The VinFast Fadil is a US$17,000 compact hatchback with big ambitions. From its shiny new factory in the northern Vietnamese city of Haiphong, the company behind it is targeting initial production of 250,000 vehicles a year – just a few thousand less than Vietnam’s entire annual car sales for 2018.Ultimately it plans to increase production to 500,000 annually, as well as pushing out up to 12 other models of cars, SUVs and electric motorbikes in the next two years.
VinFast is a subsidiary of the sprawling Vingroup, Vietnam’s largest private conglomerate that started out making instant noodles, built its name in real estate and has since diversified into retail, education and healthcare among other fields.. All indications are that, at a global level, these new technologies seem to be the future of car manufacturing.However, it’s important to look at the realities of the Vietnam’s physical infrastructure which is a long way from being able to support either electric vehicles or driverless cars.
This is commonly seen as a watershed point at which economists say spending on cars and other big ticket consumables starts to ramp up significantly. Sales for new cars in Vietnam picked up almost 20 per cent more in the first five months of this year, compared to the same period in 2018. The ruling Vietnamese communist party’s economic reform programme, Doi Moi, launched in 1986, transformed Vietnam in little more than a single generation, delivering rapid growth to an economy that up to then had struggled to recover from the turmoil of war.
To progress, the government wants manufacturers to produce more sophisticated, high-value products, pinpointing the automotive manufacturing as a strategic “spearhead” industry.
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Source: BusinessTimes - 🏆 15. / 51 Read more »
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