World Motor Show 2022: Vietnamese VinFast takes up residence in Paris, Frankfurt and Amsterdam

The first post-Covid motor show, the Mondial de l’auto currently being held in Paris has nothing to do with previous editions. Exit the abundance of halls, we will be satisfied with two and a half (3, 4 and 6). Identical situation with a very sparse list of exhibitors, where the Germans and other beautiful English and Italians are missing.

This is what makes the business of the Chinese manufacturers BYD and Great Wall Motors (Wey and Ora), landed in force with XXL stands on which different models are displayed. But the competition is not only Chinese. Indeed, another Asian manufacturer has decided to play spoilsport and demonstrate to the automotive sector, including the Chinese, that it had to be reckoned with. This is VinFast, a Vietnamese manufacturer, owned by Vingroup, a private conglomerate belonging to the multi-billionaire Pham Nhat Vuong.

This is not the first time that VinFast parades in Paris. We remember that on the 2018 edition of the Parisian World Cup, the brand made a remarkable entrance by offering the services of footballer David Beckham and Miss Vietnam. Not sure that visitors noticed the two vehicles on its stand: a five-seater sedan (Lux A2.0) and a seven-seater SUV (Lux AS2.0). The operation will be repeated in 2019 at the Frankfurt Motor Show.

In November 2021, the brand was officially launched at the Los Angeles auto show, Auto Show, followed by a remarkable presence in January 2022, at the CES (Consumer Electronics Show) in Las Vegas. All that was missing was a major global event to establish its notoriety, namely the Mondial de Paris.

VinFast spared no expense with a huge stand featuring four electric models, the VF6, VF7, VF8 and VF9, the spearheads of the offensive aimed at conquering the European market without complex.

Since it is a question of Europe, the Vietnamese manufacturer is taking advantage of the Paris Motor Show to detail its strategy with the establishment of three headquarters in France (Paris), Germany (Frankfurt) and the Netherlands (Amsterdam).

This tripartite choice is not a fad since these three markets – apart from Norway – are the most active in the electric vehicle segment. Furthermore, it is about “provide an optimal level of service to customers, guided by a thorough understanding of country-specific requirements”. Concretely, the brand will develop its “extensive direct-to-consumer network and deploy mobile service to ensure premium customer experience”.

On the ground, this will mean the opening of a first VinFast store in Cologne (Germany), followed before the end of 2022 by Paris, Nice, Amsterdam, Berlin, Munich, Frankfurt and Hamburg. The start of 2023 will be off to a flying start with other points of sale in Oberhausen, Marseille, Rennes, Montpellier, Metz, The Hague and Rotterdam.

To date, despite the lack of available vehicles, a mobile service has been launched in Germany, which will be extended “to the whole of Europe in the first quarter of 2023”. VinFast wants to hire more than 200 technicians in the next 12 months.

There remains an unknown concerning the VinFast models coming out of the production plants in Hai Phong, Vietnam. Will a factory see the light of day in Europe? The question is legitimate after the call from Emmanuel Macron who, from the first day of the show, called for European solidarity in the purchase of electric vehicles. Clearly, favor European production, like the American and Chinese electricity markets. Nationality doesn’t matter, as long as it’s produced in Europe.

Although the Old Continent is “an important market for VinFast”the Vietnamese manufacturer “continue to seek a suitable location for a European manufacturing plant”. In January 2022, Le Thi Thu Thuy, Vice President of Vingroup and CEO of VinFast, said: “The era of shipping cars around the world is over, especially since Covid-19 […] You have to have the factory close to the market to win over your customers.” At the time, the German newspaper Frankfurter Allgemeine Zeitung speculated about the possible takeover of the Opel plant in Eisenach. But since the resignation of the German Michael Lohscheller, ex-CEO of Opel and VinFast thereafter, it is radio silence.

On the other hand, the opening of an electric car production plant in the United States during the second half of 2024 has been recorded, followed by a project for a battery plant (source The Detroit Office).