bTime: 20-30min

tối thiếu 2 ng present

Company
1. Introduction (history/ industry/ loai hinh product/ services/ org ..)
1.1. History of formation and development
VinFast's full name is VinFast Manufacturing and Trading Company Limited (VinFast LLC).
This is a Vietnamese car manufacturer formed in 2017 and is a member company of
VIngroup.

script cho đoạn Milestone:

VinFast was founded in 2017. From 2021, Vinfast gradually enters 5 North American
and European markets and builds its first manufacturing plant in North Carolina in
2022. Also that year, Vinfast opened its first 6 stores in California, and export to the US
electric cars entered the global market with 999 VF8. In August 2023, Vinfast was
officially listed on the stock exchange in the US.

1.2. Industry
Vietnam's auto industry is experiencing robust growth due to rising consumer demand
and investments. However, the industry also faces challenges, such as a shortage of training
resources, infrastructure, and technical staff quality.

In 2022, 3 biggest car brands Toyota, Hyundai and Kia accounted for 54.6% of
Vietnam's auto market sales. Following are names like Mitsubishi with 7.8% market share,
Honda with about 6%, Ford with 5.6%, VinFast 4.5%, Suzuki 3.1% and Isuzu with 2.1%
market share.

1.3. Main activities

- Manufacture of cars and motorcycles including
+ Electric motor cars
+ Gasoline engine cars
+ Electric motorcycles

- VinFast also manufactures machinery, equipment and tools for the automobile
manufacturing process.

- Services:
+ Repair and maintain vehicles for customers
+ Vinfast bus
+ Vinfast taxi
2. Internal & External assessment LOAN

INTERNAL FACTOR
IFE Matrix

Key internal Factors Weight Rating Weighted s

mức độ tđ vào
mứcDN
độ yếu. (how
effective)

Strengths

1. Well-established and extensive distribution network in Vietnam 0.05 3 0.15

2. Strong financial resources 0.1 4 0.4
3. Strong focus on research and development of new products and 0.125 2 0.25
technologies
4. Advanced technology and equipment in its manufacturing 0.05 3 0.15
facilities
5. Strong focus on employee development and training programs to 0.015 1 0.015
improve skills and knowledge
6. Strong commitment to quality control and safety standards 0.005 4 0.02
7. A diverse range of vehicle models (car, motorcycle,..) 0.035 4 0.14
8. Strong brand reputation in the Vietnamese market. 0.01 3 0.03
9. Emphasis on sustainability and environmental protection in its 0.01 2 0.02
operations

Weaknesses
1. Limited experience in the automotive industry 0.175 4 0.7
2. Investment expenses for R&D activities account for a high 0.003 3 0.009
proportion of revenue
3. The brand and reputation are still limited compared to the well- 0.015 3 0.045
known competitors in the automotive market.
4. Depends on external partners to provide key technologies 0.13 4 0.52
and components.
5. Limited experience in managing international operations 0.077 1 0.077
6. Dependence on government support and incentives for 0.027 3 0.081
growth and expansion of the electric car market
7. Limited distribution and dealership network outside of 0.173 2 0.346
 Vietnam
1 2.953

The total weighted score of Vinfast is 2.953, showing that the strategies of Vinfast are to
handle and respond quickly to changes in the internal environment that are taking place.

here is some outstanding strengths

1. Well-established and extensive distribution network in Vietnam: Mạng lưới phân
phối rộng khắp và ổn định tại Việt Nam
https://vinfastauto.com/vn_vi
Extensive system of Showrooms, Distributors and service workshops to meet the needs of
customers, including 150,000 charging ports in 63 provinces and cities.

2. Strong financial resources: Nguồn tài chính mạnh

https://tapchitaichinh.vn/vinfast-duoc-tai-tro-2-5-ty-usd-de-phat-trien.html
Vinfast has a huge advantage that is Vingroup, the treatment for both finance, technology
as
well as age, trust level of customers, the company with Vingroup is extremely large. VinFast
does not have difficulty in investing capital to implement development plans.

3. Strong focus on research and development of new products and technologies: Tập
trung mạnh vào nghiên cứu, phát triển sản phẩm, công nghệ mới
https://theleader.vn/vinfast-dau-tu-hon-1-ty-usd-cho-rd-1670486810703.htm
VinFast đã chi 1,14 tỉ USD cho R&D. Hiện tại, đội ngũ R&D nội bộ lên đến 800 chuyên gia,
which focuses on developing new products and technologies for both domestic and
international markets. They have also partnered with universities and research institutions
to enhance their capabilities.

4. Advanced technology and equipment in its manufacturing facilities: Công nghệ và thiết
bị tiên tiến tại các cơ sở sản xuất của mình
https://xcelerator.siemens.com/global/en/industries/automotive-manufacturing/
references/vinfast.html
VinFast lựa chọn bộ Phần mềm Quản lý Vòng đời Sản phẩm (PLM) của tập đoàn công nghệ
hàng đầu nước Đức Siemens, qua đó có thể phát triển kế hoạch thiết kế các đời xe thế hệ
tiếp theo. Vinfast has implemented a smart factory system, which utilizes cutting-edge
technology and automation to optimize their manufacturing processes. Và Vinfast cũng đã
mua bản quyền sở hữu trí tuệ từ BMW để phục vụ việc phát triển
các dòng xe của hãng.
5. Strong focus on employee development and training programs to improve skills and
knowledge: Tập trung mạnh vào các chương trình đào tạo và phát triển nhân viên để nâng
cao kỹ năng và kiến thức
https://www.vingroup.net/tin-tuc-su-kien/bai-viet/2795/vinfast-hop-tac-voi-i-car-dao-tao-
va-sua-chua-dong-son
Vinfast has established their own Vinfast Talent Academy, which provides training and
development programs for their employees. They have also implemented a performance-
based evaluation system to promote career development and advancement.

6. Strong commitment to quality control and safety standards: Cam kết mạnh mẽ về các
tiêu chuẩn kiểm soát chất lượng và an toàn
https://vinfastauto.com/vn_vi/vinfast-doat-giai-hang-xe-co-cam-ket-cao-ve-toan-asean-
ncap
Vinfast has implemented a comprehensive quality control system that adheres to
international standards, with numerous certifications (including ISO 9001 and ISO 14001), to
demonstrate their commitment to quality and environmental sustainability.
Vinfast won the "new car company with high commitment to safety" award under the
ASEAN NCAP program.

cho vào slide cái dưới này thui còn đọc theo cái trên
On February 16, 2021, the Southeast Asia New Car Assessment Program (ASEAN NCAP)
awarded "New car company with high commitment to safety" to VinFast. With all three car
lines achieving 4 and 5 star certification, VinFast is also a regional brand named in this title.

7. A diverse range of vehicle models: Đa dạng về mẫu mã phương tiện

Vinfast has expanded their product portfolio to include not only cars but also motorcycles,
electric bicycles, and electric buses. This diversification strategy enables them to tap into
different market segments and meet the evolving needs of consumers.

8. Strong brand reputation in the Vietnamese market: Uy tín thương hiệu mạnh
Vinfast is a subsidiary of Vingroup, it inherits from Vingroup a positive brand image.
Vinfast has established a strong brand reputation in the Vietnamese market through
extensive marketing campaigns and strategic partnerships. They have also received
numerous awards and recognition for their products and services, further enhancing their
brand image.

9. Emphasis on sustainability and environmental protection in its operations: Nhấn mạnh

vào tính bền vững và bảo vệ môi trường trong hoạt động của mình
https://www.pwc.com/gx/en/issues/esg/esg-asia-pacific/publications-and-case-studies/
vinfast-group-case-study.html
VinFast creates efficient manufacturing processes to reduce emissions, reuse, and save
energy. Sustainability standards are requirements and evaluation criteria of VinFast for
partners and suppliers.

cho vào slide thui ko đọc ạ

In 2022, Vinfast reaches 23.3 points, among the top ESG rating designated to pure electric
vehicle (EV) companies. VinFast was also the winner of the ‘Corporate Sustainability
Champions’ category in the 2022 ORIGIN Innovation Awards.

and some WEAKNESSes such as

1. Limited experience in the automotive industry - Kinh nghiệm hạn chế trong ngành
ô tô:
VinFast has hired experienced talent from established automakers such as BMW and
General Motors to lead its automotive division. These experienced professionals are likely to
have brought industry knowledge and experience to the company.

2. Investment expenses for R&D activities account for a high proportion of revenue -
Chi phí đầu tư cho hoạt động R&D chiếm tỷ trọng cao trong doanh thu:
VinFast has entered into partnerships with established companies such as Siemens and
Bosch to share the costs of R&D. VinFast also invested in building its own R&D facilities,
which may have helped reduce costs.

3. The brand and reputation are still limited compared to well-known competitors in
the automotive market -Thương hiệu và danh tiếng còn hạn chế so với các đối thủ tên
tuổi trên thị trường ô tô:
While it is undoubtedly famous domestically, people generally do not acknowledge this
brand name in other markets worldwide.

VinFast has invested heavily in marketing and branding activities, including sponsoring
international sporting events such as the 2020 Formula 1 Vietnam Grand Prix.
https://en.vietnamplus.vn/vinfast-announced-as-f1-vietnam-gps-title-sponsor/162093.vnp

4. Depends on external partners to provide key technologies and components - Phụ thuộc
vào các đối tác bên ngoài để cung cấp các công nghệ và linh kiện chính
https://vinfast.vn/vinfast-tich-cuc-don-dau-xu-huong-cong-nghe-o-to-tuong-lai/
https://genk.vn/vinfast-da-bat-tay-voi-nhung-ten-tuoi-nuoc-ngoai-nao-de-tao-ra-nhung-
chiec-xe-dien-cua-rieng-minh-20220110112747046.chn
- For example, Battery cell production - cooperation with Gotion High-Tech (China);
Cooperating with ZF (Germany), equipped with an advanced central controller for
self-driving support technology.
 - VinFast has also acquired companies with relevant expertise, such as GM's Hanoi
factory (General Motors), to build its own capabilities.

5. Limited experience in managing international operations - Kinh nghiệm hạn chế

trong quản lý hoạt động quốc tế:
VinFast has partnered with established automakers such as BMW and GM to gain
knowledge and expertise in managing global operations. The company has also hired
experienced international executives to lead its overseas expansion.

6. Dependence on government support and incentives for growth and expansion of

the electric car market Phụ thuộc vào sự hỗ trợ và ưu đãi của Chính phủ để tăng trưởng
và mở rộng thị trường ô tô điện:
VinFast has collaborated closely with the Vietnamese government to receive support and
incentives for its electric car production and easy access to global markets. The company has
also diversified its business interests, including real estate and retail, to reduce its reliance
on government support.

https://vinfast.vn/su-thanh-cong-cua-vinfast-goc-nhin-tu-yeu-to-vi-mo/
7. Limited distribution and dealership network outside of Vietnam - Mạng lưới phân
phối và đại lý hạn chế bên ngoài Việt Nam:
VinFast has expanded its dealership network overseas, including in the United States and
Europe, to reach international markets. The company has also partnered with established
dealership networks, such as the European dealer network of its parent company Vingroup,
to increase its distribution capabilities.

2.2. PEST☆ -> External

2.2.1 Political

- The EVFTA was signed, with a commitment that the EU will open the automobile market
for Vietnam. Vinfast is exempted from import tax on components, reduced special
consumption tax and corporate income tax in the first few years.

- From March 1, 2022, the Government decided to reduce the excise tax to 3% for cars with
less than 9 seats (before the amendment was 15%) to promote the development of electric
cars in Vietnam.

- The Government announced many policies to create conditions for Vietnamese businesses
to participate in the automobile industry. Vinfast in the first phase applies the "3 no" policy:
no financial costs, no depreciation costs, and no interest.
https://www.studocu.com/vn/document/truong-dai-hoc-bach-khoa-ha-noi/quan-tri-hoc-
dai-cuong/45-mau-thi-thao-quan-tri-kinh-doanh/28539684

http://ds.libol.fpt.edu.vn/bitstream/123456789/3040/1/THESIS_Analyzing%20critical
%20successful%20factors%20of%20VinFast%20in%20selecting%20green%20suppliers.pdf

2.2.2 Economic

● commercial banks have lowered the new VND loan interest rate to about 9.3%/year
(down 0.65%/year compared to the end of 2022). At the same time, many banks
have also reduced capital mobilization interest rates for different forms of loans. This
helps save investment capital costs for businesses, further promoting Vinfast's
development.

In Vietnam, the Automotive industry accounts for 3 % of the country's GDP. The report
states that with GDP increasing by 5.05% and inflation by 3.25%, Vietnam's economy in
2023 will grow well and inflation will remain at a low level. Therefore, maintain stable
demand for cars.

https://kinhtetrunguong.vn/kinh-te/kinh-tet-vi-mo/gdp-2023-dat-430-ty-usd-chuyen-gia-du-
bao-thoi-diem-viet-nam-se-vuot-singapore-thai-lan-lot-nhom-25-nen-kinh-te-lon-nhat.html

2.2.3 Social and cultural

- Currently, Vietnam's large population size and rapid urbanization (about 3% per year) have
created a large demand for private vehicles, which is a potential consumer market for
Vinfast. However, Customers are still hesitant to buy electric cars for many reasons such as
lack of public charging stations, time consuming charging,...

- "Green lifestyle" is becoming stronger. Buying electric cars is becoming a trend chosen
by many Vietnamese consumers.

- With a strong national spirit: patriotism - solidarity of Vietnam from time immemorial,
VinFast has more and more competitive advantages in the Vietnamese market.

2.2.4 Technology

Investment in technology in the field of automobile and motorbike manufacturing is

huge. Therefore, the development of this field in our country still has many barriers.

+) Advances in self-driving and connected car technology are creating great

opportunities for the auto industry.

+) The development of robots and automation systems in the production process

can help VinFast improve product performance and quality, while minimizing labor
costs.
https://chuyengiamarketing.com/moi-truong-vi-mo-cua-vinfast/

3. STRATEGY

3.1. Learning organization (CONG)

Strategies: Based on strong financial resources:

- Invest in employee development:
+ Allocate funds to implement various learning and development such as training and
development programs, mentorship opportunities,...
+ Create mobile applications to provide access to training and development programs.
By using technology to enhance learning, Vinfast can reach a broader audience and
provide flexible learning opportunities that fit with the busy schedule of employees
+ Partner with educational institutions: to create specialized training programs that
address the company's specific needs. This can provide Vinfast with a pipeline of
skilled talent and create a continuous learning environment for employees.

create motivation
-Rewards may include recognition of achievements in completing courses, earning
new professional certifications, or participating in special learning projects.
- Mentorship and coaching: Create opportunities for employees to be supported and
guided by predecessors in their field. Mentorship and coaching not only help
employees develop their skills but also help them see the value of continuous
learning in their careers.
- Create career development opportunities: Create clear and flexible career
development programs, helping employees see that learning and personal
development are an integral part of their career at Vinfast (internal advancement
opportunities, mentoring programs, or innovation programs based on employee
needs.)

3.2 Adaptive complexity

The strategy of switching from gasoline cars to electric cars
Reasons/Context
-VinFast has recognized the global trend of electric vehicles because The urgent need to
reduce greenhouse gas emissions and protect the environment.
-VinFast's strategy is not just to sell cars in Vietnam, they also want to sell their products in
the international market.
Currently there is no reason for foreign customers to be willing to choose a new car company
like VinFast while global automakers like Tesla, Toyota exist. Therefore, the fact that the
company quit producing gasoline cars to focus all its efforts on developing electric cars while
other long-standing companies are still "preparing" to change is also a shortcut from the
company. VinFast took advantage of going fast to gain a competitive advantage.
=> VinFast has relied on the advantages of Strong financial resources, Advanced technology
and equipment in its manufacturing facilities and opportunities from Politics and economics
to implement its strategy.
Activities :
- From 2022, VinFast will focus 100% on electric vehicle production. To compete with
gasoline cars, VInfast produces diverse product lines with many prices, targeting many
customers.

- Research and Development (R&D): VinFast has conducted research and development to

develop electric vehicle models. This includes research into lithium-ion battery technology,

electric propulsion systems,AI tech, VinBigData, and other electric vehicle features.

- Product Design and Development: VinFast has hired famous designers such as Pininfarina

and Zagato to create beautiful and suitable car models for international customers.

The company created prototypes and conducted tests and trials to ensure the quality and

performance of the vehicle. VinFast car models will undergo more than 100 tests in 14

countries on 4 continents.

- Mass Production: The company has invested in manufacturing infrastructure and

equipment to support the mass production of these vehicles. In September 2017, VinFast

officially started construction on the electric car and motorbike production complex in Cat

Hai - Hai Phong and completed it after 21 months.

- Marketing and Product Launch: The company has organized product launch events,

advertised in the media (CNN, Tonight with Don Lemon), and participated in auto shows

showcasing their products and brands (the Paris Motor Show, LA Auto Show 2021, CES

2022)

- VinFast also announced a unique battery rental policy, including two packages: Flexible and

Fixed, ensuring total monthly basis cost is only equivalent to the cost of gasoline in each

market. In addition, VinFast will also cover all battery repair and maintenance costs and will

replace them for free when the battery's charge-discharge capacity is lower than 70%.
===> In the past 2 years, these practical financial policies have received the attention of
many consumers. The proof is that in 2023, VinFast delivered a total of 34,855 electric
cars, marking a 374% increase compared to 2022.

https://stockbiz.vn/tin-tuc/vic-tien-gan-hon-toi-giac-mo-di-chuyen-xanh-nho-nhung-chinh-
sach-moi-tu-vinfast/24690271
https://dantri.com.vn/o-to-xe-may/vinfast-khoi-dong-chien-dich-manh-liet-tinh-than-viet-
nam-lan-2-20240229182854993.htm
Resource :
1. Financial Resource :
Vinfast is a company belonging to Vingroup, the largest multi-industry corporation in
Vietnam with strong financial potential.
By the end of 2022, about 8.2 billion USD has been used by Vingroup, affiliated companies
and external lenders to finance VinFast's operating expenses and capital expenditures since
2017.
Even when VinFast restructures and switches to a fully electric vehicle production mode, the
liquidation of the gasoline vehicle production line (ICE), with a price tag of over 1 billion
USD, is also carried out by Vietnam Investment Group, major shareholder of Vingroup and
owned by Mr. Pham Nhat Vuong and his wife, bought it.
https://cafef.vn/hon-10-ty-usd-ma-ong-pham-nhat-vuong-va-vingroup-bom-cho-vinfast-bao-
gom-nhung-gi-18823042807424029.chn

2. People resource :
-Assemble a sought-after leadership team from brands such as Ford, Renault, GM and BMW.
- Vinfast owns a team of young, dynamic, creative and highly qualified human resources in
fields such as engineering, production, business, marketing… Vinfast can quickly access and
apply the most advanced technologies in electric vehicle production, meeting market needs
and the general development trend of the global auto industry.

3.Strategic cooperation with leading partners:

Vinfast has been cooperating with reputable partners in the field of electric vehicles such as
LG Chem, Siemens, Bosch,...
These partners provide Vinfast with advanced technologies in electric vehicle batteries,
electric motors, electronic systems,... helping Vinfast produce high-quality, safe and
environmentally friendly electric vehicles. .https://truyenhinhthanhhoa.vn/vinfast-hop-tac-
voi-lg-san-xuat-pin-cho-xe-dien-1808144542.htm

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