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Is VinFast Destined To Be the Next Proton?

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Pacific Money | Economy | Southeast Asia

Is VinFast Destined To Be the Next Proton?

The Vietnamese EV maker is hoping to establish itself as a leading regional player, but so far its decision-making has been questionable.

Is VinFast Destined To Be the Next Proton?

A Vinfast VF8 electric SUV on display at the Jacobs Javits Center in New York City, United States, April 13, 2022.

Credit: Depositphotos

Vietnamese electric vehicle maker VinFast has been making waves with its aggressive plan to enter the highly competitive global EV market. Its listing on the Nasdaq earlier this year took the stock on a wild ride, and VinFast is currently building a $4 billion factory in North Carolina which will give it a production base in North America. What VinFast is not doing–at least not yet–is selling a lot of cars or making a profit. The company reported a $623 million net loss in the third quarter of 2023.

There is a reason few home-grown car companies, and even fewer from emerging markets like Vietnam, attempt what VinFast is attempting. The reason is that it is hard. The global auto industry is competitive. It is dominated by a couple of big brands from Japan, America, South Korea, Europe and, increasingly, China. It involves large upfront capital costs, extensive supply chains and long-term investment in R&D.

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