Vietnam’s VinFast showcases a range of EVs reportedly destined for America

You may not have heard of Vietnamese automaker VinFast. But the company wants to change that. And while many startups have announced plans to enter the US auto market in recent years, none have gone as fast as this one.

VinFast chose this week’s CES consumer electronics show in Las Vegas to make important announcements so fast they made journalists dizzy. Among them the company:

• Shown five new electric vehicles (EVs)
• Plans Announced to Stop Production of Gasoline-Powered Cars Before Most Americans Know They Made Them
• A new reservation program launched – customers who spend $200 to reserve a car will receive thousands of dollars in credit towards their final purchase, an NFT and a free stay at a beach resort in Vietnam. Read it again. It won’t make more sense the second time around.

Let’s backup

So… what is VinFast?

VinFast, founded in 2017, is the first Vietnamese car brand to market cars outside the country’s borders. It is a subsidiary of VinGroup, Vietnam’s largest conglomerate, which does business in areas as diverse as real estate and healthcare. VinFast was launched with just two products: a mid-sized sedan and a mid-sized SUV, both derived from previous-generation BMW vehicles. But the company is planning aggressive growth. It now has offices on five continents, with plans to sell vehicles in each.

Going fully electric

The company announced plans this week to stop producing combustion engine vehicles by the end of 2022. Instead, it will “concentrate research and development efforts on all-electric powertrains” for future vehicles.

Of course, most Americans were not aware of VinFast when it produced gasoline cars. So Americans will likely experience the company as a pure EV producer to begin with.

A full lineup

VinFast used CES to show off five vehicles. Their exteriors are all written by the famous Italian design firm Pininfarina, and the Vietnamese company will sell them with a unique ownership strategy.

Buyers buy the car, but lease the battery. That system, VinFast says, will allow the company to replace any battery that drops below 70% of its capacity over time. The company has not disclosed what leasing will cost, except that “the total monthly cost of driving VinFast EVs is approximately equal to the cost of gasoline.”

Since one of the main arguments for buying an EV is that electricity costs less than gasoline, that strategy may require some adjustment.

VinFast has said the battery leasing program would have two tiers: one that allows for a maximum of 300 miles per month and a second with no mileage limit.

The vehicles include:

• The VF5, a subcompact SUV, price unknown
• The VF6, a compact SUV, price unknown
• The VF7, a 2-row SUV that splits the difference between compact and mid-sized, price unknown
• The VF8, a mid-sized 2-row SUV starting at $41,000, excluding the monthly battery lease fee
• The VF9, a 3-row mid-sized SUV, starts at $56,000, excluding the monthly battery lease fee

A unique reservation program

Buyers can pre-purchase the vehicles today for $200. Reservation holders earn the right to order the vehicles when they’re ready, plus a unique set of benefits. They include a “voucher” valued between $3,000 and $5,000 for the final purchase price, a non-replaceable token (NFT) based on the vehicle’s ID, and…ok…we’ll start quoting now :

“A complimentary resort tour package (excluding airfare) of a 3 bedroom beach villa that sleeps four in seven days at one or more VinPearl’s hotels in Vietnam, including airport pick-up, accommodation, unlimited free access to VAP, Safari or Golf. ”

Oh, and a charger. You get a free portable charger with it. Presumably for the car, but the press release doesn’t say for sure.

Is this real?

It’s a lot to digest. We note that just ten years ago, startups in the automotive industry were almost unheard of. In recent years, Tesla has grown from a dubious proposition to the world’s most valuable automaker (at least in terms of market capitalization). Startups Lucid Motors and Rivian have successfully delivered cars to customers.

Even Sony is stepping in.

As the project of a major conglomerate, VinFast has more resources than anyone else at launch. But it’s trying out a lot of new ideas at once, with almost no infrastructure in the US to support them. It is a mystery whether this will work.

The company does not yet have US dealers or service locations and has not explained how it will sell or service its cars.

“All early reservations can be refunded, donated, or transferred from April 6, 2022,” VinFast says.