Vingroup Corporation held a groundbreaking ceremony on September 2, at its VINFAST Automobile Production Complex located in a 335-hectare site in Dinh Vu Cat Hai Economic Zone in Hai Phong, Vietnam.
Phase 1 of the construction project include facilities to build a 5-seater sedan, a 7-seater sport utility vehicle (SUV) and an electric motorcycle, with a total capacity of 100,000 to 200,000 units per year. The ambitious schedule calls for the launch of its first product, an electric motorcycle, in a year’s time. Key components, such as motors and main structural systems, will be purchased from leading European and American designers.
The company said VINFAST will apply the world’s most modern technology to produce these products, ensuring that these products comply with Euro 5 and Euro 6 vehicle emission standards; At the same time, the plant will utilise green energy in its production process.
The goal of VINFAST is to become the leading automobile manufacturer in Southeast Asia, with a production capacity of 500,000 units per year by 2025. In support of this new strategy, VINFAST, which becomes Vingroup’s seventh core business, has signed a Memorandum of Understanding with Credit Suisse AG, one of the world’s leading financial groups, under which Credit Suisse will arrange a loan of up to USD800 million for VINFAST.
The six other core areas of Vingroup include: real estate, tourism-entertainment; retail; medical; education; and, agriculture.
VINFAST has assembled a team of world-leading experts, experienced in the field of automobile production involved in research and production. VINFAST will also support and cooperate with Vietnamese manufacturers to jointly produce and develop components, gradually achieving a localisation rate of 60%.
“The launch of VINFAST expresses the aspiration to build a world-class brand in Vietnam,” said Nguyen Viet Quang, group vice president. “Vingroup is also eager to contribute to promoting the development of heavy industry and manufacture in Vietnam, contributing to the industrialisation and modernisation of the country,” he added.
“The huge scale of investment represents Vingroup’s commitment to the rapidly growing automotive sector in Vietnam,” said Lito Camacho, executive director and vice president, Asia Pacific, Credit Suisse. “We are delighted to continue to build strong working relationships with Vingroup and assist the Group in its development of the automobile industry in Vietnam.”
Vietnam’s Prime Minister Nguyen Xuan Phuc, who was the guest of honor during the groundbreaking, praised the speed in executing the project.
“This is a milestone, and the start of this project is a respectable patriotic gesture,” he said.