We hear a ton about China’s car market, which has been the biggest in the world for nine consecutive years, selling 28.88 million cars in 2017 to the United States’ 17.24 million. We also hear a lot about India’s burgeoning market, which is growing by leaps and bounds. But another Asian market is making moves as well: Vietnam, which is getting into the car business with VinFast after a false start by a company named Xuan Kien Automobile.
VinFast rolled out its first vehicle from assembly lines on Friday and will start delivering the crossover Fadil on Monday. The Fadil, which uses a chassis from PSA Group’s Opel and will cost 394.5 million dong, or $16,900. The company will also produce sedans and SUVs using components from BMW and Magna Steyr.
“This makes a great contribution to the national economy,” Vietnamese Prime Minister Nguyen Xuan Phuc said in a speech during a ceremony at VinFast’s complex of six automated factories constructed in 21 months in the northern port city of Haiphong. “It affirms the Communist Party’s policy that the private sector is a very important driver of the economy. I want VinFast to go to the regional and global markets.”
According to Bloomberg, VinFast plans to make 250,000 vehicles during the first stage of operation, with output increasing to 500,000 by 2025. It also plans to begin exporting vehicles in mid-2020. The company pulled a Tesla and took 10,000 preorders for the Fadil a year ago.
And to prove it isn’t messing around, VinFast grabbed Jim Deluca, the former vice president of global manufacturing for General Motors, as chief executive officer.