Vietnam's richest man plans electric vehicle factory in US, to target Tesla

Vietnam's largest conglomerate Vingroup is aiming the US electric vehicle market as it plans to set up facility for its VinFast electric cars in the country soon. Founded by Pham Nhat Vuong, Vietnam's richest man, the group aims to take on the likes of Tesla and General Motors on their own turf in a race to dominate the electric mobility market.

With an investment worth $2 billion, Pham Nhat Vuong wants VinFast to be Vietnam's answer to Elon Musk's Tesla. The group hopes its electric cars and battery leasing model will give it a foothold in the US.

VinFast, the number five car brand in Vietnam, aims to launch in North America and Europe by next year. The group's ambitions with its electric vehicles seems sky high as it will not only have to compete with the Tesla and GM in the US, but also Volkswagen, Toyota in Europe as well.

VinFast hopes its unique business strategy of vehicle leasing scheme will help it make its electric cars more affordable. The scheme aims to reduce the cost of the battery, one of the most expensive components of an electric car, in the final price. VinFast has already pitched an electric SUV that it claims to be one of the most luxurious cars currently on offer.

Currently VinFast has its manufacturing facility in Vietnam which has a capacity of producing 250,000 cars every year. Yet, the carmaker has not seen great success yet. It clocked annual sales of around 30,000 units in 2020 in Vietnam.

For the US, VinFast plans to sell cars online to reduce the cost of dealership network. It claims to have as many as 15,000 bookings so far for its VF e34 electric car in Vietnam.