“VinFast Seeks Local Suppliers to Achieve 80% Localization: A Plea to Empower Indigenous Businesses”

Hot-stamped steel, also known as hot press forming (HPF), is a pivotal material technology in modern automobile manufacturing, especially with the ever-increasing demands for safety, lightweight designs, and fuel efficiency.

This type of steel is treated at high temperatures of around 900°C, then pressed into a mold and rapidly cooled to form a martensitic structure, resulting in strength three to four times that of conventional steel. The tensile strength of hot-stamped steel can reach up to 1,500 MPa, while cold-rolled or traditionally hot-rolled steel typically ranges from 400 to 800 MPa.

VinFast, a prominent automotive manufacturer, has expressed its strong desire to localize the production of hot-stamped steel to meet their goal of 80% localization by 2026. However, they are yet to find a suitable Vietnamese partner. “We’ve searched across Vietnam but haven’t found a partner capable of producing hot-stamped steel that meets our standards,” revealed Ms. Thai Thi Thanh Hai, Vice President of Vingroup and Vice General Director of VinFast Global, at a recent event.

What makes hot-stamped steel such a challenging product for Vietnam to localize at this point?

Producing qualified hot-stamped steel involves heating steel sheets to 900°C, pressing them into a mold, and rapidly cooling them (quenching). During this process, the steel’s structure transforms, enhancing its mechanical strength.

The requirement for heat-resistant molds, precise temperature control, and rapid cooling rates mean that only companies with significant technological investments can produce hot-stamped steel.

VinFast, along with many other automotive manufacturers, sources hot-stamped steel from suppliers like Thyssenkrupp and Posco. VinFast’s VF 9 and VF 8 models are said to have bodies comprising “29% hot-stamped steel,” surpassing many Japanese and Korean vehicles in the same price range. This explains why VinFast vehicles are renowned for their sturdy and safe construction in collisions.

Hot-stamped steel is commonly used in critical vehicle components such as pillars A and B, door frames, chassis, and front/rear impact-absorbing zones. Incorporating this steel not only reduces vehicle weight by several dozen to a hundred kilograms but also enhances fuel efficiency and supports electric vehicles in extending their range.

Moreover, organizations like Euro NCAP, ASEAN NCAP, and IIHS are continually raising the bar for crash test standards. To achieve high safety ratings without adding weight to the vehicle, manufacturers must strategically incorporate hot-stamped steel in various locations.

While hot-stamped steel offers superior performance, the initial investment costs for the hot-stamping technology are substantial, including expenses for molds, furnaces, and cooling systems. Consequently, mass-market vehicles are cautious about employing hot-stamped steel throughout their bodies, primarily due to cost constraints.

However, with the current trends toward electrification and enhanced safety, hot-stamped steel will likely become more prevalent, even in affordable B- and C-segment vehicles.