In recent years, the global electric vehicle market has developed rapidly, and governments around the world have successively introduced incentive policies to promote the upgrading of the new energy industry. Under this general trend, the potential of the Southeast Asian market is gradually being tapped, and Vietnam has become an emerging hotspot in the global new energy vehicle industry with its unique geographical advantages, industrial policies and labor cost advantages. As the only local electric vehicle brand in Vietnam, VinFast is on the rise and has received wide attention from international capital.
On March 4, 2025, Vietnamese corporate giant Vingroup announced the signing of a memorandum of understanding with Qatari private equity fund JTA Investment Qatar to plan to invest at least US$1 billion in VinFast. This news not only represents the recognition of the Vietnamese electric vehicle market by Middle Eastern capital, but also means that VinFast's pace towards the global market will be further accelerated.
The Rise and Present Situation of VinFast: The Growth of Vietnam's "Tesla".
VinFast was established in 2017 as a wholly owned subsidiary of Vingroup, focusing on the R&D, production and sales of electric vehicles. Although it has not been established for a long time, VinFast has developed rapidly and become a leader in Vietnam's new energy industry with its strong financial support and rapid market layout.
1. Global market layout
- In August 2023, VinFast was successfully listed on the NASDAQ in the United States, becoming the first automaker in Vietnam to be listed in the United States.
- In 2024, VinFast delivered 97,399 vehicles worldwide, exceeding its revised delivery forecast of 80,000 units.
- At present, VinFast's main market is concentrated in Vietnam, and it is actively expanding into North America, Europe, and Southeast Asia to build a global supply chain.
2. Product line and technological innovation
VinFast's current products cover multiple market segments, including:
- Electric SUVs (VF6, VF7, VF8, VF9) to meet the needs of different consumer groups;
- Electric motorcycles, electric buses, and electric bicycles to form a complete new energy transportation ecology;
- Intelligent driving and autonomous driving technology, continue to invest in research and development to improve the level of vehicle intelligence.
In addition, VinFast announced an investment in the construction of a second production plant in Vietnam to expand production capacity and respond to growing market demand. This move demonstrates VinFast's strong confidence in future market expansion.
Figure: Vingroup signed a memorandum of understanding with Qatar funds to invest at least $1 billion in VinFast
Qatar's Favour: Why VinFast?
Qatar Capital's investment in VinFast is not accidental, and there are multiple considerations behind it:
1. Huge potential of the new energy market in Southeast Asia
With the advancement of the global carbon neutrality process, Southeast Asian countries are also accelerating the transition to new energy. The data shows that:
- The Vietnamese government plans to achieve 100% electric vehicles by 2030, providing a series of subsidies and incentives;
- Southeast Asia's electric vehicle market is expected to reach $80 billion by 2030, with an average annual growth rate of more than 20%.
- As a local new energy brand in Vietnam, VinFast has a first-mover advantage with policy support.
2. Qatar's global investment footprint
Founded in 2010, JTA Investment Qatar focuses on investments in the energy, education, tourism, and emerging technology sectors. In the field of new energy, the fund has already deployed in many countries, and this investment in VinFast is another important strategic move in the electric vehicle industry.
Amir Ali Salemi, CEO of JTA Investment Qatar, said: "VinFast has the potential to go global, and we hope that this investment will help its technological innovation and international market expansion, as well as promote Qatar's deployment in the new energy sector. ”
This investment not only means that VinFast has received financial support, but also has the potential to help VinFast enter the Middle East market and further expand its global footprint.
VinFast's Globalization Challenges: How to Break Through
Despite the rapid development of VinFast, its globalization process still faces many challenges, which are mainly reflected in the following aspects:
1. Limited brand recognition
Compared with global electric vehicle giants such as Tesla and BYD, VinFast's brand awareness in the international market is still low, especially in North America and Europe.
2. Insufficient supply chain and after-sales service
At present, VinFast mainly relies on local production in Vietnam, and there are still shortcomings in global supply chain management, parts procurement, and after-sales network construction. Especially in the North American and European markets, the lack of a strong after-sales service system may affect consumers' purchasing decisions.
3. Fierce competition with Tesla and BYD
As competition in the global electric vehicle market intensifies, with companies such as Tesla, BYD, and Hyundai all dominating in terms of technology, supply chain, and brand influence, VinFast needs to find a competitive differentiation to avoid falling into a price war.
VinFast's game-breaker: How to win in the international market?
In the face of challenges, VinFast has adopted a series of proactive response strategies:
1. Accelerate the layout of overseas markets
- Establish sales network in the United States, Canada, Europe, Southeast Asia and other places;
- Plans to build a localized factory in North America to optimize the supply chain and improve market responsiveness.
2. Enhance product competitiveness
- Increase R&D investment to launch more competitive electric SUVs (e.g., VF8, VF9);
- Develop new technologies such as autonomous driving and intelligent cockpits to enhance product differentiation.
3. Strengthen international cooperation
- Improve manufacturing and delivery efficiency by partnering with global supply chains, technology companies;
- The investment in Qatar is expected to expand into the Middle East market and increase global market share.
Future Prospects: Can VinFast Become a Major Player in the Global New Energy Market?
The rise of VinFast has not only promoted the development of Vietnam's new energy industry, but also allowed the global market to see the potential of Southeast Asia in the new energy field. However, in order to truly become a core player in the global new energy market, VinFast still needs to make more efforts in brand building, technological breakthroughs and market development.
At the same time, the support of the Vietnamese government is crucial. If VinFast can continue to optimize policies, improve infrastructure, and attract more foreign investment, VinFast's future development prospects will be brighter.
Conclusion
VinFast's partnership with JTA Investment Qatar has provided it with strong financial support and international endorsement. This not only helps VinFast gain a firm foothold in the global market, but also brings a broader development space for the new energy vehicle industry in Southeast Asia. In the future, it will be interesting for the global market to see whether VinFast can challenge industry giants such as Tesla and BYD.
