By 2026, Vinfast's auto localization rate will reach 84%.

Currently, VinFast electric cars have a localization rate of more than 60%, and the roadmap will increase to 84% by 2026 through the domestic production and supply of additional details such as: car seats, electrical wires, car lights, car rims, brake - steering systems, interior and exterior components, mirrors, etc.

The context of the supporting industry in Vietnam and the role of VinFast

At the seminar on VinFast automobile localization held in Hai Phong this morning (December 12), Mr. Le Ngoc Anh - Director of VinFast Hai Phong Factory - said that the supporting industry in Vietnam plays an important role in promoting the development of the economy, especially the manufacturing industry, including the automobile industry. However, this sector is still facing many major challenges.

The localization rate of Vinfast electric cars is currently over 60% and will increase to 84% by 2026.

The first challenge is small scale, most of the supporting enterprises in Vietnam are small and medium enterprises, lacking investment in technology and production capacity.

Second is low competitiveness. Products of domestic supporting enterprises often have difficulty meeting quality and price requirements compared to international suppliers.

Third is the lack of connection in the supply chain, domestic enterprises still lack close connection with large enterprises and global supply chains.

According to Mr. Le Ngoc Anh, in the face of this situation, right from the beginning of entering the automobile manufacturing industry, VinFast has set a clear goal of not only producing cars but also promoting the domestic supporting industry to develop more strongly, thereby increasing the localization rate and contributing to the sustainable economic development of the country.

Vinfast is a car manufacturer, not an assembler.

With the goal of becoming an automobile manufacturing factory, right from its inception, VinFast has determined not to follow the path of conventional assembly but to become a real automobile manufacturer. Only then can it strongly promote the development of domestic supporting enterprises, while reducing dependence on imported components.

At the world's leading modern factory complex, VinFast dedicates more than 30% of the complex's area to developing supporting industrial zones, creating conditions for businesses to directly participate in the supply chain.

In particular, VinFast has proactively produced important components such as the body, engine, etc. thanks to factories with a level of automation of over 90%, ensuring quality and production scale meeting international standards. Currently, in the VinFast factory, there are workshops: stamping, welding, assembly, engine, etc., all installed on the most modern and advanced production lines in the world from Germany, Austria, Korea, etc.

“Currently, the localization rate of VinFast electric vehicles has reached more than 60%, including important details such as the body, engine, roof, and shock absorbers. This is a remarkable achievement in the context of Vietnam's young supporting industry,” Mr. Ngoc Anh emphasized.

VinFast's automobile production line at the Vinfast Hai Phong factory is 90% automated.

Localization rate from over 60% to 84% by 2026

Currently, VinFast has built a clear roadmap to increase the localization rate through the domestic production and supply of additional parts such as: car seats, electrical wires, car lights, car rims, brake - steering systems, interior and exterior components, mirrors, etc. The localization rate will reach 84% by 2026 when VinFast produces electric batteries, one of the most valuable components in electric vehicles.

To achieve these goals, VinFast will cooperate with partners with a presence in Vietnam. Leverage the existing network of supporting businesses to optimize domestic supply, reducing dependence on imports.

With domestic partners: Cooperate with Vietnamese enterprises that have experience in manufacturing spare parts, components or supporting fields such as logistics, assembly, processing, etc. to reduce transportation costs, increase supply speed, and promote the development of domestic enterprises.

With FDI partners in Vietnam: Cooperate with existing FDI enterprises in Vietnam operating in the supporting industry or component manufacturing sector, helping to increase access to high technology and modern management skills.

Cooperate in technology transfer, bringing advanced technology to Vietnam, thereby enhancing production capacity and improving the quality of domestic products. VinFast will work with companies with expertise in designing and manufacturing complex components, requiring world-leading intelligence and technology to cooperate in technology transfer to VinFast's current partner companies in Vietnam. At the same time, develop internal capacity by training Vietnamese engineers and workers to operate technology effectively and creatively.

This activity will help increase proactivity in the supply chain, reduce import costs, and gradually build a sustainable production ecosystem.

VinFast will create a favorable environment to attract capital and experience from both domestic and foreign sources to build a strong domestic supply chain. Specifically, we will call for new FDI investment, creating conditions for foreign investors to build factories and component manufacturing facilities in the VinFast factory complex. At the same time, we will encourage Vietnamese enterprises to invest in upgrading facilities and participating in VinFast's supply chain.

Right from its inception, Vinfast determined to become an automobile manufacturer, not an assembler.

Supporting businesses will benefit from cooperation with Vinfast

Within its scope, VinFast can bring favorable conditions for Vietnamese supporting enterprises to participate in the supply chain.

– Connecting Vietnamese supporting businesses with global partners

VinFast invites foreign suppliers to Vietnam and encourages them to cooperate with Vietnamese enterprises to improve production capacity.

– Developing supply chain ecosystem

Support the establishment of manufacturing support centers in factory areas, where supporting businesses can quickly access necessary technical requirements and resources.

– Ensure stable output

Commit to long-term contracts with qualified supporting businesses, enabling them to expand and improve products.

Thus, VinFast's strategy to increase the localization rate is not only a business goal but also part of its mission to contribute to the development of Vietnam's supporting industry. With thorough investment, strategic goals and long-term commitment, VinFast not only gradually realizes the goal of achieving a localization rate of over 80% by 2026 but also makes an important contribution to building a strong and sustainable supporting industry ecosystem, creating a driving force to promote sustainable economic development for Vietnam in the new era - the era of national growth.

Vietnam.vn