A report submitted to the department of international business and management in partial fulfillment for the

As of 2021, the company has launched six models,including the VinFast Lux A2.0 sedan, the VinFast Fadil hatchback,and the VinFast President luxury SUV VinFast, 2021a.. VinFast hassold ov

BUSINESS PLAN REPORT

VinFast’s Segway

THE UNIVERSITY OF DANANG

VNUK INSTITUTE FOR RESEARCH AND EXECUTIVE EDUCATION

Our team members name:

1 Phan Ngo Minh Tan - 22010015

2 Le Kha Dung - 21010084

3 Dinh Viet Huy - 21010061

2023-07-19

1 Introduction 4

2 Chapter II Company - Global Environment 5

a Company Background: 5

i Business Structure: 5

ii Company’s Milestones: 6

iii Company’s Name and Slogan: 7

iv SWOT analysis of VinFast: 7

a Company Environment 8

i Eco-friendly transport industry: 8

ii Internal Environment: 8

iii External Environment: 8

i Competitor Analysis: 8

5 Benefits To The Community 9

a Ethics: 9

b Clients: 9

c Partners: 9

d Shareholders: 10

e Staff: 10

6 Social Responsibility 10

ii Product standard: 10

iii Social contributions: 10

iv Sustainable: 11

7 Workforce: 11

8 Management Team And Process Of Decision-Making 11

9 Management team 11

10 Labour Force 12

b Job description: 12

c Job application: 12

d Orientation plan 12

e Benefit 12

i Culture: 12

ii Compensation: 12

iii Welfare 13

iv Other benefits: 13

f Policies 14

i Vacation policies: 14

ii Insurance policies 14

iii Working charge policies 14

iv The policy of developing Human Resources through skills and expertise training throughout the working process 14

g Manufacturing And Operation: 15

11 Advantages and Disadvantages of the location: 15

a Wage rates: 15

b Labor pool: 15

c Types of delivery methods: 15

d Tax rates: 15

12 Facilities: 15

13 Suppliers: 16

b Marketing : 16

i Target Customer 16

1 Demographics 16

2 Geographics 16

3 Psychographics 16

4 Product-usage 16

ii How does VinFast Group satisfy customers’ needs? 17

1 How do products effectively meet these needs? 17

2 How they are different from those currently in the market 17

iii Marketing Mix 4Ps 17

c Product: 17

d Price 17

e Place: 17

f Promotions: 17

14 Factors Affecting Marketing Efforts 18

a Political and Economic Factors 18

b Socio-cultural Factor 18

15 Marketing Objectives 18

a Product introduction, improvement, or innovation 18

b Sales or market share 18

c Information And Accounting System 18

16 Competitors’ information gathering 18

17 Management information system 18

18 E-business: 19

19 Accounting system: 19

b Financial Plan And Analysis 19

i Realistic budget: 19

ii Project Income Statement 19

iii 2023 Projected Balance Sheet 19

c APPENDIX: 19

20 Organizational Chart 19

a Conclusion 20

b References 20

1 Introduction

a VinFast is a Vietnamese automotive manufacturer led by Pham NhatVuong that aims to become a leading brand in Southeast Asia byproducing affordable and technologically advanced vehicles (VinFast,n.d.) Since its establishment in 2017, VinFast has made significantinvestments in building a modern manufacturing complex in HaiPhong, Vietnam, with an annual production capacity of 250,000 units(VinFast, 2021a) As of 2021, the company has launched six models,including the VinFast Lux A2.0 sedan, the VinFast Fadil hatchback,and the VinFast President luxury SUV (VinFast, 2021a) VinFast hassold over 60,000 cars in Vietnam and exported them to severalcountries (VinFast, 2021a)

b VinFast is also focused on developing electric vehicles (EVs) and hasintroduced several models, including the VinFast VF e34, VF e35, and

VF e36 The VF e34 won the "2020 Urban Car of the Year" awardfrom the World Car Awards, and the VF e36 was named "Best EV of2021" by the Vietnam Automobile Manufacturers' Association(VinFast, 2021a; VinFast, 2021b)

c VinFast has received significant investment from both domestic andinternational sources, including a $500 million investment fromGeneral Motors in 2018 (VinFast, 2021a) The company has also

partnered with leading automotive suppliers and technology

companies, such as BMW and Siemens, to develop its vehicles(VinFast, n.d.)

d This is the business plan in charge of the newly developed productcalled VinFast’s Segway, which would be by VinFast There are a fewreasons why we decided to develop this new product Firstly, this is aninnovation in means of transport due to the traffic congestion andpollution worldwide As these problems are mentioned, we areamazed to realize this will be a unique selling point of the product.Secondly, with the high-quality material with which these products aremanufactured, we firmly believe that they would attract a largepercentage of customers, mainly from the metropolitan area Inaddition, with eco-friendly transportation, our product is one of theupcoming trends in the next three years

e This report will showcase the fundamental details of VinFast'sbusiness plan, encompassing its company history, communityadvantages, workforce, manufacturing and operations, marketing,accounting system, and financial analysis

2 Chapter II Company - Global Environment

a Company Background:

i Business Structure:

1 VinFast is a Vietnamese automaker that strives to be a topSoutheast Asian brand by creating cost-effective andtechnologically innovative cars (VinFast, n.d.) Thecompany has invested heavily in constructing a modernmanufacturing facility in Hai Phong, Vietnam, capable of

producing 250,000 vehicles per year since itsestablishment in 2017 (VinFast, 2021a)

ii Company’s Milestones:

1 VinFast has achieved several notable milestones since itsestablishment in 2017:

2 September 2018: VinFast made its public debut at theParis Motor Show, where it unveiled two models, theVinFast Lux A2.0 sedan and the VinFast Lux SA2.0SUV

3 June 2019: VinFast started construction on a 335-hectaremanufacturing complex in Hai Phong, Vietnam, which iscapable of producing up to 250,000 vehicles per year

4 November 2019: VinFast unveiled its first electricvehicle, the VinFast VF e34, at the Vietnam Motor Show

5 March 2020: VinFast announced that it had received alicense from the State of California to test autonomousvehicles on public roads

6 April 2020: VinFast started exporting vehicles to markets

in Europe, including Germany, France, and theNetherlands

7 June 2020: The VinFast VF e34 won the "2020 UrbanCar of the Year" award from the World Car Awards

8 January 2021: VinFast announced that it had developed aprototype for a battery electric vehicle (BEV) that can becharged in just 20 minutes

9 June 2021: VinFast launched three new electric vehiclemodels, the VF e35, VF e36, and VF e37, which aredesigned for different segments of the market.

iii Company’s Name and Slogan:

1 VinFast means: Style; Safe; Creativity; and Pioneering.The word “ Fast” is taken from the first letter of the fourcriteria (the letter Ph is changed to F)

2 The slogan “Mãnh liệt tinh thần Việt Nam” meansdesirable to go up when manufacturing the product inorder to improve their qualities and become a world-classmanufacturer in the world

iv SWOT analysis of VinFast:

Strengths:

Strong financial backing from Vingroup

JSC, one of Vietnam's largest

sustainability, with a focus on electric

vehicles

Focus on creating a unique, Vietnamese

brand that is both high-quality and

affordable

Using high-quality materials in order to

manufacture transportation products

Relatively low production capacitycompared to established automakers

Opportunities:

Growing demand for electric vehicles

globally

Opportunities to expand sales networks

and distribution channels in new

markets

Opportunities to expand product

portfolio to include other sustainable

mobility solutions

Threats:

Intense competition from establishedautomakers in the global electricvehicle market

Rapidly changing regulatoryenvironment for electric vehiclesPotential supply chain disruptionsand raw material shortages

b Company Environment

i Eco-friendly transport industry:

1 VinFast has sold over 30,000 cars and 60,000 electricscooters and electric bicycles in the domestic market as

of 2021 (VinFast, 2021b) In addition, VinFast has startedexporting vehicles to Europe, with initial sales volumesexpected to be around 3,000 units per year (VinFast,2021a)

ii Internal Environment:

1 Active and friendly working environment with manypromotions:

2 Welfare for employees:

3 Competitive salaries depending on capabilities andproductivity

4 Trained to become better

5 Free health care provided and vacations in Vingroup

iii External Environment:

Political - Legal Economic Social - cultural Technological International

3.

i Competitor Analysis:

1 Vinfast has to compare intensively with other competitors

in this industry:

2 Ninebot: A Chinese company that acquired Segway in

2015 and produces a range of personal transportationdevices, including electric scooters and self-balancinghoverboards

3 Xiaomi: A Chinese electronics company that produceselectric scooters, electric bicycles, and other personaltransportation devices

4 Razor: An American company that produces electricscooters, electric bicycles, and other ride-on toys

5 Swagtron: An American company that produceshoverboards, electric scooters, and electric bicycles

6 Gotway: A Chinese company that produces electricunicycles and electric scooters.

4 Benefits To The Community

a Ethics:

b Clients:

i Building trust by being honest, providing safety and

convenience to customers about prices, products, and services,and creating fairness and equity by avoiding

c Partners:

i Treating partners with respect and professionalism, maintaining

a courteous and professional demeanor, and avoiding anybehavior that could be perceived as disrespectful or

unprofessional Moreover, protecting partners' confidentialinformation and respecting their privacy means ensuring thatany information shared with them is kept confidential and usedonly for the intended purpose

e Staff:

i Prioritize the health and safety of their employees, providing asafe and healthy work environment and taking steps to preventinjuries and accidents Treating employees with respect and

professionalism, maintaining a courteous and professionaldemeanor, and avoiding any behavior that could be perceived asdisrespectful or unprofessional.

5 Social Responsibility

i Beside its remarkable achievements, VinFast always looking forsocial responsibility in order to improve our society

ii Product standard:

1 VinFast always imposes the latest standards, especially inISO 9001, in order to make their products better but alsoreduce carbon emissions and greenhouse gas emissions,which have lots of negative impacts on the environmentiii Social contributions:

1 VinFast is committed to supporting and developing thecommunity by actively creating and participating insocial and community programs The company strives to

be a leader in promoting social and communitydevelopment and aims to make a positive impact onsociety

iv Sustainable:

1 VinFast is committed to using Energy-efficient facilities

in order to reduce their impact on the environment.Moreover, they are looking for sustainable materials,such as recycled plastics and bio-based materials, in theirvehicle production to reduce the environmental impact oftheir products

6 Workforce:

7 Management Team And Process Of Decision-Making

a Leadership styles: The leadership style at VinFast Segway is

characterized as collaborative and inclusive The company placesimportance on receiving input from all team members and fosters anenvironment of open communication and feedback The leaderemphasizes the importance of innovation, sustainability, and customersatisfaction

8 Management team

Hoang Quoc Hung Chief Financial Officer

Nguyen Viet Thanh Chief Operating Officer

9 Labour Force

a Requirement: all of Vinfast need to have professional ethics, a sense

of responsibility, professional knowledge, leadership skills, andcreativity Our company is always looking for talented people who canmake a positive contribution to its development and have the trust andsupport of our team

2 Reward employees according to their level of completion

of personal goals, creating work motivation This willhelp to motivate employees to work hard and achievetheir goals

3 Create a healthy emulation environment for employees todevelop their full potential, and promote the Company'sstrong development This will help to create acompetitive environment where employees are motivated

to do their best

4 Meet the recognition needs of the employees as a means

to widely announce the achievements and personalefforts that the Employees have shown This will helpemployees feel appreciated and valued for their

iii Welfare

a The company pays for two types of compulsoryinsurance (health and social insurance) Thisincludes providing employees with 24/7 insurancecoverage, which will help minimize the financialrisk they face if they become ill The company alsowants to make sure that its employees feel safe andwell cared for, and this includes providing themwith access to quality healthcare services

iv Other benefits:

1 Fully equipped with labor protection, following the law

2 Bonus monthly salary 13

3 Health insurance, and social insurance right after signingthe official labor contract

4 Allowance for mid-shift meals and overtime meals

f Policies

i Vacation policies:

1 Every staff member at VinFast has the opportunity tohave a free vacation in Vinpearl-the most luxurioushospitality accommodation in Vietnam for Taking care ofemployees' spiritual lives, regenerating the labor force,and improving labor productivity

ii Insurance policies

iii Working charge policies

1 Taking care of employees' spiritual life,regenerating the labor force, and improving

g Manufacturing And Operation:

10.Advantages and Disadvantages of the location:

a Wage rates:

i According to data from Glassdoor (2021), the average monthlysalary for a VinFast employee in Vietnam is approximately 15million VND (equivalent to around $650 USD) However,salaries can vary widely based on factors such as job title andlevel of experience For instance, software engineers at VinFastcan earn an average salary of around 30-40 million VND permonth (equivalent to around $1,300-$1,700 USD), whileproduction operators may earn around 7-8 million VND permonth (equivalent to around $300-$350 USD) VinFast’s staffalso enjoy a free vacation in Vinpearl, free healthcare in

Vinmec’s accommodations as well

b Labor pool:

i there are more than 10 board members and more than 25,000staff members currently employed

c Types of delivery methods:

i because of its idealistic nature and location, VinFast offers lots

of delivery options, such as roads, airplanes, and ships

12.Suppliers:

a VinFast has many suppliers domestically and internationally VinFasthas suppliers for raw materials and equipment, such as Bosch andBMW, and one for logistics, especially UPS

ii How does VinFast Group satisfy customers’ needs?

1 How do products effectively meet these needs?

2 How they are different from those currently in the marketiii Marketing Mix 4Ps