VinFast, a relatively new player in the automotive industry, has achieved an impressive feat. Just two years after its full commitment to electric vehicles (EVs), the company has emerged as a leading car brand in Vietnam. This accomplishment positions Vietnam as one of the few nations where a domestic EV manufacturer competes successfully against established foreign gasoline-powered brands.
While this achievement seems like a national victory, its significance extends beyond Vietnam’s borders. VinFast’s rise offers a model for other Southeast Asian countries, showcasing how they too can take a leadership role in the region’s “green transformation,” shifting from passive participation to actively driving sustainable innovation.
A New Era for Southeast Asia
Historically, Southeast Asia, home to over 600 million people, has been seen more as a consumer market than a hub for innovation and production. For decades, the region imported technology and industrial products, with local industries struggling to assert themselves in high-tech sectors.
Take Vietnam, for example. Its automotive industry has long been dominated by foreign brands, particularly Japanese and Korean automakers. According to Vietnam’s Ministry of Industry and Trade, the country still imports up to 80% of its automotive production components.
However, VinFast’s success in this competitive landscape demonstrates that the tide is changing. Local companies, like VinFast, are stepping up to meet regional demands by focusing on three core principles: premium-quality products, inclusive pricing, and exceptional after-sales service. These values resonate strongly with Southeast Asia’s growing middle class.
In the Philippines, the green transition is gathering momentum, bolstered by government initiatives like the Electric Vehicle Industry Development Act (EVIDA) and the push for renewable energy. VinFast’s entry into the Philippine market aligns well with these efforts, offering Filipino consumers affordable, high-quality electric vehicles to meet the increasing demand for sustainable transportation.
VinFast: A Trailblazer in Electric Vehicles
In just two years, since its transition to a purely electric vehicle company, VinFast has launched seven fully electric models, along with electric buses, scooters, and bicycles. The company has expanded internationally and built an extensive charging network in Vietnam to support its growing customer base.
This rapid progress is typical of VinFast. Founded seven years ago by Vingroup, one of Vietnam’s largest private enterprises, the company quickly set new standards. Under the leadership of visionary billionaire Pham Nhat Vuong, VinFast built its Haiphong factory in just 21 months—a record-breaking timeline that set the stage for its ambitious goals.
Initially focused on gasoline-powered vehicles, VinFast made a pivotal decision in 2021 to transition fully to electric vehicles. This move not only aligned with global sustainability trends but also positioned VinFast at the forefront of Southeast Asia’s green energy shift.
As Vuong explained in 2023, “[Vingroup created VinFast] because we feel the need to contribute to society, not just to do business. A large, successful enterprise with certain capabilities has a duty to contribute to its homeland.” VinFast’s mission is to build a technology brand synonymous with quality that can compete on the global stage.
This vision has made VinFast a leader, proving that with ambition, vision, and swift execution, even seemingly insurmountable challenges can be overcome.
VinFast in the Philippines: Driving Change
As part of its regional expansion, VinFast entered the Philippine market earlier this year, introducing two electric vehicle models—the VF 5 and VF 3. These models offer an affordable entry into the EV market, positioning VinFast as a key player in the country’s green transition.
The VF 5 has already achieved remarkable success in Vietnam, where it outsold all internal combustion engine (ICE) competitors in the A-SUV segment by August this year. Equipped with advanced features such as blind spot monitoring and rear parking assist, the compact model offers excellent value for its price.
In Vietnam, customers like Mr. Do Van Bon have reported significant savings with the VF 5. Previously spending 300,000 VND (around Php 700) on gasoline daily, Mr. Bon now spends around 140,000 VND (Php 300) to charge his VF 5—highlighting the cost advantages of switching to electric vehicles.
Filipino drivers can expect similar savings. With rising fuel costs, the VF 5 offers a cost-effective solution for those seeking both sustainability and practicality, potentially cutting daily fuel expenses in half.
Commitment to the Philippine Market
VinFast’s entry into the Philippines with affordable EVs underscores the company’s long-term commitment to the market. This commitment is further demonstrated by the company’s growing dealership network and participation in industry events, such as the upcoming 12th Philippine Electric Vehicle Summit.
While brand recognition remains a challenge, VinFast’s proven success in Vietnam, where it overcame similar hurdles, suggests that it has the potential to replicate this success in the Philippines. With the VF 5 and VF 3 offering a compelling mix of technology, affordability, and performance, VinFast is poised to make a significant impact in the Philippine automotive market.
The company is also working closely with local partners to build a reliable charging infrastructure, addressing one of the main concerns of potential EV buyers.
Southeast Asia’s Green Revolution
VinFast’s journey from a newcomer to one of Vietnam’s top automotive brands is more than just a corporate success story. It’s a testament to Southeast Asia’s potential to embrace a sustainable future. As VinFast continues to expand across the region, it carries the hopes of Southeast Asia becoming a more significant player in the global EV industry.
With strong support from the Philippine government, including tax incentives and infrastructure development, VinFast is well-positioned to contribute to the country’s sustainability goals. By participating in local industry events and collaborating with policymakers, VinFast is set to play a key role in advancing the Philippines’ green transition.
VinFast’s rise sends a powerful message: Southeast Asian nations have the talent, resources, and ambition to lead the global shift toward sustainable innovation. This is not just a victory for Vietnam—it’s a triumph for all of Southeast Asia, as the region takes its place on the world stage.
