared with the finance department to assess the financial implications and identify necessary
adjustments to budgets, forecasts, and investment plans.

Furthermore, collaboration between marketing and finance can help VinFast navigate political
challenges by developing effective lobbying strategies, engaging with government
stakeholders, and participating in industry associations to influence policy-making processes
(Anh, 2020). By aligning marketing messages with the government's objectives and
demonstrating the economic and social benefits of VinFast's operations, the company can
build positive relationships with policymakers and mitigate potential political risks.

B. Economic Factors

1. Economic conditions influencing VinFast's growth and profitability:

VinFast's growth and profitability are significantly influenced by economic factors. Economic
conditions such as GDP growth, consumer spending, inflation rates, and exchange rates can
impact the demand for automobiles and the affordability of VinFast's products (Hoang & Vu,
2021). A strong and stable economy with rising disposable incomes generally supports the
growth of the automotive industry.

For instance, during periods of economic downturn or recession, consumers may reduce their
discretionary spending on vehicles, leading to a decline in demand for VinFast's products.
Similarly, unfavorable exchange rates can increase the costs of imported components and
affect the company's profitability (Nguyen, 2020). Moreover, fluctuations in oil prices can
impact the demand for electric vehicles, which are a key focus for VinFast (Nguyen, 2021).

2. Marketing and finance strategies to mitigate economic threats:

To mitigate economic threats, VinFast can employ marketing and finance strategies. Firstly,
the marketing function can adapt its product portfolio and pricing strategies to align with
changing economic conditions. For example, during an economic downturn, VinFast can
emphasize cost-effective models or introduce financing options to make its vehicles more
affordable to consumers. Additionally, targeted marketing campaigns can focus on the value
proposition of VinFast's products, highlighting features such as fuel efficiency and cost
savings.
From a financial perspective, VinFast can implement risk management strategies to mitigate
economic volatility. This may include diversifying its product offerings to cater to different
market segments and geographic regions, reducing dependence on a single market (Hoang &
Vu, 2021). Additionally, the finance function can optimize working capital management,
improve cost controls, and establish financial contingency plans to navigate economic
uncertainties (Nguyen, 2020).

C. Social Factors

1. Changing consumer preferences and societal trends affecting VinFast:

VinFast's operations are influenced by changing consumer preferences and societal trends.
Consumer preferences in the automotive industry have been shifting towards environmentally
friendly and sustainable transportation options (Ngo et al., 2021). This trend is driven by
increasing awareness of climate change and the desire for eco-friendly vehicles. Consumers
are also placing greater importance on advanced technology, connectivity, and safety features
in their vehicles.

Moreover, societal trends such as urbanization, the rise of ride-sharing services, and the
sharing economy impact VinFast's business model (Nguyen & Nguyen, 2021). The demand
for compact and electric vehicles suitable for urban environments has been increasing.
Additionally, the younger generation, particularly millennials and Gen Z, exhibit different
purchasing behaviors, favoring digital experiences, and seeking brands that align with their
values of sustainability and social responsibility.

2. How marketing and finance can respond to social threats:

To respond to social threats, VinFast can leverage marketing and finance strategies. In terms
of marketing, VinFast can develop and promote eco-friendly and technologically advanced
vehicles that meet the changing preferences of consumers. This can involve highlighting the
sustainability features, emphasizing the use of renewable materials, and showcasing the
company's commitment to reducing carbon emissions (Nguyen & Nguyen, 2021).
Additionally, VinFast can leverage digital marketing channels and social media platforms to
engage with younger consumers and create brand loyalty.

From a financial perspective, VinFast can allocate resources for research and development to
enhance the technological capabilities of its vehicles. This can include investing in electric
vehicle technology, autonomous driving features, and smart connectivity options. By staying
at the forefront of innovation, VinFast can attract environmentally conscious and tech-savvy
consumers.
D. Technological Factors

1. Technological advancements impacting VinFast's competitiveness:

VinFast's competitiveness is heavily influenced by technological advancements in the
automotive industry. The emergence of electric vehicles (EVs) and autonomous driving
technologies has significantly reshaped the market landscape. Electric vehicles offer
environmental benefits and are gaining popularity due to increasing concerns about climate
change and emissions (Tran et al., 2021). Autonomous driving technologies have the potential
to transform mobility and reshape consumer expectations regarding convenience and safety.

Furthermore, advancements in connectivity and digitalization have led to the rise of smart
vehicles and integrated mobility solutions. Consumers now expect seamless connectivity,
interactive interfaces, and personalized experiences in their vehicles (Vu & Nguyen, 2020).
Therefore, VinFast needs to stay abreast of technological developments to remain competitive
and meet customer demands.

2. Marketing and finance initiatives to address technological threats:

To address technological threats, VinFast can employ marketing and finance initiatives. In
terms of marketing, VinFast can position itself as an innovative and technology-driven brand.
This can be achieved by highlighting the technological features and advancements in its
vehicles, such as electric drivetrains, intelligent connectivity, and advanced safety systems
(Vu & Nguyen, 2020). VinFast can leverage digital marketing strategies and online platforms
to showcase its technological capabilities and engage with tech-savvy consumers.

From a financial perspective, VinFast can allocate sufficient resources for research and
development (R&D) activities to drive technological innovation. Investment in R&D can lead
to the development of advanced technologies, improved vehicle performance, and cost
optimization (Tran et al., 2021). Additionally, partnerships with technology companies,
research institutions, and startups can provide access to expertise and accelerate technological
advancements.

E. Environmental Factors

1. Environmental concerns and sustainability in the automotive industry:

Environmental concerns and sustainability have become critical factors in the automotive
industry. The industry is under increasing pressure to reduce carbon emissions, promote
energy efficiency, and adopt sustainable practices throughout the vehicle lifecycle (Nguyen et
al., 2020). Governments worldwide are implementing stricter regulations and emission
standards, which directly impact automotive manufacturers like VinFast.
Additionally, consumers are becoming more environmentally conscious and are demanding
eco-friendly vehicles. They are actively seeking out electric vehicles (EVs) and other low-
emission alternatives, considering the environmental impact of their transportation choices
(Tran et al., 2020). Therefore, VinFast needs to proactively address environmental concerns
and incorporate sustainability into its operations.

2. Marketing and finance approaches to tackle environmental threats:

To tackle environmental threats, VinFast can employ marketing and finance approaches. In
terms of marketing, VinFast can develop a strong sustainability-focused brand image. This
can be achieved by highlighting the environmental benefits of its EVs, such as reduced carbon
emissions, and emphasizing its commitment to sustainable manufacturing practices (Nguyen
et al., 2020). VinFast can also engage in green marketing campaigns, educating consumers
about the advantages of EVs and promoting the company's environmental initiatives.

From a financial perspective, VinFast can invest in sustainable technologies and

infrastructure. This includes allocating funds for research and development of electric vehicle
technologies, battery advancements, and charging infrastructure (Tran et al., 2020). By
integrating sustainability into its financial strategy, VinFast can position itself as a leader in
the development and production of eco-friendly vehicles.

F. Legal Factors

1. Legal and regulatory issues affecting VinFast's operations:

VinFast's operations are subject to various legal and regulatory issues that can impact its
business. These issues include compliance with safety standards, emissions regulations,
intellectual property rights, import/export restrictions, and consumer protection laws (Le,
2021). Non-compliance with these regulations can result in fines, legal disputes, and
reputational damage for VinFast.

For example, in the automotive industry, strict safety and emissions standards are enforced to
ensure vehicle and occupant safety as well as environmental protection. VinFast must ensure
that its vehicles meet these standards and obtain the necessary certifications to operate in
different markets. Additionally, intellectual property protection is crucial for VinFast's
innovations and technology developments, as it helps safeguard against patent infringements
and maintain a competitive advantage.

2. Integrating marketing and finance to navigate legal threats:

To navigate legal threats, VinFast can integrate marketing and finance strategies. From a
marketing perspective, VinFast can ensure that its advertising and promotional activities
comply with relevant laws and regulations. This can involve accurate representation of
product features, clear disclosure of pricing and financing terms, and compliance with
consumer protection laws (Le, 2021). Implementing transparent and ethical marketing
practices can help mitigate legal risks and build trust with consumers.

From a financial standpoint, VinFast can establish robust risk management processes and
internal controls to ensure compliance with legal requirements. This includes financial
reporting compliance, tax compliance, and adherence to import/export regulations. The
finance function can collaborate closely with legal experts to identify potential legal risks and
develop strategies to mitigate them. Effective financial planning and governance can help
VinFast navigate complex legal landscapes and avoid penalties or legal disputes.

III. Integration of Marketing and Finance to Address Threats

A. Marketing Function

1. Marketing strategies to counter specific threats identified in the PESTLE analysis:

VinFast can employ various marketing strategies to counter specific threats identified in the
PESTLE analysis. These strategies include:

a. Political Threats: In response to political threats such as government regulations and

policies, VinFast can engage in lobbying efforts and advocacy to shape favorable policies that
support the growth of the electric vehicle industry. Additionally, VinFast can highlight its
compliance with regulatory requirements and position itself as a responsible corporate citizen.

b. Economic Threats: To mitigate economic threats, VinFast can implement pricing strategies
and promotional campaigns that emphasize the cost-effectiveness of electric vehicles.
Offering competitive pricing, financing options, and incentives can help attract customers and
increase market share. VinFast can also explore partnerships with financial institutions to
provide favorable financing terms to potential buyers.

2. Examples of marketing initiatives implemented by VinFast to address threats:

VinFast has implemented several marketing initiatives to address threats in the automotive
industry. Some examples include:

a. Branding and Promotion: VinFast has focused on building a strong brand identity that
emphasizes its commitment to innovation, technology, and sustainability. The company has
launched extensive marketing campaigns highlighting the advanced features and
environmental benefits of its electric vehicles. VinFast has also collaborated with popular
influencers and celebrities to enhance brand visibility and credibility.

b. Digital Marketing and Customer Engagement: VinFast has leveraged digital marketing
channels to reach a wider audience and engage with potential customers. The company has
created interactive online platforms where customers can explore vehicle options, customize
their preferences, and book test drives. VinFast has also invested in social media marketing
and online advertising to target specific customer segments effectively.

B. Finance Function

1. Financial strategies and tactics employed to mitigate threats identified in the PESTLE
analysis:
To mitigate threats identified in the PESTLE analysis, VinFast can employ various financial
strategies and tactics. These include:

a. Political Threats: In response to political threats, such as government regulations and

policies, VinFast can allocate resources for legal compliance and regulatory affairs. This
includes hiring legal experts and establishing internal processes to ensure adherence to
applicable laws and regulations. VinFast can also invest in government relations activities to
navigate the political landscape effectively.

b. Economic Threats: To mitigate economic threats, VinFast can implement cost control
measures and optimize financial resources. This may involve assessing and optimizing the
supply chain to reduce costs, negotiating favorable terms with suppliers, and implementing
efficient inventory management systems. Additionally, VinFast can diversify its revenue
streams by exploring new markets or introducing innovative financial products and services.

2. Case studies showcasing financial decision-making to address threats:

While specific case studies on VinFast's financial decision-making to address threats may be
limited, the following hypothetical examples can illustrate potential approaches:

a. Case Study 1: In response to technological threats, VinFast decides to invest in research and
development (R&D) to enhance its technological capabilities. By allocating a significant
portion of its financial resources to R&D, VinFast aims to develop cutting-edge electric
vehicle technologies and maintain a competitive edge in the market. This decision reflects
VinFast's commitment to innovation and its proactive approach to address technological
challenges.
b. Case Study 2: To address environmental threats, VinFast decides to issue green bonds to
fund its sustainable initiatives. Green bonds are financial instruments specifically designed to
raise funds for environmentally friendly projects. By issuing green bonds, VinFast can attract
socially responsible investors and demonstrate its commitment to sustainability. The proceeds
from the green bonds can be used to support the development and production of electric
vehicles and the establishment of eco-friendly manufacturing practices.

IV. Conclusion

A. Recap of the PESTLE analysis and its implications for VinFast:

The PESTLE analysis conducted on VinFast highlights the various external factors
influencing the company's operations. Political factors, including government regulations and
policies, can impact VinFast's operations and require proactive measures to ensure
compliance. Economic factors, such as economic conditions and market fluctuations, can
affect VinFast's growth and profitability. Social factors, including changing consumer
preferences and societal trends, necessitate adjustments in VinFast's marketing and finance
strategies. Technological advancements and environmental concerns also pose both challenges
and opportunities for VinFast. Finally, legal factors present regulatory and compliance issues
that VinFast needs to navigate effectively.

B. Significance of integrating marketing and finance in addressing threats:

The integration of marketing and finance functions is crucial in addressing threats identified
in the PESTLE analysis. By aligning marketing and finance strategies, VinFast can develop
comprehensive approaches to mitigate risks and leverage opportunities. Marketing can
effectively communicate VinFast's value proposition, address consumer concerns, and build a
strong brand image. Finance can support these efforts by allocating resources, optimizing
financial operations, and making strategic investment decisions. The integration of marketing
and finance ensures a coordinated response to external threats and enhances VinFast's ability
to adapt to changing market dynamics.

C. Future outlook and recommendations for VinFast:

Looking ahead, VinFast should continue to prioritize sustainability, innovation, and customer-
centric strategies. This includes further investments in research and development to stay at the
forefront of technological advancements in the automotive industry. VinFast should also
enhance its marketing efforts by leveraging digital platforms, engaging with consumers, and
differentiating itself through eco-friendly messaging. Financially, VinFast should maintain
strong financial governance, closely monitor economic conditions, and explore strategic
partnerships to mitigate risks and drive growth.
Additionally, VinFast should proactively monitor and adapt to changes in the legal and
regulatory landscape, ensuring compliance and mitigating legal risks. Finally, the company
should continue to focus on building strong government relationships and advocating for
policies that support the growth of the electric vehicle industry.

In conclusion, by addressing the political, economic, social, technological, environmental, and

legal factors, and by integrating marketing and finance functions, VinFast can navigate the
external challenges, seize opportunities, and position itself as a leader in the automotive
industry.

References legal:
Le, Q. H. (2021). Factors Affecting Business Performance in the Automobile Industry in
Vietnam. International Journal of Science and Business, 5(4), 204-218.

References environmental:
Nguyen, P. V., Vu, T. T., & Ho, M. T. (2020). Factors Influencing the Development of Green
Vehicles in Vietnam: A Perspective from Sustainable Development. European Journal of
Sustainable Development, 9(3), 361-372.

Tran, T. T., Nguyen, Q. T., Nguyen, D. T., & Ngo, T. T. (2020). Factors Affecting Consumers'
Purchasing Intention of Electric Vehicles: A Study in Vietnam. Journal of Asian Finance,
Economics, and Business, 7(10), 587-595.

References tech:
Tran, T. T., Nguyen, Q. T., Nguyen, D. T., & Ngo, T. T. (2021). An Empirical Study on
Consumer Willingness to Purchase Electric Vehicles in Vietnam. Asian Journal of Business
Research, 11(3), 32-46.

Vu, T. T., & Nguyen, D. V. (2020). How Technological Innovation Affects the Competitive
Advantage of Vietnamese Automotive Firms. International Journal of Business and
Management, 15(8), 1-12.

References social:
Ngo, T. T., Nguyen, P. V., & Ho, M. T. (2021). Green Initiatives in the Vietnamese
Automotive Industry: An Exploratory Study. Sustainability, 13(11), 6235.
Nguyen, V. H., & Nguyen, V. A. (2021). How Corporate Social Responsibility Practices
Influence Customer Loyalty in the Automotive Industry: The Mediating Role of Corporate
Image. Journal of Asian Finance, Economics, and Business, 8(4), 635-643.

References economic:
Hoang, T. H., & Vu, T. T. (2021). The Factors Affecting Vietnamese Automotive Industry: An
Empirical Study. International Journal of Innovation, Creativity and Change, 15(1), 206-224.

Nguyen, V. (2020). The Role of Strategic Finance in Sustainable Competitive Advantage:

Evidence from Vietnam's Automobile Industry. International Journal of Innovation, Creativity
and Change, 11(1), 679-695.

Nguyen, V. (2021). Vietnam's Electric Vehicle Industry: Opportunities, Challenges, and Policy
Implications. International Journal of Energy Economics and Policy, 11(3), 386-393.

References political:
Anh, T. T. T. (2020). The Role of Corporate Political Strategy in Corporate Performance: A
Case Study of VinFast Vietnam. International Journal of Economics, Commerce and
Management, 8(9), 125-135.

Thao, P. T. (2020). Determinants of Competitive Advantage for Vietnam Automobile Industry.

Journal of Asian Business Strategy, 10(2), 35-44.

Truong, P. T., & Nguyen, N. C. (2021). The Development Orientation of the Automotive
Industry in Vietnam. Journal of Open Innovation: Technology, Market, and Complexity, 7(2),
63.