“Vietnamese Support Businesses Grow 12-fold by Joining VinFast’s Supply Chain.”

Refined by Fire: The Miraculous Growth of Domestic Enterprises

At a recent seminar on localization in the automotive industry, Mr. Nguyen Van Hung, Chairman of CNC VINA, shared that his company has been accompanying VinFast since 2017 in various stages of motorcycle and automobile production. The past seven years have been memorable, as CNC VINA has learned a great deal from enterprises with miraculous developments such as VinFast.

Mr. Nguyen Van Hung, Chairman of CNC VINA

“VinFast has shared its motivation with us. CNC was small-scale back then, but we were exposed to a larger vision,” said the chairman of CNC VINA, the company that is now VinFast’s door shell stamping partner. From a production facility with assets worth approximately $30 million, CNC VINA has grown twelvefold in over seven years, reaching $500 million.

Meanwhile, sharing his company’s story, Mr. Tran Quoc Minh Dang, CEO of Y Chi Viet Co., Ltd., said that 2020 was a turning point for his company when they started supplying components to VinFast.

For Mr. Dang, this was also an opportunity to prove their mettle, as manufacturing components for VinFast automobiles demanded high capabilities and a stringent quality control process. Collaborating with VinFast also offered a chance for his company to establish itself in an industry that has long been considered incapable of producing even screws.

After the initial collaborations, Mr. Dang’s company now supplies over 80 components and more than 60 plastic frames for various VinFast models, from VF e34 to VF 9 and electric buses. “Thank you, VinFast, for your trust and for creating opportunities for us to demonstrate our capabilities and grow strongly in the automotive manufacturing chain,” said the leader of Y Chi Viet Co., Ltd.

Leading the Flock but Not Flying Solo

Listening to the enterprises’ sharing at the workshop, Associate Professor Dr. Bui Quang Tuan, Vice President of the Vietnam Economic Science Association and former Director of the Vietnam Economic Institute, expressed his delight at what the Vietnamese automaker has accomplished in seven years (from 2017 to the present). The proud achievements are not just about being number one in the Vietnamese market but also about how VinFast supports the growth of domestic enterprises.

“VinFast is the leader of the flock, but it leads rather than flies solo, helping Vietnam move faster and even skip some sequential stages,” said Associate Professor Dr. Bui Quang Tuan.

From VinFast’s model, the expert hopes that leaders like VinFast will “bring along many other leaders” so that the processing and manufacturing industry of VinFast, in particular, and Vietnam’s industry, in general, can advance swiftly into the fourth industrial revolution.

Many experts at the workshop concurred that the contributions of pioneering enterprises like VinFast will continue to grow as their localization rate continues to increase significantly. According to their plan, it will reach 84% by 2026, up from over 60% at present.

Considering VinFast’s localization strategy for the coming years, Professor Dr. Le Anh Tuan, Chairman of the Board of Hanoi University of Science and Technology, admitted that he was convinced by VinFast’s approach to mastering critical details of electric vehicles, such as battery cells, powertrains, air conditioning, and more. In addition to the main components, the Vietnamese automaker also aims to localize other parts like wheel rims, steering brakes, mirrors, etc. This holistic approach has resulted in a very high localization rate in VinFast electric vehicles, simultaneously creating a strategic advance for the entire automotive industry.

He referred to the fact that, previously, Vietnam had only about 300 enterprises in the automotive auxiliary sector, contributing marginally to the economy. With the increasing localization rate, the value brought to the economy by VinFast and its auxiliary enterprises is expected to surge in the coming years.

“VinFast symbolizes the resolute spirit and global aspirations of the Vietnamese people. With VinFast’s companionship, I believe we will create a vast ecosystem for Vietnamese automobiles, opening up a bright future for the automotive industry and Vietnam’s domestic production sector,” affirmed the expert.

Nhung Nguyen (Tuoitrethudo)