An Unprecedented Commitment in Vietnam
VinFast has recently announced an unprecedented commitment to providing genuine auto parts and components in Vietnam. Starting from September 1st, the maximum time for VinFast to provide parts and components for car repairs under the after-sales service policy will be 24 hours.
This commitment is specifically for their electric vehicles in the Vietnamese market and is the first of its kind in the country.
Inside VinFast’s service workshop.
VinFast has invested in a system of transit warehouses across the country and established an optimized operation process, interconnecting the factory, central warehouse, transit warehouses, and service workshops to make this commitment possible.
The company’s latest commitment is a testament to its customer-centric philosophy and reinforces its core values of providing “Good Cars, Affordable Prices, and Excellent After-sales Service.”
It also reaffirms VinFast’s commitment to accompanying the transition to electric vehicles, ensuring maximum convenience and satisfaction for Vietnamese users.
A first-of-its-kind commitment in Vietnam.
The announcement also highlights the significant expansion of VinFast’s national distribution system, with the addition of numerous units, including those transitioning from internal combustion engine vehicles. By the end of this year, the network of authorized showrooms and service workshops will reach nearly 150 locations nationwide, becoming the largest network in Vietnam.
In addition to its extensive dealer network, VinFast also has access to the largest charging station system in the country, with approximately 150,000 charging ports across all 63 provinces.
The Tip of the Iceberg
The commitment to providing genuine auto parts and components within 24 hours in Vietnam is seen as a bold strategy.
This commitment is not only related to production and distribution strategies but also involves a larger story upstream – from raw material procurement to the supply of finished products (midstream) and their delivery to customers (downstream).
Long line of Ford vehicles waiting for parts in May 2021 due to supply chain disruptions. Photo: Pat and Mike Roeder
VinFast’s commitment is highly appreciated, especially considering the significant impact of global supply chain disruptions, particularly during the COVID-19 outbreak.
At the end of 2019, the COVID-19 pandemic caused a decline in global car sales. However, this can be described as the calm before the storm, as its aftermath continues to affect global manufacturers; the most notable example being the semiconductor chip shortage, which also forced VinFast to delay some of its major plans.
Post-COVID-19, geopolitical issues such as the conflict between Russia and Ukraine have also prompted global manufacturers to re-evaluate their supply chains, especially since Ukraine is a major supplier of wiring harnesses for European carmakers.
The number of components in a car can reach tens of thousands.
The industry has also faced significant challenges due to inflation (higher production costs) and human resources issues. These problems can be attributed to disruptions in factory operations and the temporary or permanent closure of workplaces during the COVID-19 pandemic, leading to labor shortages as workers sought alternative employment to sustain their livelihoods.
Inside VinFast’s factory.
Commenting on supply chain issues, Mr. Wade Phillips, president of the leading automotive consulting firm Seraph, stated, “Those days of thinking we can buy everything from China, assemble it in Mexico, and bring it into the US to sell are over.”
Mr. Phillips emphasized the need for managers to pay more attention to the production process and risk management. He also suggested that meticulous planning for unforeseen events could help address significant challenges such as the COVID-19 pandemic.
Will VinFast bring this model to international markets?
Returning to VinFast, to fulfill its commitment, the company has addressed or prepared for all upstream supply chain issues, ensuring smooth midstream production at its factories, and ultimately delivering on its promise to downstream customers.
VinFast’s strong commitment to the Vietnamese market is commendable, as it not only benefits consumers but also demonstrates the company’s tremendous efforts. However, as VinFast positions itself as a global manufacturer, Vietnam is likely just the starting point, with expansion into other markets on the horizon.
Largest taxi company in Nghệ An cancels car purchase contract with Toyota to switch to VinFast
Mr. Ho Chuong, CEO of Son Nam International Transport Co., has recently disclosed that he had previously signed contracts to purchase gasoline-powered vehicles from a Japanese car manufacturer. However, he has since diversified his investment portfolio by also venturing into VinFast electric vehicles, in order to embrace long-term and sustainable development.
VinFast’s journey to realizing the dream of Vietnamese businesses conquering the international market
After a stunning victory in the “Event of the Year” category at the WeChoice Awards 2023, VinFast’s pioneering event listed on the US stock exchange has inspired many Vietnamese businesses and young people.
The European automotive industry struggles to defend against a formidable rival from over 7000km away.
The automotive industry just welcomed new car models from a formidable competitor.
VinFast’s Success Leads the Way for Vietnamese Businesses to Conquer the Global Market
VinFast’s listing on the US stock exchange not only provides an opportunity for the company, but also inspires a strong sense of empowerment among young Vietnamese entrepreneurs. It affirms that dreams and ambitious visions are not bound by geographical limitations.
