Pham Nat Vuong is a name synonymous with Vietnam’s ambitious leap into the electric vehicle (EV) industry. As the founder of VinFast, Vuong has spearheaded a transformative journey that seeks to establish Vietnam as a significant player in the global automotive market. This journey is not just a tale of entrepreneurial success but also a testament to the immense challenges of building a new industry from the ground up in a country like Vietnam.

The visionary behind VinFast

Born in 1968 in Hanoi during the height of the Vietnam War, Vuong grew up in a desperately poor family. Blessed with inherent mathematical ability and nurtured by loving parents, he was able to surf a wave with fellow Vietnamese students who were offered the chance to study in the Soviet Bloc. His mathematical talent provided an avenue to study at a geological institute in Moscow in the late 1980s. Following graduation, Vuong moved to Kharkiv in Ukraine, where he at first started a Vietnamese restaurant, soon investing in a production line to produce rice noodles at scale. He built Mivina into Ukraine’s most popular noodle brand. After selling Mivina to Nestle for $150 million, Vuong returned to Vietnam, where he built a conglomerate. In 2012, Vuong merged two entities, VinPearl, his resort business, and VinCom, his real estate business, creating VinGroup. By 2016, he was Vietnam’s first billionaire, with visions of building automobiles in his home country.

Challenges in establishing an EV industry in Vietnam

The establishment of VinFast was an audacious goal for Vuong, given that Vietnam had a very limited market of customers for cars and zero homegrown producers. The challenges were immense. Vietnam’s agricultural economy, devastated by what the Vietnamese call the American War from 1945 to 1975, was still recovering. In 1986, the sixth national congress of the Communist Party of Vietnam passed a set of socialist-oriented market economic reforms known as Doi Moi, which encouraged private ownership of enterprises. Despite rapid economic growth, the industrial infrastructure needed to support a domestic automotive industry was nearly non-existent.

Vuong, however, was not deterred. In a remarkable feat, he oversaw the construction of an 827-acre manufacturing complex on reclaimed seabed in Haiphong, completed in just twenty-one months. This facility is among the world’s largest, most vertically integrated automobile production facilities, showcasing Vuong’s ability to mobilize resources and talent on an unprecedented scale.

The role of the Haiphong plant

The Haiphong facility is not just a manufacturing plant; it is one of the world’s largest and most vertically integrated automobile production facilities. This integration allows VinFast to control nearly every aspect of its vehicle production process in-house. The plant is responsible for the initial stages of EV manufacturing, including the assembly of vehicles, production of key components, and possibly battery production. The vertical integration at this scale is particularly significant because it allows VinFast to confront the challenge of building a new industry in a country with minimal existing infrastructure for automobile production.

Confronting the lack of infrastructure was a monumental challenge. Vietnam, with its historical focus on agriculture and limited industrial capacity, was not known for manufacturing, much less for producing advanced electric vehicles. To overcome these obstacles, Vuong and his team imported knowledge and expertise from around the world. They recruited top talent from global automotive giants such as General Motors, BMW, and Bosch, and leveraged this expertise to build the Haiphong plant into a robot-filled, state-of-the-art facility capable of producing up to 250,000 vehicles per year. This was a crucial step in transforming VinFast from a bold idea into a reality and positioned the company to compete on a global scale.

Strategic moves and risks

VinFast’s journey is characterized by strategic moves that reflect Vuong’s willingness to take significant risks. One of the boldest decisions was VinFast’s pivot to focus exclusively on electric vehicles, announced in August 2022. This move, which involved phasing out the production of internal combustion engine vehicles, allowed VinFast to position itself as a leader in the EV sector. However, this strategy also carried risks, as it deprived the company of a steady revenue stream from traditional vehicle sales at a critical time in its development.

The construction of the Haiphong plant and VinFast’s pivot to EVs were supported by strategic partnerships and substantial investments. In March 2022, VinFast announced it had secured $4 billion in funding and $1.2 billion in incentives from the state of North Carolina to build a factory complex to manufacture batteries and vehicles. These moves were instrumental in establishing VinFast’s credibility as a serious contender in the global automotive market.

The global ambitions of VinFast

VinFast’s ambitions extend far beyond Vietnam. With plans to enter the U.S., European, and other international markets, Vuong’s vision is to make VinFast a global leader in the EV industry. The decision to build a manufacturing plant in North Carolina underscores this ambition. Vuong’s strategy is to compete in the most challenging markets in the world, believing that success in these arenas will validate VinFast’s position as a global automotive powerhouse.

A visionary’s gamble on the future

Pham Nat Vuong’s journey from a poor family in Hanoi to the helm of Vietnam’s most ambitious industrial project is nothing short of extraordinary. Through VinFast, he is not only transforming Vietnam’s industrial landscape but also positioning the country as a significant player in the global EV industry. The challenges are immense, but Vuong’s vision and determination suggest that VinFast may indeed emerge as a key player in the global shift toward sustainable transportation.

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This article was adapted from the author’s new book, The Electric Vehicle Revolution: Five Visionaries Leading the Charge.