topic the supply demand situations in the market of vinfast electronic vehicles and offering recommendations for improvement

According to statistics on the Global Electric Vehicle Outlook of the International Energy Agency IEA, Markets for electric cars are expanding exponentially, with sales expected to reach

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY

FACULTY OF FINANCE UEH

UNIVERSITY

GROUP ESSAY TOPIC: THE SUPPLY, DEMAND SITUATIONS IN THE MARKET OF VINFAST ELECTRONIC

VEHICLES AND OFFERING RECOMMENDATIONS FOR IMPROVEMENT

Ho Chi Minh, 11 November 2023

1

Mai Linh FNF002 | 31231023050 | linhmai.31231023050@st.ueh.edu.vn Dao Xuân Vũ ENF002 | 31231020581 | vudao.31231020581@st.ueh.edu.vn

Trần Anh Kiệt ENF002 | 31231021719 | kiettran.31231021719@st.ueh.edu.vn

TABLE OF CONTENT

PREAMBLE .:.:ssssssssssescssseecsvsvsvecsvsvevevsvevsuenevevenenevenenessnsnesensnsnesensnesessnvavesavavaeesavavevsvavevenavevevenaveveneneveneeees 4 Reason for choosing this ŸỌC - LH Hình HH HH HH HT Tà HT Tư TT Tư nh in in 5

VD Tmt urctiionnen 10 2 Products and Services «0.0.2 cece 11 2.1 The formation and developIe€RIL xà Hà Hà Hà Hà HH HH HH Hà HH HH tk 11 2.2 A brief overview of Vinfast's electric vehicle

1 SWOT Analysis 2 _ Offering recomimenndatÏONS - Gà HH TH TH HH HH nh non HH Hà ĐH 37

PREAMBLE First of all, we would like to sincerely thank lecturer Nguyen Thanh Trieu - lecturer of the Faculty of Finance for enthusiastically teaching and guiding students throughout the course During the time since we started studying at school until now, we have received a lot of care and support from teachers and friends Thanks to the teacher's timely advice and instructions, we overcame difficulties when writing our group's essay

But after all, we realize that with our own little knowledge and experience, we will certainly avoid many shortcomings We personally look forward to receiving comments from you so that our essays can be better

Sincerely thanks, Group 4

Reason for choosing this topic Although determining the number of motor vehicles on the world is an inexact science ; the number is rising quickly About 2 billion vehicles are estimated to be on the roads by 2035, according to a report from Navigant Research The availability of fossil fuel energy sources on Earth declines and environmental pollution becomes a more pressing issue causing many car manufacturers around the world to turn to the production of electric vehicles to replace vehicles using internal combustion engines as an inevitable trend According to statistics on the Global Electric Vehicle Outlook of the International Energy Agency (IEA), Markets for electric cars are expanding exponentially, with sales expected to reach 10 million by 2022 In just three years, the percentage of electric vehicles in overall sales has more than tripled, rising from 4% in 2020 to 14% in 2022 EV sales are expected to continue strongly through 2023 Over 2.3 million electric cars were sold in the first quarter, about 25% more than in the same period last year

2016 2017 2018 2019 2020 2021 2022 2023 @ China @ Europe © UnitedStates @ Other

Picture 0.1: Electric car sales, 2016-2023

(Source:International Energy Agency)

Given this unavoidable tendency, Vinfast has declared that it will only produce electric vehicles by the end of 2022 Up to now, Vinfast has made a lot of substantial achievements In 2019, Vinfast is the first brand to be awarded “New Car Brand with High Commitment to Safety” from New Car Assessment Program for Southeast Asian Countries (ASEAN NCAP) VinFast is steadfast in its commitment to prioritizing client safety With 4-5 star certification, all three car lines —VinFast Fadil, Lux A2.0, and Lux SA2.0—meet ASEAN NCAP requirements In 2022, The community's OTOFUN and OTOSAIGON voting for "Car of the Year 2022" has recognized VinFast as the "Most Popular Car in the Segment" for all 4 car models, including Fadil, Lux A2.0, Lux SA2.0, and VF e34 Even though VinFast had to contend with formidable rivals that had been on the market for a considerable amount of time, its first three products all took the top spot VinFast has established a solid presence in the home market and shown that local consumers trust the brand thanks to its growth through this award According to Nhan dan newspaper, in the second quarter of 2023, VinFast achieved total revenue of up to 334.1 million USD, a 303.3% increase over the first quarter of the same year Delivery of 9,535 electric vehicles generated the majority of revenue throughout that time

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Picture 0.2: Top 10 best-selling cars in May 2023

Source: Tuôi trẻ news)

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Picture 0.3 : Number of electric vehicles delivered

(Source: Thoi bdo tai chinh) Consequently, group 4 studied Vinfast Limited Liability Company's electric vehicle product supply and demand scenario.In this essay, our group investigated customer demand for electric vehicle items and the company's sales and marketing plan, highlighting benefits in terms of cost, quality, and availability Finally, use a SWOT analysis table to make judgments about the business's benefits and drawbacks as well as its potential and difficulties Our group also came up with a number of ideas and solutions to assist companies in reaching their objectives and improving their business plans In addition, our group also came up with a number of suggestions and solutions to help businesses achieve their goals, thereby coming up with better strategies for their business

CHAPTER 1: THEORETICAL BACKGROUND 1.Demand

Demand is the amount of goods or services that consumers are able and willing to purchase at various prices within a given period of time, with other conditions remaining unchanged

The quantity demanded of any good is the amount of the good that buyers are willing and able to purchase

Law of demand: the claim that the quantity demanded of a good falls when the price of the good rises, other things equal

Demand-affecting factors:

Increasing in price of complemented goods Ds Decreasing in price of ¬

Di substitute goods D2 Q D2 Di

a

Picture 1.3:An increase in the price causes Picture 1.4: an increase in the price causes : : i

-Tastes

Items are more utilized

Items are less utilized

Picture 1.5: Changing customer preferences will result in a change in the demand curve -Expectation: affect consumers’ buying decisions

2.Supply Supply is the amount of goods or services that the producer is able and willing to provide at various price points over a specified period of time, with other conditions remaining

Supply-affecting factors: -Input prices:

Increasing in input price

Decreasing in input price

higher price CHAPTER 2: DESCRIPTION

1 Introduction VinFast Manufacturing and Trading Co., Ltd

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In 2017, VinFast Manufacturing and Trading Limited Liability Company was established as a Vingroup Joint Stock Company member by Mr Pham Nhat Vuong This is also the 7th core business of Vingroup with the head office located in Haiphong and is a Vietnamese manufacturer of electric cars and motorcycles Vinfast is an abbreviation of Vietnam (-VIN) - Style (phong cách -E) - Safety (an toan —-A) - Innovation (sang tao —-S) - Pioneer (tiên phong - T) and the meaning of the VinFast car company logo V is to represent Vietnam, Vingroup and Rise (vươn lên —V)

Shareholders Three shareholders jointly own VinFast as of September 30, 2022: Asian Star Trading & Investment (15%), VIG (33.48%), and Vingroup (51.52%)

Board of Managements Management type: Vertical

2 Products and services 2.1 The formation and development VinFast Trading and Services Company Limited was established in June 2017 September 2, 2017 officially started construction of the VinFast electric motorbike and car production complex

November 3, an electric motorcycle factory was opened, and VinFast Klara, the company's first product, was introduced to the Vietnamese market

March 24,The VinFast VF E34, Vietnam's first smart electric car line, officially went on sale

March 2021, 3 car lines VinFast Fadil, VinFasts Lux A2.0 and VinFast Lux SA2.0 won the "most popular car line in the segment" award voted by consumers across the country

July 12, VinFast will formally launch in five markets across Europe and North America

December 15, VinFast gave customers access to the VF e34, Vietnam's first smart electric vehicle

VF9 at CES 2022 and revealed its pure electric strategy and full product line

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January 15, 2022 VinFast is the car company most highly rated for service quality at the Car Awards 2021 ceremony organized by VnExpress-Xe January 15, 2022, VinFast Fadil and VinFast Lux A2.0, respectively, were chosen as the "Car of the Year" in the compact car size A and sedan size D-E categories during the Car Awards 2021 event, which was hosted by VnExpress-Xe

20 January 2022 In two categories, VF e34 became victorious: "Most popular popular car priced under 1 billion" and "Most desirable electric car" in the "Exquisite Voting 2021" program

March 29, 2022, a memorandum of understanding was signed by VinFast with the state government of North Carolina, USA, regarding the construction of VinFast's first production facility in the North American market

30 March 2022 VinFast is still the "Most Popular Car in the Segment" for all four car models—the Lux A2.0, Lux SA2.0, VF e34, and Fadil— according to the community's OTOFUN and OTOSAIGON vote for "Car of the Year 2022"

April 7, 2022 The journey of 111 VF e34 vehicles to conquer Sa Vi - the northeasternmost point of the country was honored with the record of "The largest electric vehicle caravan in Vietnam”

on April 26, 2022 VinFast introduces five new generation electric motorcycle models with LFP batteries

July 14, 2022: California's first six Vinfast stores open April 7, 2022 The journey of 111 VF e34 vehicles to conquer Sa Vi - the northeasternmost point of the country was honored with the record of "The largest electric vehicle caravan in Vietnam”

April 26, 2022 VinFast launches 5 new generation electric motorbike models using LFP batteries

July 14, 2022 Opening of the first 6 Vinfast stores in California November 25, 2022 999 Vinfast VF8 electric cars exported to the US, the first time Vietnamese electric cars enter the global market

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2023

e March , delivered the first 45 Vinfast VF8 City Edition vehicles to clients in the United States formally launched their company in the US market

¢ July 28, Started factory construction in the US August 15, 2023 Listed on Nasdaq Global Select Market

2.2 A brief overview of Vinfast's electric vehicle VinFast electric motorcycles impress with their modern styling and clever features and functions VinFast has introduced 13 electric motorcycle models with a range of styles and competitive pricing to cater to the needs of different client segments

e ELECTRIC MOTORCYCLE MODELS IN THE MIDDLE-LEVEL SEGMENT INCLUDE VinFast Ludo, VinFast Impes, VinFast Tempest, VinFast Evo 200, VinFast Feliz, VinFast Feliz S, VinFast Klara A2, VinFast Klara S, VinFast Klara S 2022

e ELECTRIC MOTORCYCLE MODELS IN THE PREMIUM SEGMENT INCLUDE: VinFast Vento, VinFast Vento S, VinFast Theon, VinFast Theon S

motorbike is a brand-new model that the company introduced in April 2022 Bright Red, Red Orange, Pearl White, Charcoal Blue, Yellow, Gray, and Matte Black are the seven available colors for the automobile

maximum speed of 70 km/h and a travel range of 200 km after a full charge

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available for the Klara S 2022 are pearl white - black, dark red-green- black, dark blue-black, and luxurious

characteristics of the new Klara S version include a maximum capacity of 3,000W, a travel range of up to 194 km on a fully charged battery, maximum speed of nearly 80km/h

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Smart and modern VinFast electric cars Up to now, VinFast has introduced 6 electric c

ar models, spread evenly from class A to class E

standards, the VF e34 can go up to 285 kilometers after the battery is fully charged After only roughly eighteen minutes of charging, the automobile can travel up to 180 km thanks to the fast charging mode Convenient features: The VF e34 has an integrated driver aid system

VinFast VF 9 electric car - E class SUV

The VinFast VF 9 is a powerful,

athletic, and incredibly stylish kind of electric car for the E-class To provide customers more options, the VF 9 model comes in two versions: VF 9 Eco and VF 9 Plus The VF 9 has excellent, contemporary features that enhance the owner's driving experience

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VinFast VF 7 electric car - C-class SUV The VF 7 electric car model has a

unique design, attracting all eyes unlike its "brothers" Angular details and squareness create a_ strong exterior overall, equipped with a panoramic sunroof, helping car occupants enjoy natural light and fresh air

For those who want dynamism and sportiness, the VinFast VF 6 is the best option available in the B-class SUV market The inside features a sizable central screen and practical control buttons below, all in a

adaptable shape make it ideal for maneuvering through cities and small streets It is highly valued for the passenger compartment and has

embossed features, and rounded lines on both sides of the body with exceptional colors that draw all eyes

CHAPTER 3: MARKET 1 Demand: 1.1 Consumer income :

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The standard of living is increasing day by day, accompanied by the need to own users’ own vehicles Choosing a car is not difficult, the thing to pay attention to is how much income you should buy a car to optimize costs and ensure comfort

Monthly income ranges from 10-20 million VND Less than 20 million VND per month is often the earnings of young, unmarried individuals who wish to have their own vehicle for personal experiences If you wish to acquire an automobile, this budget range is thought to be fairly risky Buyers will need to budget carefully in order to cover monthly costs for living, food, drink, and other essentials because, in addition to the indicated selling price, car maintenance also comes with a high cost Additionally, you need to have some extra cash on hand to cover costs associated with driving, such as petrol, parking, maintenance, etc

Customers with this level of income should go for compact, four- to five-seat vehicles that cost between 500 and 600 million VND, which will save them an extra three to five million VND a month on car maintenance

If your financial situation prevents you from meeting your full payment capacity, you can think about purchasing your dream car through installments In addition to helping to lessen the financial burden, this type allows clients with an income of 20 million to still have money left over after making installment payments for investments or other activities

Monthly income from 20-30 million VND Those with an average monthly income of between 20 and 30 million VND won't feel too much strain when it comes to deciding how much money to spend on an automobile These are typically young people or families that need a car of their own to suit their needs for family travel or for business

If you have a strategy and adequate funds with an income of roughly 20-30 million VND, you can get a car All you have to do is choose a car that is reasonably priced and balance your spending.Buyers can think about owning sedans or, to save money, they can choose to buy a mid-sized SUV in installments In light of this cost, the buyer must fairly balance and compute the monthly expenditures if they wish to purchase a car with a bank interest loan

Monthly income over 30 million VND

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The majority of this will come from high-earners’ finances, who are frequently business owners or have big families Therefore, having a car is necessary for showing up for class, traveling for business, and buying a vehicle for extended trips with lots of luggage for families With this amount of money, people can purchase and own an automobile with confidence Customers do not have to worry about monthly payments and car maintenance fees interfering with their everyday lives if they opt for the installment payment option and have monthly resources of above thirty million This budget is suitable for huge SUVs, luxury

sedans, or even more expensive cars

It has been demonstrated that owning a car will be easier for those with greater incomes when it comes to the topic of what income level is appropriate In order to effortlessly own their preferred car, it is ideal for a buyer to have a clear financial strategy when they are planning to get one

1.2 Customer taste Young customers are drawn to electric automobiles, which are steadily gaining popularity and catering to a worldwide market because they embrace green living trends, pursue current technology, and strive to safeguard the environment with new environmentally friendly vehicles

Today's young consumers are between 20 and 35, have economic independence, and have average to high-income levels Besides, new-age customers also pay special attention to popular trends They care about convenience, modern technology, and environmentally friendly transportation

In Europe: Up to half of young consumers want to purchase an electric car, according to a survey done in the UK, one of the top European markets for electric vehicles Furthermore, a recent study reveals that owning at least one electric car is more common among those between the ages of 24 and 34

Young people also voiced concerns about the cost of driving electric cars, battery life, and the scarcity of charging stations in this nation through polls conducted at Lancaster University (UK) Nonetheless, the majority of respondents voiced optimism for the future growth of the electric vehicle trend It provides incentive for British automakers in particular, as well as automakers worldwide, to upgrade and improve their electric vehicles

In Asia: Young people in China and Thailand are also drawn to electrified cars

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According to the findings of a recent poll, Chinese customers wish to acquire a green automobile for their own use in transportation The proof is that a domestic mini-electric car with a super cheap price (only 4,500 USD, equivalent to 107 million VND) has become an extremely popular car line among young people in this country With a top speed of 100 km/h, its small size makes it ideal for young individuals who value ease More precisely, auto owners can customize the look of their vehicles with seat covers, accessories, stickers, and other items based on their personal tastes Many individuals have been drawn to it since it allows them to designate a certain area and display their individuality inside their car

On the other hand, because they care about the environment, young people in Thailand are also drawn to the green car movement Cost and ecological consciousness are significant elements influencing young consumers’ purchase selections "From the Land of the Golden Temple"

In Vietnam,with the launch of VinFast's first line of electric vehicles, the electric car trend has gained popularity and shown indications of "rejuvenation" in the Vietnamese market The VF e34 electric car has garnered great feedback since its inception, and after just over three months of sales, it achieved an amazing milestone with 25,000 online deposits It indicates that consumers who belong to "Gen Y and Gen Z" are starting to favor internet buying There are four main things attract young people to purchase a VinFast EV:

e Using renewable energy: Vehicles using renewable energy operate entirely on electric engines and do not emit carbon dioxide, contributing to protecting air quality According to environmental experts, an electric car can help save 1.5 million grams of CO2 in a year

e¢ Technologization: Electric cars now offer a very convenient and safe driving experience thanks to AI technology, machine learning, and 5G network characteristics, in addition to environmentally friendly features Smartphones and cars are increasingly being connected, allowing users to operate anywhere with a single touch VinFast has installed this capability on the VF e34 electric car model via a specially created application Users can monitor all vehicle status metrics, operating history, battery status, and set up assistance features using a smartphone when the car and phone are connected

e Preferential sales policy when buying VinFast electric cars: Young buyers frequently consider the price while making a purchase They want to own products but still ensure full amenities In addition, appealing incentives and promotions play a part in drawing in clients in the modern day However, the practice of shopping in installments has also grown in popularity

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in recent years For young consumers who wish to own a high-quality product line while saving money, this is an affordable solution

¢ Cost savings than gasoline cars: Another significant factor contributing to Vietnamese consumers’ gradual transition to electric vehicles was the difficulty of traveling due to the shortage and rising cost of petroleum In the first 6 months of 2022, domestic gasoline prices were continuously pushed up In one instance, the price of fuel "skyrocketed" above 30,000 VND per liter Able to continue everyday travel, drivers of gasoline-powered cars will incur significant costs

Additionally, there was a gasoline scarcity in a few major cities, including Hanoi and Ho Chi Minh City, in October and November of 2022 Numerous petrol stations have shut down and ceased operations People must wait in lengthy queues to get petrol, and in some situations, they must go obtain gas at night to escape crowds

Generally speaking, driving an electric vehicle is less expensive than driving a gas-powered vehicle Driving an electric car will be far more cost-effective than driving a gas-powered vehicle for people with high mobility needs When "rare gasoline" is scarce, as it is today, opting for an electric vehicle is thought to be a better option In reality, many people who own electric cars do not wish to switch back to gasoline vehicles after experiencing and comparing the differences

1.3 Consumer expectation 1.3.1.Prices:

To have some overview about price, we have to compare it to other well-known brands