Beyond the Vietnamese market, the VF 3 is VinFast’s answer to the global SUV craze — a clever mix of market insight and local expertise. It has garnered significant attention since its global debut at CES 2024 earlier this year.
The VinFast VF 3 enters the market at a time when small cars are becoming increasingly rare. In recent years, automakers have shifted their focus to larger vehicles — from sedans to SUVs — due to higher profit margins and perceived customer demand for more space and a commanding road presence. As David Bailey, a professor of business economics at the University of Birmingham, noted in The Guardian1, “If a firm produces a small car that takes up space on the production line, that represents an opportunity cost where they could make a more profitable bigger car.”
However, the launch of the VF 3 signals a possible return to smaller, more affordable vehicles, driven by the rising cost of living. This shift also coincides with growing scrutiny of larger vehicles for their environmental impact. Gas-powered SUVs, for example, weigh up to 200 kilograms more than smaller cars and have a larger frontal surface area, which increases drag and fuel consumption.
The VinFast VF 3 addresses these concerns by offering a more compact, eco-friendly alternative. With dimensions of 3,190 x 1,679 x 1,622 mm and a wheelbase of 2,075 mm, it’s perfectly sized for city life. Additionally, its operating costs, including battery rental, are expected to be minimal compared to the cost of running a typical gas-powered car in Metro Manila.
Last month, VinFast began delivering the first batch of VF 3 vehicles to customers in Hanoi and Ho Chi Minh City, ahead of schedule. By the end of 2024, VinFast aims to deliver at least 20,000 units of the VF 3. Early adopters in Vietnam have shared their positive experiences with the VF 3:
“With an electric motor generating over 40 horsepower and a maximum torque of 110 Nm, I feel confident using the VF 3, even on terrain with many hills and slopes,” customer Le Chi Trung said.
“Being an electric car, the VinFast VF 3 accelerates quickly from a stop, even with four adults on board. It’s quiet inside, and at high speeds, it doesn’t feel like it’s ‘floating’ on the road. The steering is light, perfect for city driving or for female drivers,” commented another customer, Nguyen Ngoc Quang.
Smart Product Positioning
VinFast’s success with the VF 3 isn’t only due to its affordability. The company has also positioned the VF 3 as a lifestyle product, appealing to those looking for both functionality and self-expression. The car comes in nine exterior paint options — four standard and five premium colors — allowing owners to personalize their vehicle.
The Next Frontier: The Philippines
Building on its success in Vietnam, VinFast is preparing to bring the VF 3 to the Philippines and other markets. This move makes sense, as Vietnam and the Philippines share similar demographics, cultural characteristics, and economic conditions.
With a price point expected to be below Eight Hundred Thousand Pesos (PHP 800,000), the VF 3 makes for an enticing choice for Filipino consumers considering the switch to electric vehicles. Its features are also well-suited to local road conditions.
For example, with a ground clearance of 191 mm, the VF 3 can comfortably handle potholes and speed bumps. Its compact and nimble design is ideal for navigating the narrow, congested streets of Metro Manila.
As VinFast expands beyond Vietnam, the VF 3’s success story could continue in the Philippines and beyond. Offering affordability, customization, and an eco-friendly alternative to gas-guzzling SUVs, the VF 3 is more than just a car; it’s a symbol of change in Southeast Asia’s evolving automotive landscape.
