Vietnamese producer VinFast begins production
Real-estate conglomerate Vingroup JSC’s auto unit VinFast marked the rollout of its first vehicles from its assembly line on Friday, embodying the aspirations of the fast-developing country’s government to build a modern manufacturing sector.
«This makes a great contribution to the national economy. It affirms that the private sector is a very important driver of the economy. I want VinFast to go to the regional and global markets» Vietnamese Prime Minister Nguyen Xuan Phuc said during a ceremony at VinFast’s complex of six automated factories constructed in 21 months in the northern port city of Haiphong.
VinFast, which will start delivering cars to customers Monday, wants to be the first Vietnamese company to succeed at challenging foreign competitors such as Toyota, Ford and Honda in one of the world’s fastest-growing economies. Xuan Kien Automobile, known as Vinaxuki, failed to win over brand-conscious Vietnamese with its local car models before folding in 2015.
The first VinFast rollout, a hatchback named Fadil, is initially priced at 394.5 million dong ($16,900)
The company will also produce a sedan, sport utility vehicle and electric motorbikes.
VinFast plans to make 250,000 vehicles during a first stage of operations, with projected production increasing to 500,000 vehicles a year by 2025.
Last year, the company said it expects to begin exports in mid-2020.