Xây dựng chiến lược cho oto Điện vinfast tại vn

Xây dựng chiến lược cho ô tô Điện Vinfast tại Việt Nam năm 2024. Dựa vào nền kinh tế hiện tại, phân tích ngành công nghiệp oto trong và ngoài nước. Từ đó đánh giá và đưa ra chiến lược phát triển

VISION, MISSIONS & CORE VALUES 7

History of establishment and development 9

Vinfast 10

Vinfast profile 10

Overview 10

One of the World’s Leading Smart Electric Vehicle Company 10

VISION, MISSIONS & CORE VALUES 11

Formation history 11

Achievement 13

Overview of the electric vehicle industry in the world 18

Correlation of income - car consumption 26

Opportunities and challenges faced by Vietnamese enterprises 31

Core competencies and factors creating competitive advantage 32

VinFast's industry 36

Growth Trends in the EV Market 38

Macro environment analysis 43

Politics and Law 43

Risks Related to Vietnam 46

Economy, Population, Labor 49

Overall economic situation: 49

Fuel prices: Gasoline prices rise, EV battery prices fall 51

Population and Labor: 53

Cultural and Community: 56

Science, Technology 62

Micro environmental analysis 64

The current competitive 65

Vinfast - Competitive Landscape in the Global Passenger Vehicles Market 65

Vinfast's main competitors include famous gasoline car manufacturers and electric car manufacturers in the world but do not have official distributors in Vietnam 72

Thaco Truong Hai 72

Hyundai Thanh Cong 77

Distribution and Retail 101

Analyze internal factors 101

Comparison for the Three Months Ended March 31, 2022 and 2023 115

Comparison for the Years Ended December 31, 2021 and 2022 121

Liquidity and Capital Resources 128

Seasonality 133

Inflation 133

Quantitative and Qualitative Disclosures about Market Risk 134

Risks Related to VinFast’s Business and Industry 135

Research and development activities 166

Smart Mobility and the VinFast Differentiators 168

Battery Technology and Solutions 169

Technology 170

Risks Related to VinFast’s Information Technology, Cybersecurity and Data Privacy 177

Risks Related to VinFast’s Intellectual Property 181

Marketing 184

VinFast strategies were built 185

EFE Matrix, IFE Matrix SWOT Matrix and Development Strategy 195

2 (S 2,3 - O 2,5): Developing electric car-ready infrastructure in tandem with developing

home charging equipment 197

4 (S 1, 8 - O 4, 6): Widespread communication, using the image of influencers marketing198S-T Strategy (Strengths combined with Threats) 200

2 S (4,5,7,8) - T (3,4): Strategies to expand domestic and foreign markets 201

W-O Strategy (Weaknesses combined with Opportunities) 203

2 W3 + O4: Brand positioning strategy 203

3 W2, W3 + O5, O6: Product improvement strategy 203

W-T Strategy (Weaknesses combined with Threats) 204

2 Investment in domestic production of automobile components 205

3 Implement battery rental to reduce the cost of electric cars 205

5 Development of charging station system 206

Business strategy: 207

Business registration number and tax code 0101245486

Urban Area, Viet Hung Ward, Long BienDistrict, Hanoi, Vietnam

Vingroup Joint Stock Company (Vingroup JSC)

Vingroup, formerly known as Technocom Corporation, was founded in 1993 in Ukraine In the early2000s, Vingroup started in Vietnam with two key brands: Vincom and Vinpearl In January 2012,Vinpearl JSC merged with Vincom JSC to form Vingroup Joint Stock Company.

Vingroup Joint Stock Company (“Vingroup" or "the Group”) is one of the largest listed companies inVietnam as measured by market capitalization With the initial focus on developing hotel andresidential properties under the Vinpearl and Vincom brands, Vingroup has constantly developed andexpanded its business segments in the spirit of sustainable and professional development

Vingroup now operates in three pillars: • Technology – Industrials

• Real Estate and Services • Social enterprises

Leading local top-of-mind companies among consumers in Vietnam in 2019

The chart shows the percentage of Vietnamese consumers who know the top local companiesin their minds in 2019 The chart shows that Vinamilk, Vingroup, and Viettel are the three best-knownlocal companies in the minds of Vietnamese consumers in 2019, namely Vinamilk (29%), Vingroup(21%), and Viettel (69%) These three companies are all large corporations with diversified activitiesin many fields They also have an effective marketing strategy, which helps them reach a wide rangeof consumers.

In addition, the chart also shows some other known local companies with smaller percentages.These companies include FPT, Kinh Do, Mobile World, Hoa Phat and Biti's These are all companieswith strong brands in their fields of activity This is a useful source of information for businesseslooking to enter the Vietnamese market You can use this information to identify key competitors anddevelop an appropriate marketing strategy.

Corporate Structure

Vingroup operates in core areas that are operated independently by independent profit centers (P&Ls),with separate accounting and self-responsibility for business plans and results The corporatedivisions in Vingroup JSC, the parent company, provide support, supervision, and operationalguidance to the P&Ls They also play a leading role in the committees and working groups that meetto assess, monitor, and make decisions regarding the Group and its business units Vingroup’sgovernance structure is as follows:

History of establishment and development

Vingroup is a well-known multidisciplinary private corporation in Vietnam The predecessorof Vingroup is Technocom Group, founded in 1993 in Ukraine

In the early 2000s, Technocom returned to Vietnam, focusing on investment in tourism andreal estate with two initial strategic brands, Vinpearl (tourism) and Vincom (real estate) In 2003,Vinpearl JSC started construction of Vinpearl Resort Nha Trang In 2004, Vincom JSC launchedVincom City Centers and expanded into retail with the VinMart supermarket system in 2009.

By January 1/2012, Vincom Joint Stock Company and Vinpearl Joint Stock Companymerged, officially operating under the model of a Group with the name Vingroup - Joint StockCompany Since then, Vingroup has continuously expanded its business with multiple fields ofoperation In 2013, Vingroup launched Vinmec - a high-standard international general hospitalsystem In 2014, Vingroup established Vinschool - an education system from kindergarten to highschool according to international standards

Following the success, in 2017, Vingroup father eyes Vinfast - a Vietnamese brand of electriccars and motorcycles And inaugurated VinUniversity - the first private non-profit university inVietnam in 2018; continue to expand into the agricultural sector with VinEco - a high-techagricultural production group in 2019.

Vingroup is a strong corporation with an impressive history of formation and development.Vingroup has been actively contributing to the development of Vietnam and aims to become a leadingtechnology, industry and service group of international stature.

One of the World’s Leading Smart Electric Vehicle Company

VinFast, the first Vietnamese all-electric brand, was established on 02 September 2017, withthe groundbreaking for its manufacturing plants in the Dinh Vu-Cat Hai economic zone in Hai Phong.VinFast’s mission is to offer consumers affordable, electric cars Its manufacturing complex includes1,400 robots from KUKA, ABB, Siemens, and Durr The level of automation in Press and Paint shopsis 90% and 95%, respectively.

The abbreviation “FAST” in “VinFast” stands for “Style-Safety-Innovation Pioneer.” Its goalis to support the global EV revolution with electric cars, electric buses, electric motorcycles, andelectric bikes VinFast prioritizes the customer experience through relentless innovation to achieve thehighest quality VinFast promotes the replacement of internal combustion engine vehicles withelectric vehicles, thereby creating a green future for all.

VinFast motto is “Vietnam-Style Safety-Innovation-Pioneer.” Its goal is to support the globalEV revolution with electric cars, electric buses, electric motorcycles, and electric bikes.

As of March 2023, VinFast has introduced six domestic EV models, one domestic electricbus, and nine domestic electric motorcycle models In the international market, VinFast has

introduced four EV models in the B- and E-segments and several electric bike models Three EV carmodels, VF e34, VF 8 and VF 9, have been delivered to customers Models VF 6 and VF 7 will beavailable for reservations; delivery of the VF 5 Plus, VF 6 and VF 7 model is expected in 2023.

VinFast also established a network of R&D divisions/centers/institutes in order to achieve itsgoal of becoming one of the world's leading smart electric vehicle manufacturers, in addition tosupport from research institutes and technology companies within the Group.

VISION, MISSIONS & CORE VALUES

VinFast broke ground in September 2017 on an 828-acre (3,350,000 m2) facility in anindustrial park located on Cat Hai Island near the city of Hai Phong The factory with paint shop,press shop, assembly shop and engine shop was built in just 21 months

The investment is US$1.5 billion in the first phase of a program to make cars and electricmotorbikes at a greenfield factory on the facilities The company claimed that it has aggregated talentfrom multiple established companies and is sourcing European design, engineering, and productiontechnology partners The first two vehicles that were shown at Paris motor show in the fall of 2018 arethe LUX SA2.0 and the LUX A2.0, designed by Pininfarina

In 2018 General Motors announced a partnership between Chevrolet and VinFast VinFastwill have exclusive rights to distribute Chevys in Vietnam and will take ownership of the existingGeneral Motors (GM Korea) factory in Hanoi (VIDAMCO) That factory will then build a GM-licensed "all-new global small car" to be sold under the VinFast name.

VinFast signed two contracts with Siemens Vietnam, a unit of Siemens AG, for the supply oftechnology and components to manufacture electric buses in Southeast Asian countries in August2018 On 21 March 2019, it sent the first batch of 155 VinFast Lux cars, 113 completed vehicles and42 semi-finished cars, abroad in Europe, Asia, Australia and Africa to conduct field tests for qualitytesting and to qualify for a 5-star ASEAN NCAP rating

The company would have been the title sponsor of the inaugural edition of the Formula OneVietnamese Grand Prix, which was due to take place during the 2020 season - the race was latercanceled due to COVID-19 pandemic In Q1 2020, VinFast was the fifth best-selling car brand inVietnam.

On 25 February 2020, it was reported that VinFast vehicles were spotted in South Africa forfield tests at Kakamas in the Northern Cape Province and in Cape Town On September 20, thecompany announced a loss of VND 6.6 trillion ($284 million) in the first half of the year.

In December 2020, VinFast released preliminary images of a pickup truck being developedweeks after the Lang Lang testing center was purchased.Other vehicles in development included athree-door hatchback, two different coupe-type SUVs, a small SUV, a four-door coupe, a couple ofpeople movers and electric scooters According to the Intellectual Property Office of Vietnam, thepatents for these vehicles are set to expire on 14 January 2024.

On July 27, 2021, parent Vingroup announced that Michael Lohscheller, the CEO of Opel,had been appointed CEO of VinFast Global Five months later, on December 27, it was announcedthat Lohscheller had resigned the position.

On 30 September 2021, VinFast reported that Cerence software will be used for its electricvehicles as an intelligence voice assistant On 25 December, it delivered the first batch of 100 VF e34electric crossovers to Vietnamese customers at VinFast's manufacturing complex in Hai Phong TheVF e34 marks VinFast's first EV model and the first ever electric vehicle to be manufactured and soldin Vietnam.

According to Reuters, Vinfast had only made 7,400 car sales in 2022, all of which occurred in

Vietnam The company however has set itself a target of 50,000 car sales globally for 2023 Theymissed the goal but delivered close to 35,000 electric cars in 2023 Their Chairwoman, Le Thi ThuThuy, projected sales of 40,000 - 50,000 vehicles in 2024

On 6 January 2022, reports emerged that VinFast plans to build new EV plants in Germanyand the United States as part of the company's plans to retire production of gas-powered vehicles andtransition fully to EVs by late 2022

In the Technology & Industrials pillar, VinFast proudly marked its name as Vingroup’spioneering brand in global market penetration The year 2022 was a highlight of the brand whenVinfast officially became the first internal combustion engine car manufacturer to transform into anall-electric brand

Specifically, VinFast reached a historic milestone in the domestic car manufacturing industryin November 2022 by becoming the first Vietnamese brand to pass every quality standard to exportcars to the United States – one of the most rigorous markets in the world Following the United StatesEnvironmental Protection Agency (EPA) official confirmation of the estimated battery range, itdelivered the first shipment of the VF 8 City Edition model to American consumers, heralding a newbeginning for VinFast in international markets.

VinFast also opened 22 sales and service centers in North America and Europe with amethodical approach to global market penetration In addition, it signed a contract to build anautomotive manufacturing factory in North Carolina, in the southern U.S with an initial investment ofUSD 2 billion in March 2022 The factory will have an annual capacity of 150,000 units and isexpected to go into operation by 2025, giving the company a considerable advantage in the USmarket

Meanwhile, VinFast still receives considerable interest from domestic consumers thanks to itscore business strategy, “Quality car – Accessible price – Excellent service,” with sales reaching over24,000 units in 2022 In the last month of 2022, VinFast’s two electric car models, the VF 8 and theVF e34 ranked among the top 10 best-selling cars in the market, with VF 8 coming at Number 3 afteronly four months of delivery This impressive result shows VinFast's early success in gainingcustomers’ trust in its journey to create a green future for everyone.

VinFast remains the number one e-scooter brand in the market, with sales totaling 60,000units in 2022, a 47% year over year increase VinFast’s new-generation e-scooters are replacingtraditional motorbikes thanks to the company’s pioneering development in new battery technologiesfor longer travel distances One notable model is the “people’s electric bike,” the VinFast Evo2000,with 18,000 orders in the first 48 hours of sales

Our Business

We are an innovative, full-scale mobility platform focused primarily on designing andmanufacturing premium EVs, e-scooters and e-buses Our initial EV product line is an all-new rangeof fully-electric A- through E-segment SUVs, the first of which began production in December 2021.We focus strategically and exclusively on EVs and fully phased out production of ICE vehicles in2022 in order to execute on our vision of creating an e-mobility ecosystem built around customers,community and connectivity alongside our new vehicle roll-out We plan to deliver on this strategy by

leveraging our manufacturing expertise and strong track record of producing ICE vehicles and scooters We started producing e-scooters in 2018, passenger cars (ICE vehicles) in 2019 and e-busesin 2020 We have delivered approximately 105,000 vehicles (primarily ICE vehicles) andapproximately 182,000 e-scooters through the end of June 2023 Innovation is at the heart ofeverything we do We focus on achieving operational efficiency and technological integration, and weseek to continuously improve our processes to deliver world-class products.

e-We plan to begin selling our electric SUVs in key global markets in 2023 Our initial targetmarkets are the U.S and Canada in North America and France, Germany and the Netherlands inEurope We will also continue to target our existing market in Vietnam Our target markets areexpected to offer an expected TAM of $1.3 trillion by 2028, which would represent an annualshipment of approximately 34 million vehicles, according to Frost & Sullivan We see thesegeographies as vital to our strategy, with significant momentum and positive forces driving the switchto EVs across vehicle segments Specifically, we believe the A- through E- electric SUV segmentswill lead the EV revolution and drive profitable growth in the near and long term across theautomotive market While we are currently focused on these segments, we continue to evaluate thefull spectrum of vehicle types for future product development We believe our vehicles aredifferentiated, especially across the emerging EV space, through our premium-quality productoffering, including advanced technology and new-mobility features for our drivers, a fashionable andluxurious design, and our comprehensive Smart Services solution We expect to remain competitiveby focusing on SUVs, the most popular consumer vehicle segment, and including in our products toptier technology and luxurious outfitting that is not standard for similar vehicles at our price points Westrongly believe in the future of Smart Mobility and strive to provide the VinFast platform as anaccess point to that future.

Our VF 8 (D-segment) and VF 9 (E-segment) models are our first electric SUVs to be offeredin North America and Europe Since we introduced these models at the Los Angeles Auto Show inNovember 2021, they have been showcased at the International Electric Vehicle Symposium,Consumer Electronics Show, New York Auto Show, Paris Motor Show, Montreal Auto Show andCanadian International Auto Show We currently offer two trims of the VF 8 and VF 9: Eco and Plus.The Eco trim offers a longer driving range than the Plus trim with standard features The Plus trimoffers higher horsepower and luxury features including a panoramic glass roof, leathered upholstery, apower-assisted tailgate and captain’s chairs for the second row We began U.S deliveries of the VF 8in March 2023 from our initial U.S shipment of 999 VF 8 “City Edition'' vehicles in both Eco andPlus trims The “City Edition” was our first version of the VF 8 to go through the relevant testing andapproval processes in the U.S and therefore completed those processes and was available for deliverysooner than the VF 8 (87.7 kWh battery) We offered a $3,000 discount on the VF 8 “City Edition” to

select customers who had made reservations for the VF 8 in the U.S The “City Edition'' is alsoavailable on a 24-month or 36-month lease basis for California residents only Customers were giventhe option to receive the “City Edition'' at the discounted price or maintain their existing reservationfor the VF 8 (87.7 kWh battery) Certain customers who opted to take delivery of the VF 8 “CityEdition'' may be eligible for the VinFast Lease Forward Program after 12 months of leasing, andsubject to the terms and conditions of the program, would be able to exchange their VF 8 “CityEdition” for the VF 8 (87.7 kWh battery) with equivalent trim We have no plans for future offeringsof the VF 8 “City Edition'' in North America or Europe but will continue to offer this VF 8 “standarddriving range” option in Vietnam In April 2023, we dispatched a shipment of approximately 1,900VF 8 (87.7 kWh battery) that use battery components that result in a longer driving range than the VF8 “City Edition, and plan to deliver the VF 8 vehicles from this shipment to North Americancustomers in the second half of 2023 Deliveries in Europe are expected to begin in the second half of2023 We plan to deliver the VF 9 in North America in 2023 and in Europe in 2024 As of June 30,2023, we had approximately 20,000 reservations for the VF 8 and VF 9 globally (of whichapproximately 10,000 reservations are in the U.S.).

We commenced delivery of the VF 5 (A-segment) model in Vietnam in April 2023 The VF 5is our electric SUV for the Vietnam market that offers dynamic youthful styling, targeting first-time,budget conscious buyers We received approximately 3,300 reservations in the first nine hours ofintroducing the VF 5 in Vietnam in December 2022 At the 2023 CES, we unveiled our forthcomingVF 6 (B-segment) and VF 7 (C-segment) models The VF 6 is our electric SUV for the family-oriented driver The VF 7 is our driver centric electric SUV, accentuated by its futuristic styling Firstdeliveries of the VF 6 and the VF 7 are targeted for 2023 In June 2023, we introduced ourforthcoming VF 3, which is a mini car specifically designed for the Vietnam market The VF 3 isplanned to feature a 2-door design and seating for up to five people, with integrated basic smartfeatures We plan to offer the VF 3 in Eco and Plus trims We target to open pre-orders for the VF 3 inthe third quarter of 2023 and commence deliveries in late 2024.

We have achieved a great deal in our short history Following the founding of our company in2017, we achieved the start of production of our first ICE vehicle in only 21 months As a new entrantand the first Vietnamese automotive OEM, we have partnered with top-tier global companies,including Magna, Tata Technologies and Pininfarina to accelerate the integration of industry bestpractices into our processes Deliveries of our first fully-electric SUV, the VF e34, began in Vietnamin December 2021, deliveries of the VF 8 began in Vietnam in September 2022 and in the U.S inMarch 2023, and deliveries of the VF 9 and the VF 5 began in Vietnam in March and April 2023,respectively As of June 30, 2023, we sold approximately 18,700 EVs (consisting of approximately9,000 VF e34s and 7,500 VF 8s, other models and abuses) mostly in Vietnam In the second quarter

of 2023, we sold approximately 9,500 EVs, consisting of approximately 4,200 VF e34s, 3,400 VF 8s,other models and abuses As of June 30, 2023, we had reservations for approximately 26,000 VF e34,VF 5, VF 8 and VF 9 EVs globally Approximately 40% of the reservations had non-refundablereservation fees and the remainder were cancellable reservations with a nominal amount of refundablereservation fees First deliveries of the VF 6 and VF 7 are targeted for 2023 and first deliveries of theVF 3 are targeted for late 2024 See “Risk Factors—Risks Related to VinFast’s Business and Industry—VinFast’s long-term results depend upon its ability to successfully introduce and market newproducts and services, which may expose VinFast to new and increased challenges and risks.”

We quickly established significant brand recognition in Vietnam and within 18 months fromproduct launch, we gained the leading market share in Vietnam for each of our product segments,based on management’s analysis of publicly available data This share was acquired from theincumbent global vehicle brands from Asia, Europe and North America that have historicallydominated the Vietnamese market prior to our arrival Since our establishment, we have gainedsignificant experience in manufacturing at scale, which has helped us swiftly incorporate EVs into ourexisting assembly lines Like other entities within the Vingroup family of companies, turning early-stage businesses into market leaders through top-tier execution and leadership is a hallmark of ourapproach to business.

Our Electric Vehicles

Our electric vehicles are designed for the lifestyle of the modern EV adopter: tech-forward, end, and constantly-evolving We are passionate about providing high-quality, clean, sleek andpractical vehicles, tailored specifically to the end markets we are targeting on a vehicle-by-vehiclebasis We have worked with our globally-recognized design partners, primarily Pininfarina, to ensureeach of our vehicles offers a distinctive and unique style.

high-Our designs feature our signature lighting that frames our “V” logo and sweeps out to the cornersof the car This design element communicates our brand day and night Each vehicle segment iscreatively designed to fit the key characteristics and wants of drivers in that specific segment;including various proportions, in-cabin seating options, wheelbases and other key features Theoverarching character of our vehicles provides a comfortable and modern feel, while powerfullyrepresenting the VinFast brand.

Inside the vehicles, there is a unique blend of simplified technology and hand-craftsmanship Oneof the highlights of the interior is our proprietary, full-color heads-up display to put informationdirectly in the driver’s line of sight to keep attention on the road A large, high-quality touch screenminimizes the number of physical buttons and simplifies the user interface The soft interior trim in

each VinFast vehicle is hand-cut and sewn, creating a customer-tailored and luxurious driverexperience.

Vehicle Overview

Our EV platform consists of the following models:

• VF e34—our first EV offering, a C-segment electric SUV exclusively for theVietnam market We began delivering the VF e34 in Vietnam in December 2021.From a product launch perspective, we had great success with the launch of our VFe34, Vietnam’s first EV that we pioneered in 2021, setting records in Vietnam byreceiving over 25,000 reservations after three months, and receiving more than417,500 organic discussions on social media in the two days following theannouncement The VF e34 was voted the “Green vehicle of 2022” and “Favorite C-segment CUV in 2022” by Otofun and among the top 10 best-selling vehicles inVietnam in June 2022 according to VAMA, TC Group and our public sales report.

• VF 8—our first EV offering for the global consumer market, a D-segment electricSUV We currently offer two trims of the VF 8: Eco and Plus The Eco trim offers alonger driving range The Plus trim offers luxury features including a panoramicglass roof, leathered upholstery, a power-assisted tailgate and captain’s chairs for thesecond row We began U.S deliveries of the VF 8 in March 2023 from our initialU.S shipment of 999 VF 8 “City Edition” vehicles in both Eco and Plus trims InApril 2023, we dispatched a shipment of approximately 1,900 VF 8 (87.7 kWhbattery) that use battery components that result in a longer driving range than the VF8 “City Edition, and plan to deliver the VF 8 vehicles from this shipment to NorthAmerican customers in the second half of 2023 Deliveries in Europe are expected tobegin in the second half of 2023 We have no plans for future offerings of the VF 8“City Edition” in North America or Europe but will continue to offer this VF 8“standard driving range” option in Vietnam.

• VF 9—a sophisticated E-segment electric SUV featuring three rows of seats for theVietnam, North America and European markets We currently offer two trims of theVF 9: Eco and Plus We commenced delivery of the VF 9 in March 2023 inVietnam.

• VF 5—our A-segment electric SUV for the Vietnam market that offers dynamicyouthful styling, targeting first-time, budget conscious buyers We began accepting

reservations for the VF 5 in Vietnam in December 2022 and received approximately3,300 reservations in the first nine hours We currently offer the VF 5 with Plus trimand commenced delivery in April 2023 in Vietnam.

• VF 6—a B-segment electric SUV for the family-oriented driver for the Vietnam,North America and European markets We plan to offer Eco and Plus trims and firstdeliveries are scheduled for 2023.

• VF 7—a driver centric C-segment electric SUV, accentuated by its futuristic stylingfor the Vietnam, North America and European markets We plan to offer Eco andPlus trims and first deliveries are scheduled for 2023.

• VF 3—a contemporary and compact mini car EV designed for the Vietnam market.VF 3 is planned to feature a 2-door design and seating for up to five people, withintegrated basic smart features We plan to offer the VF 3 in Eco and Plus trims Wetarget to open pre-orders for the VF 3 in the third quarter of 2023 and commencedeliveries in late 2024

Overview of the electric vehicle industry in the world

Tesla reignited public interest in electric vehicles in 2008 Contrary to public opinion, EVsare not a new concept They have been around since the nineteenth century, with the first carproduced as early as 1828 However, the market never gained any significant traction and by 1912,high costs alongside limited research and development into advanced technologies resulted in a greatreduction in public interest.

General Motors managed to revive interest in 1996, when it started leasing programs for theEV1, an electric car with a range of 70-100 miles In 1999, the company also launched an upgradedversion equipped with nickel-metal hydride batteries and an extended range of 140 miles Eventhough 1,000 of these cars were manufactured, the project was later abandoned

The current buzz surrounding the EV industry can be largely attributed to Tesla, whichreignited public interest with the launch of its lithium-ion battery-powered Roadster in 2008 Thisproved to be pivotal, not only for Tesla but for other U.S companies as well—all of whom receivedgenerous funding from the U.S Department of Energy Tesla used the money to develop the hugelypopular Model S, therefore laying the foundation for increased adoption of EVs

However, despite the excitement surrounding EVs, the market has experienced 9 many falsestarts over the last decade Given that EV adoption rates stood at around 14% of the overall car marketin 2022, the global market is still very much at an ‘innovator’ phase of the product adoption curve.

The primary reasons for this include concerns around range, price, charging infrastructure, and, attimes— safety Additionally, there is a general consumer inertia about switching from the internal-combustion engine (ICE), which has been the dominant automotive motor type for decades.Moreover, the sharp fall in oil prices around the world, which began in 2020 has significantly loweredthe total cost of owning ICE vehicles, thereby driving their sales

One other reason for the slow adoption of EVs is the big ecosystem they are dependent on.While there is a huge number of gas stations all over the world, the number of charging stations is stilllow Additionally, charging stations from different providers use different charging methods, makingit even harder for consumers to know in advance how much it would cost to charge their EV

The history of electric vehicles started in the early 1800s, but only took off when Teslaentered the market and reignited public interest in electric cars In 2022, global electric vehicle salessurpassed 10.2 million units, an increase of 55% over 2021 Currently, Mainland China is leading theway with a market share of almost 58% Car manufacturers are pushing to bring out new electric carmodels and have big plans for the future The 2022 race for the highest market share was won by theTesla Model Y with 8%, followed by BYD Song Plus (BEV + PHEV) and Tesla Model 3 with 5%each, Wuling Hong Guang MINI EV with 4%, and BYD Qin Plus (BEV + PHEV) with 3%

The global plug-in electric vehicle market has witnessed robust growth over the last 10.2006.572 2019 2020 2021 2022 few years with sales increasing from around 120 thousand in 2012 to10.2 million in 2022, growing at a CAGR(1) of almost 56% Notably, the sales figure increased bynearly 55.2% in 2022 over 2021 Stringent government regulations on carbon emissions, subsidiesand other incentives, sharp reductions in battery prices, improvements in charging infrastructure, andthe rise of the environmentally responsible consumer are some of the factors that drove this growth.

It is safe to say that battery-powered vehicles are taking over the automobile market Thegrowth of the Electric Vehicles (EV) market has been significant despite the COVID-19 pandemicand the resulting supply chain bottlenecks Despite these recent challenges and rising production costsas a result of increasing raw material prices, EV sales are still going up at a fast rate If this continues,they are set to surpass the sales of conventionally propelled vehicles (i.e., vehicles with internalcombustion engines) Compared to 2020, sales of new electric vehicles more than doubled in 2021with an increase of 51.8% This brought EV sales to about 5% of global passenger car sales in 2021.

China conveniently topped the global sales charts in 2021 with more electric vehicles soldthan the rest of the world combined and almost five times more than Germany, which was in secondplace Factors responsible for the Chinese market’s exponential growth include but are not limited to,the Chinese government’s electric vehicle subsidies, an increasing range of mini electric vehicles, andmore affordable brands coming onto the market Overall, Europe recorded an increase between 2020and 2021, reaching about 66%, with the plug-in hybrid share of all electric vehicle sales being thebiggest in the world Driven by the availability of more models, as well as market expansion andpurchase incentives, the European market is expected to continue along this trend as countries withinthe EU adopt stricter CO2 emission standards and move toward zero-emissions vehicle mandates.

Regardless of the tremendous growth in the Electric Vehicles market, it is only limited to apart of the world As the race to full electrification continues, China, Europe, and the U.S account forabout 95% of the global electric vehicle sales, whereas the rest of the world seems to struggle withcatching up In addition to government subsidies just getting introduced or still being nonexistent, thetop reasons cited for the slow progress experienced in those parts of the world include the lack ofpublic charging infrastructure and the premium prices of electric vehicles in these regions.

There are five major drivers of the electric vehicle market: government policies, the Teslaeffect, lower battery costs, 5G rollouts, and the launch of the Battery-as-a-Service model.Governments are trying to achieve their emission goals set out in various global agreements and havedevised various incentive schemes to increase electric vehicle sales While electric vehicles are amajor step towards achieving environmental goals, Tesla managed to fuse this with high performanceand aesthetics, thereby playing a pivotal role in changing the industry’s overall appeal The significantreduction in the prices of battery packs is also driving mass adoption of 2 of these vehicles Further,5G rollouts and new business models such as Battery-as a-Service are expected to drive futuregrowth

Five main challenges hinder the adoption of electric vehicles: lack of infrastructure (such ascharging stations), high upfront costs, lack of consumer knowledge and wrong perceptions, pressurefrom oil companies and the car manufacturer lobby, and potential long-term effects of the COVID-19pandemic Not only are charging stations still very few and far between, but they are also usuallymanufactured by different suppliers without a standardized charging and payment system In addition,high upfront costs make electrical vehicles less attractive than traditional internal-combustion enginecars, mainly due to the high battery costs which often account for as much as 50% of the total vehiclecost.

Autonomous driving and electric cars go, without a doubt hand in hand Thanks to easierintegration and component control, it is easier to realize self-driving cars using electric vehicles ratherthan vehicles with internal combustion engines While the U.S has been pioneering this trend,Mainland China will be the market leader Despite the challenges, lithium-ion batteries are stillexpected to dominate the battery market for electric vehicles.

This is mainly because the development of new battery technologies is both very expensiveand complicated Moreover, Mainland China’s domination of the lithium-ion battery supply chain isexpected to come to an end in the medium to long term, as the U.S and Europe are gaining morecontrol over various elements of the supply chain Interestingly, quantum computing is expected tosignificantly disrupt the electric vehicle industry, resulting in higher battery ranges, new productlaunches, and autonomous driving Due to their low operating costs, electric vehicles are also part ofthe ride-sharing movement, with many car manufacturers launching electric car-sharing operations.Moreover, the demand for related electronics and software is expected to grow significantly over thenext few years

Lithium-ion batteries dominate the market mainly because they deliver the highest range at alower cost when compared to any other battery However, due to limitations such as long chargingtimes, size, heavy weight, and limited battery capacity, companies such as Toyota, Volkswagen,Nissan, and Tesla are now investing in solid-state, lithium-sulfur, and zinc-air batteries for their futuremodels Further, universities, technology companies, and independent battery start-ups arecollaborating to develop other types of batteries, such as aluminum-ion, smart membranes, andgraphene-based supercapacitors to enable faster charging times 3 and longer life cycles

Rising pollution levels, potential operational cost savings, and heavy dependence on publictransportation are the three major factors driving the gradual switch from hydrocarbon-based toelectric public transport The total number of electric buses in the world is expected to witness a 235%increase from 800,000 in 2022 to about 2.7 million in 2030, with Mainland China accounting for ashare of more than 96% Financial support from the government, a large urban population—and theresultant pollution, a lack of traditional transportation infrastructure, global trade, and increased publicawareness are the five key reasons for Mainland China’s dominance

Tesla is the most recognized electric vehicle (EV) brand in the world In 2022, combinedsales of the Model 3 and Model Y totaled 1,247,146 units Tesla’s success is primarily attributed to itsaesthetics and longer ranges compared to other EVs BYD is one of the largest selling brands inMainland China, but its focus on international markets is limited The company’s top-selling brand in2022 was the Han with sales of over 274,015 units Volkswagen sold a total of 572,100 EVs in 2022,up 26% from the 452,839 sold in 2021 The other European player, BMW, has 14 EV models in itsportfolio and had over 2 million electric vehicles in circulation by the end of 2022

In terms of charging infrastructure, Mainland China once again leads the pack with more than1,760,000 publicly accessible charging points, followed by South Korea (approx 201,000), the U.S.(approx 128,000), and the Netherlands (approx 124,300)

Mainland China is by far the market leader, not only in Asia but also worldwide PEV sales amountedto over 4,400,000 units in 2022—nearly 175 percent more than the combined PEV sales in Europe.South Korea, Japan, and India are the other leading markets in Asia As for e-LCVs, Mainland Chinaand South Korea account for an 86% share in the Asian market, with combined sales of over 167,500units in 2022

Overview of Vietnam's automotive industry

The automotive industry has always been a major contributor to the GDP of major economiesin the world, accounting for 3.25% of the GDP of the United States, 5% of China's GDP, 4% ofGermany's GDP, and 12% of Thailand's GDP In Vietnam, the automotive industry accounts for 3%of the country's GDP It is precisely for this reason that the industry has always received specialattention and treatment from the government In addition to ATIGA (and possibly the upcomingEVFTA), trade agreements have always provided exceptions for the automotive industry to protect itfrom pressure from competitors from around the world.

The contribution of the automotive industry to GDP

Compared to regional countries, domestic producers have weaker competitiveness The scaleof the Vietnamese automotive market is too small to allow car manufacturers to invest in componentproduction According to Toyota Vietnam, the annual sales of components must reach around 50,000units to make investments This means that a car must produce 50,000 units within a year, which istwice the current sales model The incentive measures for small-scale and attracting auxiliaryinvestment are still unclear, which limits Vietnam's production to assembly This makes the cost ofcars produced in Vietnam 10-20% higher than that of major manufacturers in regions such asThailand and Indonesia.

The changing business environment Up to now, Vietnam has signed 17 free trade agreementswith countries and blocs, of which 10 have taken effect A quite special thing about the signedagreements is that two industries such as Automobiles and Steel are always treated very specially andare usually not on the list of tax lines that are exempted or reduced, except ATIGA and possibly theupcoming EV-FTA

The natural consumption growth rate is at 10.5% without government promotion measures Aclear correlation between car consumption and GDP per capita and the number of cars per 1000 canbe seen people of countries Currently, Vietnam is still in the early stages of the growth cycle Thereasonable consumption growth rate for Vietnam is about 10.5%/year if looking at the correlationwith GDP per capita of countries in the region When GDP/person increases by 1%, car consumption/person increases by about 1.5% However, the growth rate may also be higher and reach about 12 -15%/year in the next 10 years if car prices decrease and stimulus measures such as banningmotorbikes in inner cities become a reality

Correlation of income - car consumption

If not influenced by government policies and other incentive factors, the annual growth rate ofautomobile consumption will reasonably increase by 10.5% There is a clear correlation between carconsumption and per capita GDP with the number of cars per country for 1000 people Currently,Vietnam is still in the early stages of its growth cycle Considering the per capita GDP of variouscountries in the region, Vietnam's reasonable consumption growth rate is about 10.5% per year Whenper capita GDP increases by 1%, car consumption increases by about 1.5%.

The Vietnamese automotive industry is in a growth stage There is a lot of room for growth,as the proportion of households owning new cars is only about 2% The main mode of transportationfor Vietnamese people is motorcycles Given the government's emphasis on policy changes to drivegrowth in the automotive industry, we believe that people's opportunities to access automotiveproducts will significantly increase The price of cars will be more in line with the income of mostpeople, and the choices in low-priced segmented markets will be more diverse than before Thegrowth prospects will vary according to the environmental, legal, and economic conditions at eachstage However, we believe that if the Vietnamese economy grows more sustainably than ever before,the Vietnamese automotive industry will maintain strong long-term growth In addition, from 2023 to2028, the number of active cars per 1000 residents in Vietnam is expected to continue to increase,totaling 1.9 vehicles (over 7.15%) After the fifth year.

In 2014, the output of cars produced in Vietnam reached about 134 thousand units andcontinuously increased over the years In 2020, due to the impact of COVID 19, car productiondecreased from 287.12 to 257.55 thousand units compared to 2019 By 2023, car production inVietnam will reach about 347,4 thousand units, increased compared to the previous year.

In 2023, passenger car sales account for the largest proportion of total vehicle sales inVietnam, with approximately 214.6 thousand units In that year, total car sales in Vietnam amountedto about 276.4 thousand units.

Continuing the breakthrough success of more than a decade of the passenger car market in2022 In 2023, passenger car sales in Vietnam reached about 214.62 thousand units In that year, the

units

Specifically, in 2023 Northern Vietnam is considered the largest passenger car market withabout 92,530 units sold, accounting for 43.1% of total sales In comparison, passenger car sales in thesouthern region of the country amounted to 82,246 units.

The concentration of Vietnam's automotive industry is moderate to high According to datafrom the Ministry of Industry and Trade, Nma in Vietnam has 50 automobile manufacturingcompanies, 45 producing chassis, body and body, and 214 producing automotive parts The number ofenterprises in Vietnam is much lower than 385 in Malaysia and 2500 in Thailand The four major carmanufacturers THACO, Toyota, Hyundai, and Ford hold 75% of the market share THACO ranksfirst with two major brands, Kia and Mazda, followed by Toyota with a market share of 19% andHyundai with a market share of 18% In November 2018, the HHI (Herfindahl Hirschmann Index)market share of the Vietnamese automotive industry was 1698.57, and according to the index, theautomotive industry is considered to have a medium to high concentration.

In the past decade, the value of domestic automobile imports has fluctuated In 2014, thevalue of Vietnam's automobile imports was approximately 1.57 billion US dollars, which increasedsignificantly to 2.99 billion US dollars in 2015, but continued to decline over the next three years In2018, due to negative feedback from various countries, non-tariff barriers faced difficulties inrestricting imports, resulting in imports being affected In 2023, Vietnam's automobile importsamounted to approximately 2.83 billion US dollars, a significant decrease from the previous year

Changes in industry structure are happening more strongly than ever Although the growth ofdomestic car consumption is easy to see, the Vietnamese Automobile industry is also greatlyinfluenced by industry changes in the world Bloomberg calls the current moment in the Auto industrya time of unprecedented change Electric cars are becoming more popular than ever when they cansolve the problems of urban pollution, climate change, depletion of fuel sources from oil andespecially the commitment of the participating parties The United Nations Framework Convention onClimate Change, at its 26th conference (COP26), self-driving systems are also being strongly investedin and developed as a basis for countries including Vietnam to pay attention Pay special attention tothe development of electric vehicles For that reason, car manufacturers and suppliers are investinglarge sums of money in research and development activities to stay ahead of new trends

Electric vehicles are currently divided into many types:

- HEV: Vehicles still mainly run on internal combustion engines (ICE) However, when usingthe brakes or when going downhill, the electricity produced will be loaded into the battery and thiscurrent helps run the electric motor that supports the internal combustion engine

- PHEV: Vehicle combining electric motor and internal combustion engine With this type ofvehicle, electricity will be charged directly into the battery to provide power for a larger electricmotor

- BEV: Vehicles that only use electric motors, not internal combustion engines Vehiclemodels that use larger electric motors will help provide better starting ability because thecharacteristic of electric motors is to achieve extreme torque great at low rpm But the quick start willaccelerate tire wear and reduce tire mileage by 1/3 compared to before.

Vietnam's electric vehicle market is still in the initial stage of development Vinfast is the firstautomobile manufacturer in Vietnam to produce battery cars The total sales volume of electricvehicles in Vietnam still accounts for a small part of the total car sales in the whole market, but due tothe successful launch of Vinfast, there has been a significant increase recently Besides Vinfast, othercar manufacturers have started to sell electric vehicle products, but in terms of imports: Porsche,Tesla, Mazda, Audi, Nissan, BMW, Ford, Hyundai, Honda, Kia and Mitsubishi most companiesonly carry out small-scale distribution, import is the main thing, and the sales volume is limited Thisis a cautious move by auto companies, because it is the early stage of the development of Vietnam'selectric vehicle market.

Opportunities and challenges faced by Vietnamese enterprises.Opportunities:

Vietnam's automobile industry has not mastered the core technology since its establishment.Manufacturers still rely on importing raw materials from Vietnam to assemble finished products.These problems greatly limit the formation of a solid technical development platform for theautomobile industry However, objectively speaking, the development of Vietnamese cars, especiallyelectric cars, is a pity and a golden opportunity that must be seized Based on factors such asproduction transfer trend, technical ability and market preconditions, Vietnam is a country that candevelop and transform the automobile industry, especially electric vehicle production, into a regionaladvantage In recent years, the trend of foreign investors moving their factories out of China is due tothe Covid-19 epidemic, trade wars and other issues China is controlling the global supply chain,which worries investors The Department of Defense needs to find and transfer the supply chain to

countries with safer markets Vietnam is an ideal place for foreign investors to trust Japan's NomuraFinancial Group said that East Asia and Southeast Asia were the preferred destinations for 56companies in 2018-2019 Specifically, 28 enterprises moved to Vietnam.

The challenge:

In fact, there are many challenges in the development opportunities of electric vehicles inVietnam The main concerns are: the ability to master technology and technology; Vehicle pricefactor; Policy and legal corridor for developing electric vehicle trade in Vietnam.

Ability to master technology: It can be said that this is the most critical factor for Vietnam'sautomobile industry, especially electric vehicles, to surpass and catch up with regional competitors orsurpass Toyota, Ford, General Motors and other large manufacturers that have occupied the marketposition At present, although VINFAST is an automobile factory in Vietnam, it has invested a lot ofmodern equipment and offered solid human resources, and plans to develop electric vehicles tooccupy the domestic market and to develop in the United States, Australia and other big countries.However, it must be emphasized that most technologies and processes still need to be undertaken byforeign expert teams, rather than by Vietnamese manpower In addition, the current situation ofelectric vehicles is still insufficient, which is a great challenge for scientists, professional engineersand manufacturers in the world, so that they are still careful to study and solve these problems in thenear future This requires a lot of money, as well as research ability and original product developmentexperience This is a big challenge for the electric vehicle industry in Vietnam.

Factors affecting the price: It is clear that GM in Vietnam is a very expensive product forpeople Even for electric vehicles, the actual production cost is much higher than that of fossil fuelvehicles According to the general cost, the maintenance and repair operation cost of electric vehiclesis lower than its normal life cycle However, this is correct only when the sustainable energydevelopment technology is completed from power generation mode, infrastructure for providingelectricity for automobiles, in-vehicle power conversion mode, or in other words, battery technology.The current solutions are not really convincing, because the reliability of batteries has not beenproved, and they are the main obstacles to the production cost and replacement cost.

Core competencies and factors creating competitive advantage

Vietnam's electric vehicle market is still in its early stages of development According toAssociation members, sales of Vietnamese automobile manufacturers will reach more than 400,000units in 2022, if sales of VinFast and TC Motor (the unit that assembles and distributes Hyundaipassenger cars in Vietnam) are included Vietnam), Vietnamese people have bought more than500,000 cars (not including car sales of imported car brands, accounting for 30 - 40% of the total carsales in recent years) The Ministry of Industry and Trade forecasts that the country's automobile

demand in 2025 according to the average plan will be about 800,000 - 900,000 vehicles and by 2030about 1.5 - 1.8 million vehicles When shifting from gasoline to electric vehicles, the demand forelectric vehicles will be huge, with the goal that by 2030, 22% of two-wheeled motorbikes will beelectric vehicles Many large cities such as Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, and CanTho have planned to eliminate gasoline motorbikes in the inner city by 2030 Car market share, datafrom the Vietnam Register shows that the electric car market share is currently just over 1%, but is onthe rise If in 2020 there were only 900 electric cars, then in 2021 there will be more than 1,000 carsand in 2022, VinFast's two pure electric car models alone, VFe34 and VF8, achieved sales of morethan 7,000 units (not including monthly data September - October 2022)

Besides, as a Vietnamese, VinFast always wants to create its own products and not importthem from any other country VinFast aims for a sustainable future for everyone and everyone.through the production of green, clean and safe transportation vehicles

Following its US debut at the 2021 LA Auto Show, VinFast is taking important steps towardsa sustainable transportation future as it announced it will stop producing cars with internal combustionengines ( ICE) by the end of 2022 VinFast focuses on research and development efforts for fullyelectric engines for their vehicles This makes VinFast one of the first automobile companies in theworld to switch to pure electric vehicle production, affirming its leading position in the global EVrevolution.

Increasing manufacturing operations in Vietnam with an on-site complex will provide costsavings and logistical efficiencies for parts and supplies Our manufacturing operations in Vietnamhave significant cost advantages for sourcing and components as approximately 60% of electricvehicle components (excluding batteries) are sourced from local suppliers Vietnam Most of them areestablished international suppliers, based on the total value of parts manufactured or packaged inVietnam as a percentage of total shipping costs as of September 30 /2022 The company currently hasseveral key suppliers on-site in Hai Phong such as ZF, Forvia and Lear Corporation VinFast said it isplanning to expand its complex in Hai Phong with suppliers from Korea and China VinFast hasrelationships with about 620 other suppliers globally One of their most important partners is VinES, amajor battery supplier and in the process of developing battery manufacturing capacity in Vietnam.“We expect battery cells produced by VinES to eventually be included in battery packs VinES is inthe process of building a gigafactory (super factory) in the Central region to expand battery packproduction capacity In addition, VinES is developing a second lithium battery production facility inHa Tinh, Vietnam, in cooperation with Gotion."

Technology is at the core of its platform and the company has invested significantly in itstechnology platform to deliver the safest possible driving experience for drivers

Research and development activities and product innovations will differentiate VinFast'selectric vehicle experience internationally with premium features, including infotainment, driverassistance, ADAS and other improvements Currently, VinFast's research and development team

includes more than 800 internal staff, experts (including 140 software engineers) and leverages theexpertise of engineers and developers at related technology companies important in the Vingroupecosystem

Forecasting supply and demand and investment capital portfolio of the electric vehicle market

With electric vehicle industry investment projects invested from FDI and DDI capital sources,electric vehicle industry projects invested in Vietnam are quite regular every year Although thegrowth rate is not uniform Growth is especially high in 2022 thanks to investment projects in theelectric car industry.

Project growth rate

Allocate number of project by quantity

The main investment projects in Vietnam are processing and assembly, accounting for 77% ofthe total investment projects The component production project is mainly used for electricvehicles and has only emerged in recent years

The project is mainly distributed in northern provinces, especially in Haiphong, Beining,Yongfu, etc There are only a few small project investments in Ho Chi Minh City, PingyangProvince in the south In the central provinces, only Ha Tinh is the location of the Vinfastbattery factory.

Predicting the number of electric vehicles in Vietnam from 2028 to 2040 (Unit: million vehicles)

It is expected that the sales of electric vehicles in the Vietnamese market will at least doublethis year "By 2023, we expect the sales of electric vehicles in Vietnam to increase by 114.8%compared to the same period last year, reaching approximately 18000 units," said a report released byBMI last week.

It is expected that the sales of pure electric vehicles in Vietnam will increase by 104.4% on-year in 2023, reaching nearly 17000 units At the same time, sales of plug-in hybrid vehicles(PHEVs) may increase nine times compared to the same period last year, reaching nearly 1100 units.We now expect that from 2023 to 2032, the sales of electric vehicles in Vietnam will increase by anaverage of 25.8% per year, reaching an annual sales volume of approximately 65000 vehicles, higherthan the 8400 vehicles in 2022.

year-According to BMI's estimation, the penetration rate of electric vehicles (defined as theproportion of electric vehicle sales to total vehicle sales) will increase to 13.6% by 2030 This is aleap from 2.9% in 2022 Vietnam Automobile Manufacturers Association Forecast.

VinFast's industry

The global economy is expected to continue to recover with the easing of COVID-19restrictions According to Frost & Sullivan, the GDP per capita in major advanced economies, such asthe U.S and Europe, is expected to increase at CAGRs of 3.5% and 4.2% from 2022 to 2028 which,coupled with increased spending power lays a solid foundation for the recovery of the globalpassenger vehicle market In addition, the reopening of manufacturing facilities and efforts to restoresupply chains should further increase the production of passenger vehicles in the long run Frost &Sullivan also expects that the passenger vehicle shipment is expected to recover to pre-COVID level

by 2025 and to reach 79.1 million units in 2028, representing a CAGR of 3.6% from 2022 to 2028.The U.S and Europe markets are expected to account for 18.3% and 21.3% of global market in 2028,respectively, according to Frost & Sullivan.

By offering premium quality EVs with luxury-level features at a competitive price point, we believewe are well-placed to penetrate our addressable markets, gain market share in the EV market andpotentially convert more ICE customers to new EV users Our target addressable market (“TAM”)1which comprises the overall passenger vehicle markets in the U.S., Canada, Europe and Vietnam, isexpected to reach $1.3 trillion, representing an annual shipment of approximately 34.0 millionvehicles by 2028, according to Frost & Sullivan Frost & Sullivan also forecasts that passengervehicles with prices over $40,000 are expected to become the fastest growing segment, with annualshipment expected to increase from 15.5 million units in 2022 to 22.9 million units in 2028,representing a CAGR of 6.7% from 2022 to 2028 Vehicles within this price segment can offer moresatisfying user experience to customers in terms of driving performance, interior designs, and value-added services.

We stand to benefit from favorable industry trends in the EV market We expect to unlockfurther growth of the EV market by addressing key pain points in the EV industry includingconsumers’ anxiety associated with charging duration and range, limitations on charginginfrastructures, cost of battery ownership and high upfront costs To address these pain points, we areoffering several innovative solutions For example, our battery subscription program, which isavailable in certain select markets (primarily Vietnam) and models, reduces the burden of batteryownership and lowers the upfront price of purchasing and owning EVs Our battery subscription

program will also include the provision of a replacement or repair in case the battery capacity fallsunder 70% for the duration of the battery lease This is expected to further facilitate the adoption ofEVs and reduce customer’s anxiety around battery adoption Our at-home smart charging solutionscoupled with access to a dense charging network through our e-mobility platform is expected toreduce charging anxiety for customers.

In terms of product portfolio, we anticipate that our focus on electric SUVs will allow us tocapitalize on the strong growth of the electric SUV segments in our focus markets which, according toFrost & Sullivan, have an estimated CAGR of 35.9% from 2022 to 2028 in terms of annual shipment,and are expected to increase its market share from 56.1% in 2022 to 71.4% in 2028 At the initialphase of our global roll-out, our focus will be on the fast growing mid- and large-sized vehicle (C-E)segments.

Growth Trends in the EV Market

The growth of EV market far outpaced the overall market and is expected to further accelerate in thenear term

The share of global EVs as a percentage of total passenger vehicles has increased more than fivetimes from 2.1% in 2019 to 11.7% in 2022, and is expected to reach 39.2% in 2028, according toFrost & Sullivan Frost & Sullivan also reported that the shipment of EVs in North America, Europeand Vietnam reached 2.1 million in 2022, with a share of 8.1%, and is expected to reach 10.5 millionshipments in 2028, with a share of 31.0% By 2028, the annual shipment of EVs in the U.S andEurope is expected to account for over 30% of the global EV market.

C, D and E EV segments are expected to show particularly strong growth prospects

All EV segments are expected to grow at high double-digits in our focus markets and this trend isexpected to be even stronger for C, D and E segments due to their long driving range, large passengerspace, and attractive interior design, according to Frost & Sullivan We opened reservations for ourVF 5, VF 8 and VF 9 models to capture the fastest-growing A-, D- and E-segments, respectively, in2022, and plan to next open reservations for our VF 6 and VF 7 models to capture the rapid growth inthe B- and C- segments The Eco trims of the VF 8 and VF 9 models with our battery subscriptionprogram are also priced within the cross-over ranges of segments C and D, D and E, respectively,which we believe can help our cars to capture a larger TAM because of their competitive price points.

Electric-SUV markets outgrow other vehicle types

According to Frost & Sullivan, consumers are more willing to purchase EVs with higherquality and performance, more intelligent functions, and smarter interior design, which includefeatures such as longer lasting battery, longer driving range, larger passenger space, ADAS, in-carentertainment, and 4G/5G connectivity Compared with other vehicle types, electric-SUVs withhigher performance capabilities can better support consumers’ various usage scenarios like familytransportation, off-road driving and long road trips In our focus markets, the market share of electric-SUVs in relation to the overall EV shipment is expected to increase from 56.1% in 2022 to 71.4% in2028, according to Frost & Sullivan.

EVs within the price segment of $40,000 or above offer better driving experience

As the largest segment in terms of annual shipment, the annual shipment of EVs over $40,000 inour focus markets is expected to reach 7.1 million units in 2028 at a CAGR of 28.6% from 1.6 millionunits in 2022, accounting for a market share of 67.0% in 2028, according to Frost & Sullivan.According to Frost & Sullivan, EVs within this price segment can offer better driving experience interms of powertrain, interior and exterior designs, and overall experience of ownership, whichconsumers are increasingly willing to pay for.

Key Industry Tailwinds and Growth Drivers

Development of charging infrastructure

Increasing availability of charging infrastructure has become an industry trend as the EVmarket continues to grow, addressing one of the concerns of consumers making the switch to EV.Although there are various stakeholders, such as OEMs and charging service providers, that areincreasing their investments into charging infrastructure, governments are still key drivers leading thedevelopment of charging infrastructures For example, in the U.S., the Bipartisan Infrastructure Lawwill invest $7.5 billion to build a national network of EV chargers This investment is intended tosupport President Biden’s goal of building a nationwide network of 500,000 EV chargers to acceleratethe adoption of EVs According to Frost & Sullivan, the charging network in the U.S is expected toexpand rapidly with number of charging points increasing from 0.3 million in 2022 to over 1.6 millionin 2028 at a CAGR of 35.7% In Europe, between 2022 and 2028, the number of charging points isexpected to expand from 0.6 million to over 2.8 million at a CAGR of 27.9% Ultra-fast charging isalso expected to be the next generation of charging solutions with majority of global EVmanufacturers already considering ultrafast charging (150 kW to 350 kW), which will reducecharging time from 30 minutes to 15 minutes.

Increase in battery density and reduction in costs of battery packs backed by enhancement of batterytechnologies