SWOT ANALYSIS OF VINFAST I STRENGTHS Positive brand image VinFast Manufacturing and Trading Company Limited (VinFast LLC) is considered the first automobile brand in Vietnam The company is a member of VinGroup founded by billionaire Pham Nhat Vuong Besides VinFast, when it comes to VinGroup, we also often mention VinPearl, VinMart, Vinhomes, VinMec These brands have all become big names in the Vietnamese market in terms of tourism, real estate, shopping, medical and always maintain a professiona.
SWOT ANALYSIS OF VINFAST I STRENGTHS - Positive brand image + VinFast Manufacturing and Trading Company Limited (VinFast LLC) is considered the first automobile brand in Vietnam The company is a member of VinGroup founded by billionaire Pham Nhat Vuong Besides VinFast, when it comes to VinGroup, we also often mention VinPearl, VinMart, Vinhomes, VinMec These brands have all become big names in the Vietnamese market in terms of tourism, real estate, shopping, medical and always maintain a professional and prestigious image for domestic and foreign customers Inheriting a part of that positive brand image, VinFast has also acquired a positive image of the brand as well as created trust and prestige among customers In addition, VinFast Manufacturing and Trading Co., Ltd recently continuously announced the issuance of bonds to raise capital With the reputation it has built, with the established brand image, VinFast has received a lot of investment attention In the latest time, the company has issued and mobilized more than 9,000 billion VNĐ of bonds for more than month - Dense dealer network + VinFast quickly acquired the entire dealer network of GM Vietnam right before the launch of new models This system includes 22 agents, 1.5 times more than MBV As a giant in the real estate and construction industries, Vingroup will not be difficult to expand the scale of its vehicle distribution system, especially when they have many commercial centers available for display - High Level of Conformity - Quality Management + Compatibility with stringent quality, safety and environmental standards is required for entry into many markets With new investment in technology and a vision towards the future, Vinfast has many advantages over existing firms when it does not have to bear the burden of the current system (According to Tien Phong - Channel of Economic and Financial Information CafeF) - Stable human resources + General Manager: James B.DeLuca ● Experience: Former Vice President of the America's largest auto corporation Served as Vice President of General Motors (GM) for 37 years; in charge of the global production chain Under his leadership, GM has made tremendous improvements in quality and production costs, and launched 19 new models in international markets ● Responsibility: The construction, operation and development of the automobile manufacturing segment (excluding electric motorbike production) of the VinFast automobile production complex + Vice General Manager: Mr Vo Quang Hue Former General Director of Robert Bosch Vietnam More than 40 years of experience in the manufacturing industry + Former Vice President and General Director of VIC: Ms Le Thi Thu Thuy, Former Vice President of Lehman Brothers Japan, Thailand and Singapore - A plentiful supply of automotive parts that are simple to repair at a low cost + A plentiful and reasonable supply of car parts is another element that makes it easier for you to decide whether or not to acquire a VinFast vehicle This is also the difference between VinFast automobile products and imported cars on the market, which are subject to significant tariffs as a result of our country's import policy, which is designed to safeguard the environment while simultaneously emphasizing use Products from Vietnam + Currently, the VinFast car parts and accessories plant in Hai Phong saves money on transportation, taxes, and is simple to replace That is also why VinFast automobile prices are significantly lower than those of other models - Collaboration with some of the world's most well-known brands + VinFast has continually increased cooperation with many of the world's leading partners in order to fulfill the intended aim of providing high-quality, luxury, and economical automobiles for the Vietnamese people BMW, Magna, Steyr, EDAG, ItalDesign, Siemens, AVL, Bosch, Pininfarina, and others are among them + Furthermore, the company makes significant efforts to develop a core, highquality leadership team with considerable experience from the world's best vehicle manufacturers - VinFast electric cars have a lot of potential in the US market + With the issuing of a new executive order, the United States has reorganized the electric car business By 2030, the US has set a goal of 50 percent new energy and 40-50 percent electric vehicle sales To achieve these goals, the United States is implementing a comprehensive car industry reform strategy bowl + The US government has started a number of programs to make electrification more ubiquitous in automobiles, in addition to plans to expand investment in electric vehicle production and infrastructure The Clean Energy Act, for example, has a number of preferential policies for electric vehicles priced under $80,000, such as easing the tax deduction policy for electric vehicles and providing a maximum subsidy of $12,500 to persons who purchase electric vehicles When it comes to approaching the US market, VinFast will benefit from this II WEAKNESSES - Although there has been a significant rise in the popularity of Vinfast, in general, the majority of the auto market does not belong to Vinfast as it is a new domestic car company Meanwhile, customers, especially those living in Vietnam, tend to choose imported products that possess a whole package of reputation high-quality products as well as service ⇔ Big competitors from automakers with the same customers namely: Hyundai (Korea), Toyota (Japan), Honda (Japan), or Camry in more advanced car lines - “Currently, our country's auto market is in the hands of names like Thaco Truong Hai (32% - 89,602 cars/year), Toyota (21.4% - 60,000 cars/year), and Hyundai Thanh Cong (10 cars/year) and Ford (10% – 28,588 vehicles/year) These are brands that have a large number of loyal customers.” (2019) For example: Class car A: Hyundai i10 - Vinfast Fadil - Kia morning Sales of A-class small cars in Vietnam (02-2022) No Product Hyndai Grand i10 Sales in Feb Compared to Total 2022 Jan 2022 987 cars Increased 77 1897 cars cars Vinfast Fadil KIA Morning Honda Brio Toyota Wigo 697 cars 401 cars 298 cars 144 cars Decreased Price (VND) 360-455 million 2098 cars 425 - 704 cars million Decreased 29 831 cars 304 cars million Decreased 816 cars 418 - - 220 cars million Decreased 72 360 cars 352 cars million - 499 439 452 385 - Vinfast sử dụng hình thức phân phối cấp 1: VINFAST => NHÀ PHÂN PHỐI => NGƯỜI MUA XE hay VINFAST => NHÀ BÁN LẺ => NGƯỜI TIÊU DÙNG Tuy nhiên, nhà phân phối/bán lẻ đồng thời tham gia vào hệ thống phân phối hãng xe đối thủ Vinfast => Bất lợi cạnh tranh trực tiếp - Vinfast's announcement to stop producing gasoline-powered cars from the end of 2022 and focus on developing electric-powered models would be a weakness in the near future because most of its profits come from internal combustion engine (ICE) cars => Testing and promoting electric vehicles at the same time with the cessation of supply of popular used cars would lead to the decreasing in total number of vehicles consumed As a result, Vinfast's market share of Vinfast's car market would reduce sharply - Although the dealer network is spreading, the source of components is manufactured at an affordable price; but since the company is new to the market, the number of dealers, as well as the popularity of VinFast component repair is a weak point compared to the previous companies, especially Toyota Is there an advantage that VinGroup with relatively good cultural services can balance the position for VinFast in the market III OPPOTUNITIES: − Having the ability to generate mass-market products by inheriting and exploiting technology from partners + Vinfast has begun by collaborating with important partners such as Italian design firms and the BMW Group This is also a well-known tendency among several automotive manufacturers throughout the world Using technologies from partners to put into production on their own and creating items for the people will be a major point that will determine Vinfast's existence − With high support from Vietnamese customers in the context of the strongest domestic consumption in Southeast Asia + It can be said that at the present time, VinFast is the first company that has the ambition to produce cars and has the ability to turn that ambition into the highest reality After so many expectations of the Vietnamese people about having a car of the manufacturer itself, VinFast is showned to dominate the "leader" in the Vietnamese market With a young population, and relatively stable income, it is understandable to own a car And because it was the first car "made in Vietnam", it also made young people curious and wanted to own or try how the car was Not to mention, the tax for a car when imported into Vietnam is quite high, so when exporting a domestic car will receive the response of the majority of people − Having great potential to meet the psychology of Vietnamese people who want to own an car when the infrastructure is improved + Not only that, with the development of urban projects outside the city, along with improved infrastructure, it also affects the tendency of consumers to want to use cars Currently, the trend of traditional housing has shifted to high-end apartments with full amenities There is a large basement parking with a parking fee that is not worth much ⇔ These factors combined give us a potential, and more developed view of the tendency to want to own a car - Govenment priority policies + Decree No.122/2016/ND-CP dated September 1, 2016 and Decree No.57/2020/ND- CP dated May 25, 2020 of the Government on Export and Import Tariff Incentives, list of goods and absolute tax rates, mixed tax, import tax outside the tariff quota: According to current regulations, the tax incentive program for automobile manufacturing and assembly is applicable from November 16, 2017 to December 31, 2022 Actually, the Government applies a preferential tax rate of 0% for imported components serving domestic automobile assembly and manufacturing enterprises that haven’t produced domestically Notably, the Government decided to extend the implementation of the tax incentive program for domestically manufactured and assembled cars until the end of December 31, 2027, to continue to encourage businesses to invest, expand production scale and promote the development of domestic automobile supporting industries This policy not only helps to reduce prices, increase the competitiveness of domestic cars against imported cars, but also stimulates the development of the auto supporting industry in Vietnam Especially, if Vinfast's localization rate increases to over 40%, it will enjoy an import tax rate of only 0% in ASEAN countries under the ASEAN Trade in Goods Agreement (ATIGA) (effective from January 1, 2018) This will be a great advantage for Vinfast when it wants to expand its market to other ASEAN countries + Decree No 103 stipulates the registration fee for domestically manufactured and assembled cars: According to this Decree, the Government has agreed to reduce the registration fee by 50% for domestically manufactured and assembled cars Valid from December 1, 2021 to May 31, 2022 Currently, cars with seats or less have a registration fee of 10% of the car's selling price, 12% in Hanoi alone Therefore, the policy of 50% reduction in registration fees will help people reduce tens of millions of dong depending on the type of vehicle, thereby restoring the gloomy Vietnamese auto market after a long time being affected by the epidemic sick - Environmental protection is the aim of many countries in the world; this will be the goldern chance for VinFast to ecourage their electric products + At present, the natural environmental conditions are getting worse and worse; Severe air and water pollution, industrial emissions have created a hole in the ozone layer causing the greenhouse effect, then global warming leads to a series of subsequent consequences such as melting ice, sea level rise, This situation has put countries around the world to sit at the negotiating table to find a solution Enterprises cannot help but take action to come up with new strategies to catch up with the trend As a result, if Vinfast knows how to stay ahead, find out the environmental solutions such as looking for ways to produce environmentally friendly cars, Vinfast will make a good impression in the hearts of customers At present, the "green" environment is one of the important criteria when choosing products of customers, if done well, it will help Vinfast have a higher position in the domestic as well as international market IV - THREATS The influences of other well-known competitors in the market + Brand value is the important key for new models, which drives customers' decisions because they will be hesitant to choose Vinfast products or other brands that have been on the market for decades VinFast will have to confront experienced and established names in Vietnam such as Toyota, Hyundai, Kia or higher, BMW, Mercedes with the same price segment Alongside those opportunities for Vinfast, there are also challenges for this first car maker "Made in Vietnam" cre pic: VNExpress + When compared to well-known automakers in the car market, Vingroup does not have much experience, which also makes it difficult to manufacture and install cars as well as to access and penetrate deeply into this market As of September 2021, Vinfast was ranked fourth on the list of the largest car companies with market share, behind Toyota, Hyundai and Kia, indicating that Japanese and South Korean automakers have a significant market share in Vietnam This also clarifies the Vietnamese people's preference for foreigners in car shopping + After a year of entering a market race with monthly sales reports, VinFast is building up their footing as they surpassed a series of "senior" car firms in the market However, the fact that the VinFast series of vehicles over the last two years have not seen any major upgrades, and the proposal price is higher than the cars of the same class in the market, therefore have to make deep discounts in order to compete - The auto auxiliary industry in Vietnam has not yet developed + Despite government interest and support, the domestic ancillary industry has not yet developed, with a low rate of domestic localization The vehicle manufacturing and assembly industry in Vietnam has produced only a number of groups of components, such as car chassis, car tanks, cabin tires, car doors, tires, radiators and brake cords, etc In fact, leading brands, even industrydriven brands like Toyota, Mercedes and BMW, are not yet able to produce an entire car They must also collaborate with other vendors Their advantage, nevertheless, is building the “ecosystem” and a host of prestigious auxiliary companies around + Up to now, almost 20 years later, the localization rate achieved by the Vietnamese automotive industry has only disappointed expectations This is because the percentage of attainment remains at a minor number and is far from the target established earlier This feature makes it even more difficult to produce a “Made in Vietnam” car In addition, investment in the production of auto components and spare parts is still small, the products produced are few in terms of both category and output Consequently, Vinfast will be exposed to intense pressure on its automotive components Maybe that's why, despite receiving many tax incentives and cheap labor, Vinfast's products still have a high price - There is still no policy to support the development of electric cars + Following the global trend, the Vietnamese market is also moving into the tram business with the bold direction of VinFast There are currently no specific figures for sales of electric cars in the country but industry revealed that the figure is not too much On trams development policies in Vietnam, the Ministry of Industry and Trade said in a recent report to the government that there is no real support policy for electric cars We can see that the current policy for electric cars is not clear enough to move this industry forward This also leads to the lack of policies to boost battery production and the construction of a network of charging stations, which becomes a major obstacle preventing the Vietnamese auto market from growing + Experts stated that the lack of a systematic policy to support the electric vehicle industry will be directly related to battery production, development of charging infrastructure, pricing and emissions into the environment An expert in the automotive industry also said: "Batteries need to be durable and have fast charging function, the network of charging stations must be widespread." Moreover, there is a lack in Vietnam of static parking spots and land funds for the placement of charging stations In particular, not all types of electric cars and charging ports have been made in the same way, so developing a charging station system that can meet the charging needs of all-electric vehicles is not a minor challenge + Tram prices are not currently attractive enough compared with fuel-powered vehicles, from the report of the Ministry of Industry Consumer tax rates at 15% on electric cars, compared to 30-50% on gasoline-powered cars, are not enough to bring electric car prices down to customer appeal Furthermore, policies on the promotion of tram development in Vietnam are largely absent Trams have so far only received special consumption tax rates, which are lower than ordinary gasoline/oil powered vehicles (the contents approved by The National Assembly at Law 03/2022 / QH15) - Difficulties when stepping out of the “home field” + VinFast launched electric car models with the plan to "Mang chuông đánh xứ người" which will certainly open up huge opportunities in the future of the Vietnamese car brand Nonetheless, not every road is filled with roses, and Vietnamese car company - VinFast will face many difficulties + VinFast “saluted" the U.S market with two electric VF E35 and VF E36 models Following the success of VinFast VF E34, the duo VinFast VF E35 and VF E36 have recently debuted in the United States This was seen as Vinfast's great advance in the development of environmentally friendly tram lines + However, the U.S market has long been famous for its toughness as many big, "kingpins" failed here One can mention the case of Chinese car giants such as Zhejiang Geely, BYD and GAC that want to be present in the US market Geely has sought to enter the US since 2005 by sending 12 sedans to Virginia for edits This was seen as a move to clear the way for a planned sale of 5,000 vehicles in the United States by 2008 But Geely's plan has crashed In March 2006, John Harmer, then CEO of Geely's U.S affiliate, admitted that the engines had "big problems", so they couldn't meet emission standards in the US The toughness of this market is evident as many car firms are rejected, such as Suzuki, by the “big men” from China Up to now, the U.S market remains an "impenetrable wall" for Chinese vehicle giants, despite having "launchers" as their experience, technology and possessing a diverse supply chain at the world's cheapest price + Additionally, although the U.S tram market is an attractive piece of cake, under the oversized silhouette of Tesla's leader and other "crossbow" names, the challenge that VinFast - a fledgling young car company and short recognition was overwhelming Admittedly at present, what Americans know about Vietnamese cars only stops in awe or curiosity, with doubts as to the quality of "made in Vietnam" The production of cars and trams by Vietnam is too "incredible" for users in the U.S market V CONCLUSION References: Phân tích hoạt động Vinfast (2021) Retrived from: https://123docz.net/document/7472584-phan-tich-cac-hoat-dong-cuavinfast.htm Marketing bản: Vinfast Strategy Retrived from: https://123docz.net/document/9900105-marketing-can-ban-vinfast-strategy.htm Vingroup - Anual Report 2020 Retrieved from: https://ircdn.vingroup.net/storage/Uploads/0_Annual %20Reports/0_2020%20Vingroup/Vingroup%20-%20Annual%20Report %202020_VN.pdf James Nguyen (?) Phân tích mơ hình ma trận VinFast Retrieved from: https://www.academia.edu/39045308/E_A_D_1_E_D_1_1_E_D_B_2_2_Ph %C3%A2n_t%C3%ADch_m%C3%B4_h%C3%ACnh_ma_tr_n_ %C4%91_i_v_i_Vinfast_2_2_1_C%C3%A1c_y_u_t_trong_swot_ %C4%91_i_v_i_Vinfast Ơtơ Trung Quốc - tham vọng bá chủ giới Retrieved from https://thitruong.nld.com.vn/thi-truong/oto-trung-quoc-tham-vong-ba-chu-thegioi-20180110202359797.htm VinFast báo lỗ 267 triệu xe Lux A (2019, November 27) VnExpress Retrieved April 29, 2022, from https://vnexpress.net/vinfast-bao-lo-267-trieumoi-xe-lux-a-4018444.html Góc nhìn chun gia: Tỉ lệ nội địa hóa tơ lắp ráp Việt Nam thấp, đâu? (2021, July 21) Báo Thanh Niên https://thanhnien.vn/goc-nhin-chuyen-gia-tile-noi-dia-hoa-o-to-lap-rap-tai-viet-nam-thap-vi-dau-post1271143.html Bộ Công Thương: Việt Nam chưa có sách tơ điện nghĩa (2021, July 5) VTV.vn https://vtv.vn/kinh-te/bo-cong-thuong-viet-nam-chua-cochinh-sach-o-to-dien-dung-nghia-20210705004110649.htm Thách thức trạm sạc xe điện - Báo Người lao động (2021, September 19) Báo Người Lao Động https://nld.com.vn/oto-xe-dien-may/thach-thuc-ve-tramsac-xe-dien-20210918190640689.htm 10 Từ 01/3/2022, giảm thuế tiêu thụ đặc biệt cho ô tô điện chạy pin (2022, January 26) LuatVietnam https://luatvietnam.vn/tin-van-ban-moi/tu-01-32022-giam-thue-tieu-thu-dac-biet-cho-o-to-dien-chay-pin-186-35156article.html 11 Mỹ Cải cách ngành công nghiệp xe điện: Co hoi phat triển Cho VinFast (n.d.) VinFast https://vinfastauto.com/vn_vi/co-hoi-cho-vinfast-khi-my-cai-cachnganh-cong-nghiep-xe-dien ... million - 499 439 452 385 - Vinfast sử dụng hình thức phân phối cấp 1: VINFAST => NHÀ PHÂN PHỐI => NGƯỜI MUA XE hay VINFAST => NHÀ BÁN LẺ => NGƯỜI TIÊU DÙNG Tuy nhiên, nhà phân phối/bán lẻ đồng thời... V CONCLUSION References: Phân tích hoạt động Vinfast (2021) Retrived from: https://123docz.net/document/7472584-phan-tich-cac-hoat-dong-cuavinfast.htm Marketing bản: Vinfast Strategy Retrived... car company - VinFast will face many difficulties + VinFast “saluted" the U.S market with two electric VF E35 and VF E36 models Following the success of VinFast VF E34, the duo VinFast VF E35