Considering the growing trend towards green development, investment in electric vehicles (EV) is always and unquestionably the right thing to do.
VinFast, the only electric vehicle (EV) automaker in Vietnam, has just brought their latest electric SUV duo – VF8 and VF9 – to the International Electric Vehicle Conference and Exhibition (EVS35) in Norway from June 11th to June 15th, 2022.
Exhibiting at EVS35 could be the next step in VinFast’s market development strategy following its successful debuts in the United States. VinFast’s efforts to establish operations in vast markets, including the US, Canada, Germany, France, and the Netherlands, have been documented. Vinfast’s expectation is undoubtedly to be able to expand the market size not only in the US but also throughout the vast continent of Europe – a mecca for EVs. In particular, Norway is considered the “capital” for EVs in Europe, if not the entire world, as revealed in 2021 publications that nearly two-thirds of all new vehicles registered in Norway are EVs, a figure unmatched by any other country.
More prominent figures were to come: In 2021, up to 64.5% of newly registered cars in Norway were EV, a dramatic step-up from the 54.3% figure in 2020. The Norwegian Electric Vehicle Association has hailed this new milestone and expects EV sales to account for more than 80% of new cars this year.
Many other European countries such as the UK, France, and Germany have also implemented decisive measures to promote EV use outside of Norway. Here, EVs are considered the key to the “green revolution,” a significant step to regaining the “blue sky.” EVs are becoming increasingly appreciated even before the surge in gasoline prices, placing considerable stress on users of internal combustion engine (ICE) vehicles. This especially holds for people in Europe and the US who struggle to navigate rampant inflation.
This phenomenon is not limited to Europe. As noted by the International Energy Agency (IEA), EV sales have skyrocketed in major markets such as the US, China, and Europe in 2021. EV sales are expected to increase sharply in 2022, which the IEA has likened to a parade of EVs.
Meanwhile, according to a McKinsey study, electrification will play an essential role in transforming the mobility industry while opening new doors for all vehicle segments, despite variances in the speed and extent of this change.
In this context, the International Electric Vehicle Conference and Exhibition will attract great attention from consumers and significant car manufacturers worldwide – the real VIPs.
At EVS35, Vinfast’s representative shall be giving a speech on the role of electrified mobility in efforts to reduce traffic emissions in Europe and commitments to creating a green future for consumers.
The world automobile industry is undergoing a drastic transformation, as many big companies switch to producing electric cars instead of ICE.
Currently, Elon Musk’s Tesla could be considered one of the largest EV manufacturers in the world. In March 2021, Tesla inaugurated Germany’s largest EV factory. In April, a mega factory in Texas, USA, was also inaugurated. Last year, Tesla delivered more than 1 million EVs despite production difficulties due to the impact of the global chip shortage.
In a press release published in April 2022, Tesla reported how it had set a new record for quarterly profit, with a figure of up to $3.3 billion. This single number has shown how big the potential market is for EVs. This is precisely why Elon Musk remains open to the possibility that his company will produce more than 1.5 million EVs this year.
In addition to Tesla, many other “big names” in the automobile industry are also “giving it a shot.” For example, Ford has targeted going fully electric with its passenger transport vehicles by 2030 within the European market. Similarly, Audi has announced that from 2033 onwards, EVs shall be the only products they offer. Many other companies also believe that EVs shall set the standards for the future.
VinFast is an example; after only a few years of becoming a “rookie” in the global car market and having gained initial successes, at the beginning of this year, it officially announced to stop producing ICE vehicles and switch to EV manufacturing by the end of 2022. VinFast has confirmed their $4 billion investment into a project for developing EV and battery production in North Carolina, USA, which has attracted appraisal from POTUS Joe Biden.
Even Apple, a non-automaker, has decided to participate in the EV market, as announced by this company back in 2020. Recently, Taiwanese media has widely reported that Foxconn has won the tender to produce the world’s most anticipated electric car – Apple Car, dubbed “an iPhone with four wheels.” This car is expected to be launched in 2025 and positioned in the high-end car segment with a selling price of no less than $100,000, posing direct competition to Tesla Model S.
Meanwhile, car companies from Japan, Korea, and China, such as Mitsubishi, Nissan, and even startups such as Devo or Nio, are also actively investing in R&D for electric cars that are compact, economical, and minimalist in terms of technology and operation.
A new revolution in the automotive industry is over the horizon as commitments on greenhouse gas emissions, and most countries in the world have declared green development; there has been a recent “nudge” due to the steep rise in gasoline prices.
The battle for electric cars is expected to be even more aggressive shortly, attracting both traditional car corporations, technology giants, and “risk-taker” startups. It is unknown who shall win or lose in this “race,” but considering the current trend toward green development, investing in EVs is always the right choice, according to experts.
Given that Vietnam has signed the commitment toward net-zero emissions by 2050 at COP26, it is almost impossible for Vietnam to miss out on this game.
A recent study by Savills Vietnam indicated that to implement this commitment, Vietnam has to solve numerous challenges, including fundamentally changing the economic structure towards investment and using green technology in all fields. In particular, the development trend of green and intelligent traffic is the right direction.
As explained by Ms. Tran Minh Ai, Senior Director of the Real Estate Management Division of Savills Vietnam, Vietnam is a latecomer in converting to EVs yet experiencing quite a rapid growth. Admittedly, compared with the percentage of people using ICE vehicles, green vehicle users are still much few and far between.
Electric cars have recently become more prevalent in Vietnam, especially after VinFast introduced EVs into the domestic market. The existing demand for EV products has led many experts to believe that electric cars could potentially be a “golden opportunity” for Vietnam to “rewrite” the automobile industry and that Vietnam can become the “headquarters” for electric car manufacturing in the future.
The arrival of VinFast amidst the massive presence of automobile industry giants in Vietnam, namely Ford, Honda, Nissan, Toyota, etc., could well be the most solid reasoning behind this statement.
This also corresponds to the end of last year, when both the Vietnam Association of Mechanics and the Vietnam Automobile Manufacturers’ Association sent documents to the Prime Minister regarding the development of EVs in Vietnam. The Prime Minister then asked the Ministry of Industry and Trade to coordinate with relevant ministries and agencies to study and handle enterprises’ recommendations on proposals to develop a strategy to establish the green vehicle industry in Vietnam.
According to the proposal of VAMA and the Vietnam Association of Mechanics, while many countries have taken the lead in developing the automobile industry using clean fuel to solve the problem of carbon emissions, Vietnam has not yet built a mechanism and a specific roadmap for carbon trading policy, as well as building infrastructure (charging stations) on a national scale.
The issues surrounding legislation and charging stations are not unique to Vietnam but a global concern. This will be the problem that countries, including Vietnam, must address to promote EV development. VinFast is Vietnam’s sole manufacturer of developing charging stations for EVs. Shortly, such charging infrastructure will be crucial in enhancing the consumer power of EVs.
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