VinFast, a subsidiary of Vietnam’s biggest private firm Vingroup, presented three models and their prices at its maiden show in Hanoi Tuesday afternoon. Its five-seat sedan Lux A2.0 and seven-seat SUV Lux SA 2.0, which had already been revealed to the public for the first time at the Paris Motor Show last month, cost VND800 million ($34,305) and VND1.136 billion ($48,709) respectively.
The smaller hatchback Fadil, presented for the very first time, costs VND336 million ($14,410).
These prices are exclusive of a 10 percent value added tax.
The company said it was announcing favorable prices for the “initial phase.” The original prices of the hatchback, the sedan and the SUV are VND423 million ($18,140), VND1.336 billion ($57,300) and VND1.818 billion ($78,000) respectively, it said.
VinFast surprised industry insiders by completing its first two units, the SUV and the Sedan, within one year.But VinFast did not say for how long the promotional prices will last or how many cars will be produced in the initial phase.
Its first two models are built on frames from BMW. Their components have been engineered by Canadian firm Magna International’s Magna Steyr, while design work was done by Italian design house Pininfarina.
The small hatchback, Fadil, meanwhile, was developed from the background of the Opel Karl Rocks model in the European market. Its structure is almost equivalent to the latest Chevrolet Spark generation.
Attending the exhibition, Prime Minister Nguyen Xuan Phuc said building strong Vietnamese brands means promoting patriotism, self-reliance and self-esteem and building a consumer culture in Vietnam.
“I hope more Vietnamese companies and entrepreneurs follow in the footsteps of VinFast to express an aspiration to dominate the domestic market and reach out to the international level.”
Vietnam’s population is around 93 million, larger than South Korea, but car consumption is only around 300,000 units a year, he said. Previously, Mike Dunne, an independent industry analyst who has spent more than three decades in Asia, said that he doubted VinFast cars would generate much demand in a country with an average income of $2,385 last year.
While there is little doubt the market would grow, it won’t happen fast enough to absorb VinFast’s production, planned at 250,000 vehicles annually, he added.
There are only 358 businesses in the auto industry in Vietnam compared to 2,500 in Thailand, according to the Ministry of Industry and Trade. Over 90 percent of auto parts are imported, it added.
