Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnam’s first homegrown car set to be delivered

Vietnam’s first homegrown car set to be delivered

Content image - Phnom Penh Post
Workers operate the car assembly line at the new automobile plant of VinFast, Vietnam’s first homegrown car manufacturer in Hai Phong on Friday. MANAN VATSYAYANA/AFP

Vietnam’s first homegrown car set to be delivered

VIETNAM’S homegrown carmaker VinFast is set to deliver its first cars on Monday, the company said on Friday as it showcased a factory in one of Asia’s fastest growing economies.

VinFast said it will supply a domestic market that is rapidly expanding thanks to a mushrooming middle class with a growing appetite for cars – though it will face stiff competition from well-established players like Toyota and Ford.

The carmaker is a subsidiary of Vietnam’s largest private conglomerate, Vingroup, which is owned by the country’s richest man, a press-shy billionaire who started his career selling dried noodles in Ukraine.

It is seeking to tap into national pride with vehicles that include sedan and SUV models, along with e-scooters and even electric buses.

“In less than 72 hours, the first Vietnamese branded cars will officially be driven on the streets of Vietnam,” said Vingroup director general Nguyen Viet Quang.

Quang – speaking at the sprawling factory in Haiphong where rows of red, white and grey cars were being assembled – said the company has received orders for 10,000 cars and “tens of thousands” of e-scooters.

Vietnamese Prime Minister Nguyen Xuan Phuc said he hoped the vehicles would help Vietnam become a household name – alongside auto-making heavyweights Japan and Germany.

“Vietnamese are able to do what the world can,” Phuc said.

Vietnam’s fast-growing economy has largely been buoyed by cheaply manufactured goods like sneakers, T-shirts and computer processors.

GDP growth hit 7.1 per cent last year, and the World Bank says annual growth is expected to reach 6.6 per cent later this year.

The country has said it hopes to move into value-added and high-tech manufacturing like more developed neighbours like South Korea and Japan.

Vietnam currently assembles foreign-branded cars for a growing domestic market – auto sales are up 22 per cent year-on-year over the past five months, according to Vietnam Automobile Manufacturers’ Association.

The cradle-to-grave Vingroup empire includes housing, resorts, farms, schools, hospitals, shopping malls and smartphones.

CEO Pham Nhat Vuong is worth an estimated $7.7 billion, according to Forbes.

MOST VIEWED

  • Vietnam: Tougher sentences for child abusers

    Several National Assembly (NA) deputies in Vietnam are calling for tougher penalties to be handed down to child abusers. They hope stricter punishments will act as a strong deterrent to prevent offenders committing further offences in the future. Extreme measures such as chemical castration were

  • Central bank to shun small US banknotes

    The National Bank of Cambodia (NBC) is considering not accepting smaller denominated US dollar banknotes – $1, $2 and $5 – from banks and microfinance institutions (MFIs) which it said are flooding its stockpile as the demand for those notes is low. While some banking insiders welcomed the move as

  • PM lauded in Covid-19 fight

    World Health Organisation (WHO) director-general Tedros Adhanom Ghebreyesus sent a letter to Prime Minister Hun Sen thanking him for following the WHO’s guidance and commending Cambodia’s efforts in the fight against Covid-19. In his letter made public by the Ministry of Foreign Affairs

  • Workers return, hope for salaries

    More than 600 factory workers in the capital’s Chaom Chao commune in Por Sen Chey district returned to work after the factory’s owner promised to pay their salaries in instalments until the middle of next month. On Tuesday and Wednesday, more than 600 workers gathered

  • Women detained for forcing kids to beg

    Two women were sent to Phnom Penh Municipal Court on Thursday for forcing six children to beg for money for several months at the Chhouk Meas market in Krang Thnong commune in the capital’s Sen Sok district. Phnom Penh Department of Anti-human Trafficking and

  • Vietnamese tents baffle border guards

    Kandal and Takeo provincial authorities bordering Vietnam have expressed concern after witnessing irregularities by the Vietnamese authorities, including the deployment of soldiers to erect 114 camps just 30m from the border. Takeo provincial governor Ouch Phea told The Post on Thursday that Vietnamese soldiers had erected 83