Invested by VinFast manufacturing and trade Ltd company, an affiliate of real estate developer Vingroup, the complex is expected to roll out a five-seater sedan model, a seven-seater sport utility vehicle model, and electric motorbike meeting European standards during the first stage. The complex has total investment capital of US$3.5 billion.

The designed capacity is estimated at 100,000 – 200,000 vehicles per year. Its first product in the next 12 month will be electric motorbike model while automobiles will be made in the next 24 months.

Speaking at the event, Phuc said the automobile industry had played an important role in the country’s development. The project could generate 20,000 jobs and contribute VND20 trillion (US$891.15 million) to the province’s State budget.

The entire production process is located in 335ha at Hai Phong VinFast Factory, which has five main workshops, including the pressing workshop, an auto body workshop, a painting workshop, an engine factory and an assembly workshop.

The designs of key components such as motors and main structural systems will be purchased from leading European and American designers. The car designs will be created by the famous Italian studio which has made the creation of luxury design for Alfa Romeo, Aston Martin, Audi, Bentley, BMW, Cadillac, Ferrari, Jaguar, Lamborghini, Mercedes-Benz, Porsche and Rolls-Royce.

VinFast is linked to the abbreviation of words Việt Nam, style, safety, innovation and pioneer. The goal of VinFast is to become the leading automobile manufacturer in South East Asia, having a designed capacity of 500,000 units per year by 2025. Its main products are automobile engine, internal combustion engine, automobile electric engine and environment-friendly electric motor.

VinFast will apply the world's most modern technology to production, ensuring strict Euro 5.0 and Euro 6.0 emission standards. At the same time, it will maximise the use of green energy in the production process at the factory. The company is also actively investing in used batteries to protect the environment.

With the prestige of Vingroup, VinFast has gathered a team of world-leading and experienced experts in the field of automobile manufacturing to take part in the company’s research and production management. VinFast will also support and cooperate with Vietnamese manufacturers to jointly produce and develop auto parts, achieve a localisation rate of 60 per cent, acquire expertise in technology and export to other countries in the region.

Nguyen Viet Quang, Group Vice President, said the launch of VinFast expresses the group’s aspiration to build a world-class brand and affirms the ability to master the modern technology of Viet Nam.

"Through the field of automobile and motorcycles manufacturing — one of the leading industries affecting many other industries — Vingroup is also eager to contribute to promoting the development of heavy industry and manufacturing in Viet Nam, as well as contribute to realise the industrialisation and modernisation process of the country," said Quang.

In support of this new strategy, VinFast has signed a Memorandum of Understanding (MoU) with Credit Suisse AG, one of the world's leading financial groups, under which Credit Suisse will arrange a loan of up to US$800 million for VinFast.

Speaking about the Vingroup's automobiles and motorbikes development strategy, Lito Camacho, Executive Director and Vice-Chair for Asia Pacific at Credit Suisse Group AG, said the huge scale of investment represents Vingroup's commitment to the rapidly growing automotive sector in Việt Nam, as well as to building a modern manufacturing plant, which is expected to be the largest in the country, achieving international standards.

“Việt Nam is an important market for Credit Suisse, and we are committed to delivering value to our clients by leveraging the strength of our integrated investment banking and financing platform. We are excited to further build on our strong partnership with Vingroup and to support their ambitions to expand Việt Nam’s automotive manufacturing industry,” said Lito.

The launch of VinFast will not only open the opportunity to own cars with reasonable prices, especially environment-friendly ones, and meet the increasing demand of domestic consumers, but also officially mark Viet Nam on the world car production map with its first brand name car. This is also the starting step for joining the heavy industry by Vingroup, which will complement the group's six key focus areas such as real estate, tourism–entertainment, retail, medical care, education and agriculture. — VNS