2.

Situational Analysis

2.1. Company Analysis

VinFast Auto Ltd produces automobiles and motor vehicles in addition to conducting
leasing services, selling cellphones, and other connected ventures. The business
creates high-end electric vehicles (EVs), electric scooters, and electric buses. A-
through E-segment SUVs that are entirely new and entirely electric make up the
company's first EV product line. Automobiles, E-scooters, Spare Parts & Aftermarket
Services, and Automobiles are the three reportable segments for the company (3). The
design, development, production, and sale of vehicles and electric buses are all
included in the segment for automobiles. The design, development, production, and
sale of e-scooters are all included in the e-scooter segment. The Spare parts &
Aftermarket services segment includes the provision of aftermarket services for cars
and e-scooters as well as the selling of spare parts.(1)

A. Tangible resources

Physical resources: In order to accelerate the process of becoming a worldwide

brand, the Vietnamese automaker, according to Automotive News Europe, has fully
utilized resources from Europe.

Monetary resources: Vingroup will have invested VND 12,847 billion in VinFast by
the end of September 2019, in addition to lending the company tens of trillions of
dollars through loans with subsidiaries. To raise money, VinFast Manufacturing and
Trading Co., Ltd recently made frequent announcements about the issue of bonds.
This corporation has recently issued and raised bonds totaling more than 9,000 billion
dong over the course of a month.

B. Intangible resources

Experience in the international market: Despite the fact that it has only recently
entered the market. However, this Vietnamese automaker has proven its capability and
tenacity. The strategic business message, however, is quite stark and drastic: You
must be quick if you want to succeed. It is evident that Vinfast has a short career
history but a stellar reputation.

Brand image: After first hiring ItalDesign and Pininfarina, two well-known Italian
designers, VINFAST then offered the Vietnamese public the chance to vote for their
favorite designs via a poll. Customers will undoubtedly be receptive to the designs
VINFAST chooses because this is a really smart business strategy. In the automotive
quality platform, VINFAST has collaborated with well-known organizations on a
global scale, including Magna Steyr and Bosch, AVL, ZF, GROB, Thyssenkrupp,
AVL and MAG, etc. In addition to bringing outstanding quality, that world helps the
people develop a positive perception of quality. Following that, VINFAST is putting
strong communication plans into place to position itself as a leading and innovative
producer in the domestic car sector rather than just "playing rich" or "snatching" (1)

C. Organizational structure

VinFast, a Vietnamese automotive manufacturer, had the following organizational

structure:
a. Board of Directors: This would typically include top-level executives and key
decision-makers responsible for the overall strategic direction of the company.
b. Executive Team: This team consists of high-level executives responsible for
various departments such as finance, operations, marketing, and engineering.
c. Departments and Divisions: These may include Research and Development,
Manufacturing, Marketing and Sales, Finance, Human Resources, and more.
d. Production and Assembly Plants: VinFast has manufacturing facilities for vehicle
assembly, which are essential parts of its organizational structure.

f. Global Offices and Representatives: If VinFast was expanding internationally, it

would have regional offices and representatives responsible for operations and sales in
those regions (VinFast , 2021)

2.2. Market analysis

2.2.1. Business Environment analysis

Political/Legal/Institutional Environment:

In the US, regulations on safety standards and environmental protection are very
strict. VinFast needs to comply with these regulations to ensure the safety and
environmental protection of its electric vehicles. In addition, the US President can
issue policies to support electric vehicles, helping VinFast strengthen its competitive
advantage.

In an effort to promote the development of the electric car industry, the US and
Europe have introduced the following four "favorable" policies:

1. A new commitment to neutralizing emissions promotes the development of the

electric car market.

2. "Favorable" tax policy for electric cars.

3. Build a system of electric vehicle charging stations.

4. Innovate technology and business models to develop the electric car market.

Economic environment:

The US auto market is a fiercely competitive market, where there is competition

from many different automakers. American consumers have a high average income;
however, the prices of electric vehicles are still quite high compared to other types of
motor vehicles.

The factor when considering buying an electric car is income. When buying an
electric car, they already have full maintenance policies, charging information at home
and related costs when the car encounters damage (Frenkel, 2022).

Social and cultural environment:

The social aspects related to electric vehicles are mainly about consumer preferences.
Young people today are increasingly aware of environmental protection, so the
preference for using electric cars over traditional cars is becoming more and more
popular (Frenkel, 2022).

In some cities, electric vehicles are popular and are encouraged to use to reduce
air pollution. VinFast can create its brand and find potential customers in these
cities.

Demographic environment:

According to statistics, about 80% of Americans use personal cars, this is an

advantage for VinFast when entering the US market.

Demand for electric vehicles is increasing and is expected to continue to increase, this
helps VinFast meet customer needs and create a new business opportunity in this
market.

Technology environment:

The development of electric vehicle technology is happening very quickly and

competition is fierce. VinFast needs to focus on research and development of
advanced technologies to compete with rivals.

Because of the battery usage mechanism of electric vehicles, the technology industry
is mainly related to electric batteries and production costs. Advances in the battery
industry have reduced the time needed to charge and this makes for lower costs and
greater convenience (Frenkel, 2022).

Accordingly, the EPA notes that the VF 9 can travel 330 miles (Eco version) and
291 miles (Plus version). This level is equivalent to a maximum of 530km, higher
than the initial announcement of the Vietnamese electric car manufacturer (272 miles
and 262 miles, respectively) (Linh, 2023).

Natural environment:

VinFast needs to ensure that its electric vehicle models meet the requirements of the
US Domestic Emissions Standards to ensure compliance with US environmental
protection regulations

Physical environment:

America's transportation infrastructure is well-developed, meeting the needs of

the majority of the population. However, VinFast needs to check whether their car
models are suitable for US transportation infrastructure.

2.2.2. Competitor Analysis (in country of investment)

The US market saw a resurgence in new automobile sales, hitting more than 1.337
million units in September, decreasing by 0.3% over the month, according to data
from MarkLines, the top marketing business in the world. but dramatically climbed by
19% over the exact same time period in 2022. In the meantime, 111.69 million
vehicles have been sold globally in the first nine months of 2023, up 13.7% from the
same period in the previous year.(1)

The sales of many "big companies" including Toyota, Ford, Honda, Hyundai, and
others all increased. The industry's highest automobile inventory levels over the
previous two years and rising incentives are to blame for this. Particularly, the US is
still one of the world's major auto markets and the most important international market
for VinFast, a Vietnamese electric vehicle manufacturer. VinFast sales growth is aided
in part by the strengthening US market.(2)

More specifically, VinFast sold 385 electric vehicles in September, bringing the year's
total number of vehicles sold in the US market to 2,009 units. Since VinFast began
selling in March, sales have stayed steady at around 400 units for four straight months.
(1)
 (1)

Vinfast VF8 and VF9 will have to compete with electric vehicles built in Korea,
namely Kia and Hyundai, in addition to electric vehicles made in America like Tesla
or Ford. As the first step in its production and marketing strategy for electric vehicles
in the US market, VinFast and the North Carolina state legislature signed a
memorandum of understanding on March 29th to build the Vietnamese automaker's
first factory in the United States. VinFast previously disclosed the selling prices for
the VF8 and VF9 models in the US market as $41,000 and $56,000, respectively,
excluding taxes, at the CES 2022 exhibition. When they are formally launched in the
US, the VF8 and VF9 will compete against the several electric car models already
available there.(3)

Ford Mustang Mach-E

The Ford Mustang Mach-E, which goes by the name Mustang, was introduced at
the tail end of 2019 and is in fact the company's first electric SUV. The Select,
Premium, California Route 1, and GT trim levels are available in the US, with prices
ranging from $42,895 to $59,900. The electric motor in the Ford Mustang Mach-E
Select has a capacity of 266 horsepower and a maximum torque of 430 Nm. This
version's battery pack has a 68 kWh consumption capacity, giving the vehicle a range
of 370 kilometers after a full charge.

The second model is the $47,600 Mach-E Premium, which has the same electric
powertrain but more modernized hardware. The California Route 1 variant, which
costs $50,000 and has an electric motor with 290 horsepower and 430 Nm of torque,
is the next option. The vehicle's 88 kWh battery pack enables it to travel 490
kilometers on a single charge. The most potent model is the GT, which retails for
$59,900 and is equipped with an electric motor that can produce 459 horsepower and
985 Nm of torque. The battery pack on the automobile has a capacity of 88 kWh,
giving it a 420 km driving range.

Tesla Model Y

The Tesla Model Y 2021's chassis resembles the Model 3's by 75%. Customers
may therefore quickly spot exterior design similarities between the Model Y and
Model 3 when taking a broad view.

There are now 4 versions of the Tesla Model Y; the base model has a 271
horsepower motor, a range of 370 kilometers per charge, and a top speed of 193
kilometers per hour. With a 345 horsepower engine, the Long Range AWD variant
can travel 482.8 kilometers at a top speed of 209 kilometers per hour. There are two
450 horsepower high-performance models available, focusing on maximizing speed
and engine power with a maximum range of 450 kilometers.The Standard Range,
despite being the least expensive model, is nonetheless powerful enough to
outperform conventional SUVs. With a maximum speed of 193 km/h, the automobile
accelerates from 0 to 96 km/h in just 5.9 seconds.The Model Y series' most advanced
Performance model has a 450 km range. "Big brother" Performance accelerates from 0
to 96 km/h in under 3.5 seconds and can reach a top speed of 241 km/h. (4)

Volkswagen ID.4 GTX

Under the car's floor is an 82 kWh battery that works in conjunction with an
electric motor in the Volkswagen ID.4 base model. Rear-wheel drive and 201
horsepower and 309 Nm of torque are produced by the combination. It is well known
that Volkswagen's MEB electric vehicle chassis architecture serves as the foundation
for ID.4's functionality.(5)

Volkswagen ID.4 GTX 2021's premium model has two electric motors with a
combined 299 horsepower. Each electric motor drives either the front or rear axle and
is connected with a single-speed gearbox. As a result, the Volkswagen ID.4 GTX
2021 has an electronically limited top speed of 180 km/h and can accelerate from 0 to
100 km/h in 6.2 seconds (4)

The ID.4 GTX has a 77 kWh battery pack as its power source, which enables it to
travel 480 km after being fully charged. The driver just needs to wait around 30
minutes if using a 125 kW fast charging system to travel another 300 km.
 The car has a wheelbase of 2,765 mm and measures 4,582 mm long, 1,852 mm
wide, and 1,616 mm high. The 2021 Volkswagen ID.4 GTX is 10 mm shorter and 13
mm lower than the standard ID.4. (4)