The launch of production plans for the first-ever made-in-Viet Nam cars has ignited hopes of a big boost for the domestic auto and auto parts industries. Viet Nam News reporter Mai Huong spoke with VinFast CEO James B. DeLuca about the company’s market vision.
What does your company’s advent portend for Viet Nam’s auto industry?
The domestic automobile market is growing strongly with a double-digit rate from now to 2020, reaching total sales of about 450,000 to 500,000 vehicles, with expectations to reach 800,000 to 900,000 vehicles by 2025. With VinFast’s entry, we believe that domestic automobile market will experience even stronger growth.
There are high hopes for the first ever made-in-Viet Nam car. Please tell us about VinFast’s production plans.
As planned, VinFast will launch its first Sedan and SUV in September 2019, targeting sales of 100,000 vehicles in the first year of operation and 500,000 units by 2025. With the guidelines of adapting to new and environmental friendly technologies, VinFast will apply the most modern technologies in the world to production, ensuring strict compliance with Euro 5 and Euro 6.0 emission standards; at the same time, we will maximize the use of green energy in our production process at the factory.
To accomplish these objectives, we have been building a team of highly experienced professionals in automobile manufacturing. In addition, VinFast has also cooperated with world leading corporations such as Boston Consulting Group, Bosch and Siemens in the project planning process, for equipment and component supply, and digital-based plant operations.
VinFast is also co-operating the German Chamber of Industry and Commerce in Viet Nam to set up a leading training center for mechatronics and industrial mechanics in the Southeast Asia, following the German Dual System (Learn & Practice) standards so as to prepare high-qualified engineers to work in the factory, ensure proficiency in operation of modern production lines as well as the ability to receive technology transfers from partners.
With careful and systematic preparation, I am very enthusiastic and look forward to launching the first two sedans and SUV models of VinFast.
Taking shape: The Sedan 02 model of Ital Design.
There is speculation that VinFast is targeting high-end cars. Why not the lower market segment to meet broader consumption demand?
By applying the most advanced technologies, VinFast will manufacture vehicles of international quality at reasonable prices for domestic market, ensuring that the majority of Vietnamese people can own a car.
It is also said that designs of key components will be purchased from leading European and American designers. What parts and components will Vietnamese companies produce for VinFast?
VinFast will always endeavor to build close relationships with domestic partners and suppliers, aiming at gradually achieving a localization rate of 60 per cent. Our plan is to prioritize the purchase of “made-in-Viet Nam” parts that meet technical criteria set by VinFast, and assist other domestic suppliers in further accelerating the production of automotive parts using the most modern technology. In particular, VinFast will reserve 30 per cent of the area for suppliers at the VinFast Automobile Manufacturing Complex in Dinh Vu-Cat Hai Economic Zone in Hai Phong City. We have held many meetings and discussions on this topic recently.
VinFast has said it aims to become the leading automobile manufacturer in Southeast Asia. What will make your products stand out from others?
Our products will be manufactured in compliance with international standards, from car body to motors, mechanical systems, technologies, and interior decoration. We have a clear direction to create a series of safe, high-quality, luxurious and premium cars that meet consumers’ tastes. All production stages will be directly operated by leading manufacturing experts and technologies. So, we believe that our products will compete well with other products of similar type in the world. — VNS