VinFast, a relatively new player in the automotive industry, has achieved a remarkable feat. After just over two years since fully committing to electric vehicles (EVs), the company has emerged as one of the leading car brands in Vietnam. This success highlights Vietnam as one of the few countries where a domestic EV manufacturer competes effectively against established foreign gasoline car brands.
While this success may appear to be a domestic triumph, its implications stretch far beyond Vietnam’s borders. VinFast’s growth serves as a potential example for other Southeast Asian nations that are now beginning to explore leadership in “green transformation,” transitioning from passive participants to active drivers of sustainable innovation.
A New Era for Southeast Asia
Southeast Asia, home to over 600 million people, has historically been viewed as a market for consumer goods rather than a hub of innovation and production. For decades, the region was primarily an importer of technology and industrial products, with local industries struggling to establish themselves as leaders in high-tech sectors.
Take Vietnam as an example. Its automotive industry has long been dominated by foreign brands, particularly Japanese and Korean manufacturers. Recent statistics from Vietnam’s Ministry of Industry and Trade show that the automotive industry imports up to 80% of its production components.
However, VinFast’s ability to hold its own where foreign automakers have traditionally dominated demonstrates the changing landscape in the country and, to a certain extent, in the broader region. It’s a clear indicator that local companies can evolve to meet regional needs, just like what VinFast has been doing by focusing on three core values—“premium-quality products, inclusive pricing, and exceptional after-sales service.” These factors resonate strongly with Southeast Asian consumers, especially as the region’s middle class continues to grow.
In the Philippines, the green transition has been gaining momentum, supported by government initiatives such as the Electric Vehicle Industry Development Act (EVIDA) and the ongoing push for sustainable energy sources. VinFast’s entry into the country aligns well with these trends, offering Filipino consumers access to high-quality, affordable electric vehicles that meet the rising demand for sustainable transportation.
The company’s rise also reflects growing green consumer trends in Vietnam and across the region, where there is increasing demand for environmentally friendly products and sustainable transportation solutions. This momentum aligns with global trends, positioning Southeast Asia as an emerging force in sustainable development.
VinFast Shows It Can Be Done
It’s hard to imagine an established legacy brand accomplishing what VinFast did in just two years, the time since it transitioned to a pure-play EV company. The EV maker launched seven fully electric vehicle (EV) models, along with e-buses, e-scooters, and e-bicycles, expanded into international markets, and built an extensive charging network in Vietnam to accommodate its growing customer base.
This kind of speed is synonymous with VinFast, ever since its inception seven years ago, when Vingroup, one of Vietnam’s largest private enterprises, founded the company with a bold vision to enter the automotive industry. Under the leadership of visionary billionaire Pham Nhat Vuong, VinFast quickly built the Haiphong factory in just 21 months—a record-setting pace that laid the foundation for its ambitious plans.
Initially, VinFast focused on gasoline-powered vehicles, but its strategic decision to transition entirely to electric vehicles in 2021 marked a pivotal moment in its growth. This shift aligned with global sustainability trends and positioned the company at the forefront of Southeast Asia’s green energy transition.
But why electric? Vuong revealed his reasons in 2023: “[Vingroup created VinFast] because we feel the need to contribute to society, not just to do business. A large, successful enterprise with certain capabilities has a duty to contribute to its homeland.” To Vuong, that contribution means a mission to build a technology brand synonymous with quality, capable of competing with the best the world has to offer.
Connecting this to the bigger picture, each country in Southeast Asia has billionaires like Pham Nhat Vuong. While many Southeast Asian countries have business leaders with significant influence, VinFast stands out as a trailblazer, showing that a local company can not only enter the competitive automotive market but also lead in electric vehicle innovation. VinFast has become a champion of green transition, proving that with ambition, vision, and rapid execution, seemingly impossible goals can be achieved.
A New Player’s Biggest Proof of Commitment
As part of its broader strategy to expand within Southeast Asia, VinFast entered the Philippine market earlier this year. The company has already introduced two electric vehicle models—the VF 5 and VF 3—both designed to be affordable entry points to their EV lineup.
The VF 5 is particularly noteworthy, having propelled VinFast to the top of the Vietnamese EV market. In fact, by August of this year, it had outsold all of its ICE competitors in the A-SUV segment combined in Vietnam. This success isn’t by accident. The compact model offers features rarely seen in its class, including blind spot monitoring and rear parking assist.
Vietnamese customers have reported significant savings when switching to the VF 5. Mr. Do Van Bon switched to a VF 5 and found his daily fuel costs drastically reduced. Where he once spent 300,000 VND (around Php 700) or more on gasoline per day, he now spends around 140,000 VND (around Php 300) to charge his VF 5. This combination of advanced technology and affordability gives the VF 5 a significant advantage over its competitors.
Similarly, Filipino drivers stand to benefit significantly from the switch to electric vehicles. With rising fuel costs in the Philippines, the cost savings of switching to a VF 5 could be substantial. For example, a typical daily fuel expense of Php 700 could be reduced to around Php 300 for electricity—similar to the experience in Vietnam. This makes EVs an attractive option for cost-conscious Filipinos looking for both sustainability and practicality.
VinFast’s Commitment to the Philippine Market
Starting with affordable EVs shows VinFast is serious about its long-term commitment to the Philippines. This is further demonstrated by its growing dealership network and participation in the upcoming 12th Philippine Electric Vehicle Summit.
While brand recognition remains a challenge, VinFast’s proven success in Vietnam, where it overcame similar hurdles, suggests it has the potential to replicate that success in the Philippines. The VF 5 and the recently-launched VF 3, with their compelling combination of advanced technology, affordability, and proven performance, are poised to make a significant impact on the Filipino automotive market.
VinFast’s commitment to the Philippine market is underscored by its rapid expansion of its dealership network, aiming to make electric vehicles more accessible to Filipinos. The brand is also working closely with local partners to build a reliable charging infrastructure, ensuring that EV owners can conveniently charge their vehicles, thus addressing one of the primary concerns among potential Filipino buyers.
In summary, VinFast’s journey from a young company to one of Vietnam’s top automotive brands in just over five years is more than a story of corporate success—it is a symbol of what Southeast Asia can achieve when it embraces the future and commits to sustainability. As VinFast continues its expansion into the Philippines and beyond, it carries with it the aspirations of a region looking to play a more prominent role in the global electric vehicle industry.
The Philippine government’s strong support for electric vehicle adoption, including tax incentives and infrastructure development, provides an encouraging environment for VinFast’s growth. By participating in local industry events and working alongside policymakers, VinFast is positioning itself as a key player in helping the Philippines achieve its sustainability goals.
VinFast’s rise sends a powerful message to other Southeast Asian nations: they, too, possess the talent, resources, and determination to lead the global shift toward green energy and sustainable innovation. This is not just Vietnam’s success; it is a victory for all of Southeast Asia and a testament to the region’s growing influence on the world stage.
