“VinFast Initiates a ‘Major League Play’, Propelling Vietnamese Supporting Industries to New Heights”

“Grateful to VinFast for Presenting Us With This Opportunity”

The magnitude of the “Conference on Enhancing Localization and Developing the Supplier System,” hosted by VinFast on June 9, was evident not only in its rare scale—attracting 1,000 leading enterprises in industrial and auxiliary production—but also in the groundbreaking information unveiled by VinFast.

Specifically, Ms. Thai Thi Thanh Hai, Vice President of Vingroup and Deputy General Director of VinFast Global, shared the company’s strategic vision, which includes a localization target of 80% by 2026. Regarding output, the automaker aims for more than 500,000 vehicles by 2027 and a million cars per year by 2030.

To accomplish these goals and extend development opportunities to Vietnamese businesses, Ms. Hai announced a series of unprecedented supportive policies: a 50% land rental fee discount for the first three years and a 20% discount for the subsequent five years for partners establishing factories at the production complexes in Hai Phong and Ha Tinh. The company also pledges to guarantee output according to agreed-upon plans, while connecting Vietnamese enterprises with foreign partners for technology transfer and enhanced international competitiveness.

VinFast’s development plans and series of preferential policies received strong support from the attending businesses. “I have strong faith in VinFast, and we are not afraid to invest,” asserted Ms. Dang Thi Thu Phuong, Executive Director of Precision Engineering Joint Stock Company, following the information disclosed by VinFast’s leaders.

Specifically, Ms. Phuong’s company is investing in two new production lines with a total capital of up to VND 80 billion. For her, this is a significant opportunity, especially considering the seven years of growth since partnering with VinFast. From a household appliance component manufacturer, the enterprise can now produce auto parts at lower prices than imported ones. “We are grateful to VinFast for presenting us with this opportunity,” said the company leader.

Sharing the same confidence in VinFast, Mr. Ho Ngoc Toan, Deputy General Director of Automech Mechanical Equipment and Solutions Joint Stock Company, believes that VinFast’s goal of achieving an 80% localization rate by 2026 is definitely attainable. According to him, VinFast’s journey of increasing localization from 40% to 60% has been rapid. Hence, reaching 80% in a short period is feasible, especially with the attractive policies VinFast has announced, which will attract more businesses to join VinFast’s supply chain, thus accelerating the process.

Leading the Way for Vietnam’s Supporting Industries

From her perspective, Dr. Truong Thi Chi Binh, Vice President and General Secretary of the Vietnam Supporting Industries Association (VASI), recognizes the opportunities for both VinFast and enterprises within its supply chain. “There is still untapped potential in Vietnam’s automobile market. Currently, we have only 22 cars per 1,000 people, whereas, with Vietnam’s GDP, the ratio should be 200 cars per 1,000 people,” she commented on VinFast’s prospect of reaching a million cars in output by 2030.

Regarding the incentives for the supply chain, Dr. Binh pointed out that VinFast has always been open and supportive of enterprises in recent years, earning high praise from the community. Therefore, with VinFast’s upcoming output and clear localization strategy, this presents an opportunity for businesses in the supporting industries.

Examining VinFast’s supportive strategy for supplier enterprises from a macroeconomic perspective, economist Pham Chi Lan asserted that this is a tremendous opportunity for Vietnam’s automobile ancillary industries, with VinFast as the leader. She emphasized the term “leader” because, in reality, Vietnam has had policies on developing supporting industries for decades but has accomplished very little.

Regarding the automobile industry, she pointed out that when foreign automakers like Toyota, Mitsubishi, and Ford entered Vietnam, they utilized ancillary industries “according to their division of labor.” For instance, Japanese companies used ancillary industries in Thailand rather than Vietnam. Therefore, she affirmed that Vietnam could not develop its automobile ancillary industries while relying on foreign companies to lead the way.

“VinFast emerges as the leader with a large enough scale and the capacity to guarantee output. Ancillary enterprises that can meet VinFast’s high standards and international competitiveness commitments will also gain self-competitive advantages,” she said.

Hence, she envisions a significant opportunity for Vietnam to advance through its internal strength in the context of changing global trade. “I believe this is a great opportunity. I am confident that the supporting industries, with the support of VinFast and the entire society, will rise together,” economist Pham Chi Lan affirmed.