FPT UNIVERSITY- CAMPUS CAN THO
Group Assignment [MKT101]
TOPIC: PROPOSE A NEW PRODUCT TO A REAL BUSINESS AND
PROPOSE A PLAN TO LAUNCH THIS NEW PRODUCT
Name of group member
Contribution
(%)
1. Vo Hoang Vu_CS161000
17%
2. Ngo Duc Huy_CE160644
16%
3. Nguyen Thi Hong Mai_CS171008
17%
4. Le Thi Tra Mi_CS170045
16%
5. Bui Nguyen Phu Qui_CS171577
17%
6. Nguyen Minh Nhat_CS171970
17%
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TABLE OF CONTENTS
I.
INTRODUCTION…………………………………………….…….1
1. Current demand for electric vehicles in Vietnam………………...1
2. Supply Ability……………………………………………………1
II.
III.
METHOD AND CONCEPTUAL FRAMEWORK…………….2
ANALYSIS RESULTS…………………………………………3
1. Overview of Vinfast………………………………………3
1.1.
Company introduction VinFast………………………..3
1.2.
History of formation and Development………………3
a)
b)
c)
d)
e)
f)
IV.
V.
In 2017…………………………………………………3, 4
In 2018…………………………………………………4, 5
In 2019…………………………………………………5, 6
In 2020 …………………………………………………6
In 2021………………………………………………….6, 7
In 2022…………………………………………………..7, 8
1.3.
Branches of VinFast………………………………….8
2. Analysis of environmental factors impact……………………9
2.1. Microeconomic…………………………….9, 10, 11
2.2. Macroeconomic……………………………..11, 12, 13, 14
3. Analyze consumer behavior……………………………….14
3.1. Segmenting…………………………………………..14
3.2. Targeting……………………………………………..14, 15
3.3. Positioning……………………………………………..16
4. 4P Factors…………………………………………………….16
4.1.
Price……………………………………………………….16
4.2.
Product…………………………………………………..17
4.3.
Promotion……………………………………………..17
4.4.
Place……………………………………………………18
5. Media analysis and public relations…………………………………..18
CONCLUSION………………………………………………18, 19
REFERENCES…………………………………………………..…..19
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I.
INTRODUCTION
1. Current demand for electric vehicles in Vietnam
The electric vehicle market in Vietnam is also considered an attractive market with a
rapidly increasing number of manufacturers and assemblers of electric vehicle products.
Data from the Registry shows the development trend of electric vehicles compared to
traditional fuel-powered vehicles. Although the proportion of motorcycles and electric
motorcycles produced in the country accounts for a small proportion, about 7% annually,
but maintains a steady growth rate.
Besides, the import of electric cars by companies into Vietnam has a great growth rate.
According to the newspaper, the number of imported electric cars in 2020 will increase
by about 500% compared to 2019.
In recent years, domestic manufacturing companies have participated in the production
and supply chain of electric cars. It is expected that in 2022 a series of electric vehicle
products will be introduced to the market such as buses and cars.
According to the latest updated data from the Vietnam Register, the number of electric
vehicles in Vietnam is still very small, in 2019 there are only 140 electric vehicles, in
2020 it will increase to 900 vehicles and by 2021 there will be more than 1,000 vehicles.
All of the above vehicles are imported and almost all are hybrids, plug-in hybrids, and
battery-powered vehicles account for a very small percentage.
2. Supply Ability
Vietnam's electric vehicle market is very exciting and competitive between imported and
domestic brands - VinFast. However, imported electric vehicles are subject to high import
tax and excise tax from 15-70%, so this operation will not be sustainable in the future.
Therefore, electric car products of Vietnamese brands will likely be preferred by
customers when they do not have to pay too much money for car ownership.
Although it has not yet resonated with other countries in the region about the use of green
vehicles in the environment, the electric vehicle market in Vietnam has great potential for
future development. Electric vehicles instead of vehicles using internal combustion
engines are a global trend in the future.
Currently, our country's urbanization createsr year, people are starting to have a priori
awareness of a better personal life. Our country is also looking forward to building smart
cities and applying high technology. Electric vehicles meet the criteria of a smart city,
plus "green lifestyle" communication activities are becoming stronger, making people
learn more about environmental protection vehicles.
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II.
METHOD AND CONCEPTUAL FRAMEWORK
Vingroup believes that a sustainable business is one that creates long-term value for its
partners to ensure its continued development in the future. We also aim at providing
clean, environmentally friendly products in every business segment, including green
transportation, eco-efficient smart living, and essential social services, while ensuring
biodiversity preservation.
Increased environmental consciousness has made it essential for businesses to choose
suppliers based on sustainable and green factors. This thesis proposes MultiCriteria
Decision Making (MCDM) models, including the Fuzzy Analytical Hierarchy Process
(FAHP), the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS)
for data processing and to provide assessment and selection of green and sustainable
suppliers in the automotive industry. Methods that could be applicable to studies on other
topics and used in this analysis to identify a supplier selection approach for the producer.
In particular, this study uses FAHP to determine the weights of the proposed criteria.
The FTOPSIS is employed to rank the suppliers. This study is outlined by the fact that
VinFast describes the value of social sustainability and the automotive sector in Vietnam.
This thesis is a piece of extensive knowledge of GSCM and sustainable supplier
selection. Following analysis, results highlight short-term and long-term
recommendations from donations of customers to increase collaboration between
sustainability businesses.
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III.
ANALYSIS RESULTS
1. Overview of VinFast company
1.1. Company introduction VinFast
VinFast (or VinFast LLC; abbreviated: VF, full name: VinFast Manufacturing and
Trading Company Limited) is a Vietnamese manufacturer of electric cars and motorbikes
established in 2017, with headquarters Headquarter is located in Hai Phong city, led by
Ms. Le Thanh Hai as Managing Director. This company is a member of Vingroup,
founded by Mr. Pham Nhat Vuong. The company name is abbreviated from the phrase
"Vietnam - Style - Safety - Creativity - Pioneering" (the letter Ph changed to F).
VinFast has a main assembly and production plant located in Hai Phong city, Northern
Vietnam. The factory covers an area of 335 hectares with a total investment of 3.5 billion
USD and is one of the largest industrial projects in this country. The company cooperates
in technology, engineering, strategic consulting support, and human resource training
with the largest global manufacturers of automobiles, spare parts, and heavy industrial
equipment such as BMW, Siemens AG, ThyssenKrupp, ZF, SAP, Schuler, Dürr AG,
Eisenmann SE, Grob Aircraft and Robert Bosch GmbH of Germany, ...
VinFast has registered with the Frankfurt Business Registration Office to establish a
representative office called "VinFast GmbH" in Germany, along with other representative
offices in the cities of Melbourne (Australia), and Shanghai (China). Quoc) and Seoul
(Korea). VinFast's future goal is to gradually increase the localization rate of components,
and move towards technological and technical autonomy, besides, the company will
continue to invest in development and expand domestic market share at the same time.
into international markets.
About the future product that VinFast can develop is an electric car using "solar energy"
technology with the function of "moving to park" in public places. It is an extremely
creative new step that car manufacturers around the world are always aiming for and
Vietnam has VinFast which is researching and developing. That modern car is called
VinFast SLP (VinFast Solar Parking).
1.2.
History of formation and Development
The history of the automobile industry in Vietnam is marked by the car named Chien
Thang, which was released in 1958. In 1970, Citroën car company released the La Dalat
car. In 1991, the Mekong Auto assembly joint venture was established. In 2004, Thaco
inaugurated Chu Lai - Truong Hai Automobile Manufacturing and Assembling Factory,
and Vinaxuki was also granted a license to manufacture and assemble automobiles.
The density of car users in Vietnam by the end of 2017 was 16 cars per 1,000 people. The
localization rate in cars by the end of 2016 is 15-18% for Thaco's passenger cars, 37% for
Toyota's Innova series. This ratio is higher for trucks and passenger cars. 2017 is also the
year in the process of implementing the AFTA agreement to reduce the import tax on
automobiles from ASEAN countries to 0%. This reduction in import duties resulted in the
reduction of domestically assembled vehicles for import, causing a labor surplus in the
auto industry.
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In 2017:
- On September 2, 2017, the VinFast automobile production complex project in
Dinh Vu - Cat Hai economic zone was started by Vingroup.
- VinFast's initial registered business activities are the production of motor vehicle
bodies, trailers, and semi-trailers, the production of spare parts and auxiliary parts
for motor vehicles and vehicle engines, shipbuilding, and structures. flotation
facilities, boat building, sports, and recreational boats, and production of
locomotives, trams, and wagons.
- In the following month, the company launched the contest "Choose a favorite car
with VinFast". Some of their partners up to this point are Magna Steyr, an Austrian
parts supplier, and Siemens, which jointly built the plant and research and
development center.
- Vingroup also signed a cooperation agreement with Bosch on the supply of spare
parts, components, software systems for cars and motorcycles, and business
management software.
- In the same month, VinFast announced the two most popular car models voted by
consumers in the first phase of Italdesign.
In 2018:
- On January 18, 2018, the company announced that it had completed the model
production contract with leading designer Pininfarina and purchased the
intellectual property rights from BMW.
- On February 7, they established the Mechanical and Mechatronics Technician
Training Center.
- On March 8, the enterprise launched a contest to vote for electric cars and small
cars "Choose your favorite car with VinFast - 2" with 36 models including 17
electric cars and 19 small cars.
- In the summer of that year, the company signed a contract to develop a
completely electric car with EDAG and established a joint venture factory with
Aapico Hitech Company of Thailand.
- In July 2018, VinFast started recruiting an authorized dealer to sell electric
motorcycles and opened a subsidiary in Germany.
- The following month, the Company signed a contract with Siemens to provide
technology and components for the production of electric buses and established
Vietnam Grand Prix Co., Ltd. with a business line focusing on organizing and
promoting events. events, exhibitions, conferences, and seminars.
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- That fall, the company signed a cooperation agreement with LG Chem of LG
Group in the production of international standard batteries for electric vehicles,
phones, and other industrial products.
- In October 2018, the company introduced two models LUX A2.0 of the Sedan
line and LUX SA2.0 of the SUV line at the 2018 Paris Motor Show.
- At the end of the month, VinFast signed an agreement with the Vietnam Oil
Corporation to deploy a system of charging stations and renting batteries at petrol
and oil trading points nationwide.
- In November 2018, VinFast inaugurated the eScooter smart electric motorcycle
factory and launched the first electric motorcycle product line, VinFast Klara, with
2 versions using Lithium-ion batteries and using Acid batteries- lead.
In 2019:
- On January 15, 2019, the enterprise continued to organize the contest "Choose a
favorite car with VinFast - 3" to vote for 7 models of cars with the Pre brand (short
for Premium) spanning 4 class A segments, Grade B, Grade C, and Grade D.
- Next month, the company completed the stamping and welding of the body of
VinFast Lux SA2.0.
- The Suv VinFast Lux SA2.0 model was officially completed, rolled, and
prepared to be tested. 155 VinFast LUX cars have been sent for safety testing in 14
countries on 4 continents.
- Before summer, Vingroup decided to establish VinBus public passenger transport
business using electric buses manufactured by the company[127] in a relationship
of technology and components with Siemens.
- Vingroup also signed a cooperation agreement with Viettel to build a network of
charging points and exchange electric vehicle batteries at Viettel's business
locations.
- In May, the company conducted a test run of 58 Lux and Fadil vehicles in
Vietnam. After that, the company announced that Fadil cars met safety standards
through test results at GM Korea.
- In the summer, VinFast inaugurated and put into operation the car factory in
Dinh Vu - Cat Hai economic zone.
- Next month, Kreisel Electric based in Rainbach im Mühlkreis, Freistadt,
Oberösterreich, Austria signed a cooperation agreement on battery packaging for
VinFast electric cars. By the 28th, VinFast has handed over about 200 Lux cars
including Sedan A2.0 and Suv SA2.0.
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- In September of the same year, VinFast acquired 51% of AAPICO Hitech's
shares in AAPICO VinFast Auto Parts Co.
- VinFast announced the policy of recalling discarded products in the strategy of
preserving the environment. At the end of the year, the enterprise sponsored and
handed over 393 Lux cars including Sedan A2.0 and Suv SA2.0 to the Material Logistics Subcommittee, ASEAN National Committee 2020 to transport delegates
during their visit to Vietnam. attend the meeting.
- In December, the company announced the price list of VinFast Lux and VinFast
Fadil auto parts, and the selling price of Ludo, Impens, and Klara S.
- In 2019, VinFast sold a total of 17,214 units including Fadil, Lux A2.0, and Lux
SA2.0 models.
In 2020:
- VinFast revealed information about its intention to expand to Australia.
- In March, Discovery Channel made a reportage clip about VinFast in particular
and the automobile industry in Vietnam in general.
- Vingroup announced VinSmart factory and VinFast factory to open more
ventilator manufacturing fields.
- Before the summer, the company opened 14 more service workshops, bringing
the total number of service workshops nationwide to 54.
- In the summer of the same year, VinFast announced the selling price of LG
Chem-VinFast Lithium-ion batteries (for VinFast Klara S, Impens, and Ludo
electric motorbikes).
- VinFast continues to open an office in Melbourne (Australia) with the Institute of
Automotive Technology 2 led by Kevin Yardley as director.
- The company also plans to open an automobile test center in Australia. This
Vietnamese car company also has the ambition to contribute to the development of
the global auto industry by opening a test track for other automakers to freely use.
- Also in December, male singer Son Tung M-TP combined to launch special
versions of VinFast Ludo Mint To Be and VinFast Impens Milky Sky electric
motorcycles.
Năm 2021:
- VinFast opens 2021 by announcing 2 electric motorcycles and 5 car lines,
including 3 electric cars and 2 petrol cars with the brand names VF31, VF33, and
VF33.
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-
On February 16, 2021, the Southeast Asia New Car Assessment Program (ASEAN
NCAP) awarded VinFast the "New car brand with a high commitment to safety"
award.
-
On March 23, VF received an order for the first electric C-segment SUV, VF e34,
which is the VF31 model with 5 seats, the engine has a maximum capacity of 110
kW, maximum torque: of 242 Nm. , 6 airbags, using a 42 kWh lithium-ion battery
with a delivery plan in November of the same year.
-
At the end of March, VF opened 64 more showrooms in 30 provinces and cities in
Vietnam. In April, VF partnered with NVIDIA to use chips for smart electric
vehicles launched in 2022.
-
In July, VF opened branches in the USA, Canada, France, Germany, and Nether
lands. On 27th, VG announced the appointment of Michael Lohscheller as General
Director of VinFast worldwide.
-
On August 23, VinFast signed a cooperation agreement with Gotion High-Tech to
build a Giga factory to produce LFP battery cells.
-
On November 18, VF introduced 2 electric car models VF e35 and e36 at the Los
Angeles Auto Show 2021, with the companionship of Supercar Blondie, Nas
Daily, Lana Condor, Maria Tran, Sunisa Lee.
-
In November, VF handed over 18 cars including 5 VinFast President and 13
VinFast Lux A2.0 to Lao market dealer Phongsupthavy according to the agency
agreement in June 2021.
-
On December 4, VinGroup transferred the entire 51.52% stake in VinFast to its
subsidiary, VinFast Singapore.
-
On December 12 VinFast plans to introduce electric car models e32, e33, e34P,
e35, and e36 at CES 2022, and at the same time start receiving price
announcements and accepting orders for e35, and e36.
In 2022:
- VF uses blockchain technology and NFT to distribute electric vehicles VF e35,
and e36 to global customers from 2022.
- VinFast announced to change of the name of electric cars VinFast VF e32 to
VinFast VF 5, VinFast VF e33 to VinFast VF 5, VinFast VF e34P to VinFast VF 7,
VinFast VF e35 to VinFast VF 8 and VinFast VF e36 to VinFast VF 9.
- At the beginning of April 2022, VF announced its participation in the New York
International Motor Show and organized a tour from Ha Long to Sa Vi cape which
was recognized as a Vietnamese record for honoring "The most electric car
caravan in the world".
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- Also in the same month, VF announced to choice of B-EV Motors as the official
distributor in Israel and then introduced 5 new electric motorcycle models using
LFP battery technology.
- VinFast cooperates with Renesas Electronics from Japan in providing
components such as electronic systems (System on Chips - SoCs),
microcontrollers, analog semiconductors, and electronics.
- At the 121st Paris Motor Show in 2022, VinFast was awarded the first "Rising
Star" award by Autobest (The Rising Star).
1.3.
Branches of Vinfast
VinFast showroom agents in the North
• VinFast Thach That Electric Motorcycle Showroom
Address: Highway 21, Hoa Lac Hamlet, Binh Yen Commune, Thach That, Hanoi.
• VinFast Chuong My Electric Motorcycle Showroom
Address: Noi An residential group, Chuc Son town, Chuong My district, Hanoi
• VinFast Vinh Thanh
Address: 42 Cau Buu, Tan Trieu Commune, Thanh Tri District, Hanoi
VinFast showroom agents in the Central region
• VinFast Ho Xa Electric Motorcycle Showroom
Address: 38A Le Duan, Ho Xa TT, Vinh Linh District, Quang Tri Province
• VinFast Huong Tra Electric Motorcycle Showroom
Address: 59 Cach Mang Thang 8, Tu Ha Ward, Huong Tra Town, Thua Thien Hue
Province
• VinFast Hai Chau
Address: 115 Nguyen Van Linh, Nam Duong Ward, Hai Chau District, City.
Danang
VinFast showroom agents in the South
• VinFast Thuan Nhan
Address: 447-447A-447B Cong Hoa, Ward 15, Tan Binh District, City. Ho Chi
Minh
• VinFast 517B2 Dong Khoi Electric Motorcycle Showroom
Address: 517 B2 Dong Khoi Avenue, Quarter 03, Phu Khuong Ward, Ben Tre City,
Ben Tre Province
• VinFast Can Tho
Address: 274 30/4 Street, Hung Loi Ward, Ninh Kieu District, Can Tho
2. Analysis of environmental factors impact
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2.1. Microeconomic
a. Customers
Customers inside the business: are the people who work in the business providing
products and services, in the departments and departments in the customer care process of
the business. Company employees are the most loyal customers and advertising for
products is easiest. Businesses need to create good awareness for the target customer
group, build an effective distribution system for each of those customer groups, and have
an attractive message/support package to help that segment buy a car easily.
It is easy to see that Vingroup has a huge list of potential customers who are using real
estate, tourism, medical examination, or have children to go to school at member
businesses. Vingroup also has too many beautiful locations to open distribution
showrooms. Therefore, VinFast will have a certain advantage.
For VinFast, from the customer's perspective, this business was interested in:
- Increasing consumer demand: the residents of Hanoi and Ho Chi Minh City
increasingly need to use "clean" vehicles. Therefore, Vinfast produces Klara
electric motorcycles with lead-acid and lithium-ion battery versions, which are
compact, lightweight, and environmentally friendly.
- After-sales service: Vinfast offers a gift package worth 15 million VND to
customers who have received Fadil cars through the program "Top notch
experience with VinFast Fadil". In addition, the program "Exchange old for new,
applies to owners of all car manufacturers who want to change to Vinfast.
- Reasonable price for the market segment: In the domestic market, this brand
officially accepts deposits from customers with a commitment of "three nos": no
depreciation, no financial costs, and no calculation. profit on product cost.
- Quality is the most important factor: According to VinFast, the company's car
models will in turn undergo hundreds of tests for quality and safety standards in 14
countries before mass production.
b. Competitor
According to the plan, VinFast will launch a Premium car line - abbreviated as Pre in
2020, spanning all segments A, B, C and D, from small cars, sport utility vehicles to
family cars. . Combining 3 introduced car lines has brought the total number of VinFast
cars to 7. Thus, in the future, VinFast will have to compete with many rivals.
In the class A urban car segment (also known as the low-cost car segment), VinFast
already has a key product, the Fadil model (listed price is VND 423 million). VinFast
Fadil's competitors will be two Korean car models assembled in Vietnam, namely
Hyundai Grand i10 and KIA Morning, of which Hyundai Grand i10 is the most popular
car model in the market and the top of the class A.
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VinFast also has 1 car model in the D-class car segment, the LUX A20 model (VND
1,366 billion). In this period, the rival of LUX A2.0 is none other than two prominent
names, Toyota Camry and Mazda6.
The Vietnamese electric motorcycle market is divided into two segments, domestic and
imported, of which most of them originate from China. About 10 years ago, Chinese
electric motorcycles began to be introduced into our country and were well received by
Vietnamese people because of their low prices, no need to fill up gas, and no driver's
license, but it has many disadvantages.
Right after VinFast, a number of foreign electric motorcycle companies also officially
entered Vietnam with the desire to dominate the market share when there were few
competitors.
In September 2019, the Korean electric motorcycle company MBL officially entered the
Vietnamese market. This brand launched 3 different versions: Mbi X, Mbi S, and Mbi V
with prices ranging from 39.8 million to 59 million VND. The price is much higher than
VinFast Klara. However, according to many people's reviews, MBI not only has an eyecatching design and many technologies but also very good quality.
In November, another "big" electric car jumped into the Vietnamese market, Yadea. The
Chinese electric car company is known for its largest sales in the world. Yadea has
actually been present in the Vietnamese market for a long time and has expressed its
ambitions when introducing 3 models from cheap to high-end including Yadea E3, Ulike,
and G5 with low prices suitable for many market segments.
-
Potential competitors with cars:
Ford, Daimler, BMW, GM, and many others have pledged to invest about $225
billion in electric vehicles over the next five years. Volkswagen leads the race with
$44 billion, ambition to end the development of gasoline and diesel models by 2026
and 40% of its sales are electric cars by 2030. The company has just launched the
Mustang Mach-E SUV which is coming soon. pure electric pickup model F-150.
Tesla is an American electric car company. When it comes to electric vehicles, this
is a formidable competitor in terms of advanced technology and eye-catching
exterior. In the near future, when Tesla is imported to Vietnam more, this will be a
strong competitor of Vinfast.
-
Potential competitors with electric motorcycles:
At the 2019 Indonesia International Motor Show, Indonesia's first electric
motorcycle model named Gesits was officially launched. Gesits is researched, and
developed by PT Gesits Technologies Indo (GTI) and invested in a manufacturing
plant in Cileungsi, Bogor, West Java.
With this plan, Gesits promises to become a direct competitor to VinFast Klara in
the electric motorcycle segment when it goes to the international market. After
analyzing the external environment, VinFast can see its opportunities and challenges
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when initially entering the automobile-motorcycle manufacturing and trading
industry.
c. Distribution channel
Vinfast's distribution system is not inferior to other competitors. By the end of 2019, the
list of VinFast dealers has more than 40 dealer addresses 18, 2S, and 3S put into
operation. Continuing, VinFast is expected to open 76 more VinFast Showroom doors by
the end of 2020.
Vinfast, instead of establishing its own distribution system from scratch, acquired
Chevrolet's entire car distribution system in Vietnam. Vinfast also chooses the form of
distribution as wholesale, 1-level Lithium-ion channel (Vinfast -> Distributor -Impens
offers to buy a car).
d. Supplier
VinFast is cooperating with a series of well-known suppliers in the automobile and
motorbike manufacturing and trading industry:
- Bosch - the world's largest supplier of automotive technology and components.
- Schuler AG – stamping line.
- Eisenmann – technology, assembly line.
- Durr AG - supply paint line.
- LG Chem, belonging to LG Group - manufactures and supplies international
standard batteries.
- Intellectual property rights of BMW - a famous German engine manufacturer.
2.2. Macroeconomic
a. Economic
In recent years, Vietnam has had a remarkable and stable growth rate. 2017 is considered
the year of miracles for the Vietnamese economy. The economic growth rate reached
6.81%, exceeding the set target of 6.7%. In the second half of the year, there was a
spectacular breakthrough of over 7% (7.46% in the third quarter, 7.65%) in the fourth
quarter, creating a big boost for the economy of our country. This is also a record number
in the past 10 years. In the following years, the economic growth rate remains impressive
when reaching 7.08% in 2018 and 7.02% in 2019. The year 2020 is considered a year of
great difficulties and challenges for the world economy in general, including Vietnam.
However, Vietnam's economy still maintained its growth with an estimated GDP growth
rate of 2.91%.
The Covid-19 epidemic has complicated developments, disrupting the social-economic
activities of countries around the world; The US-China trade conflict continues. In the
country, natural disasters and epidemics have a significant impact on the activities of the
economy and people's lives; unemployment and underemployment rates are high.
However, with drastic and effective solutions in realizing the dual goal of "both disease
prevention and socio-economic development", Vietnam's economy still achieved positive
results with the maintenance of economic growth. chief.
Besides, our country also successfully controlled inflation below 4% by 2020.
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development in 2017 reached the target of 3.5%, and in 2018 it was 3.54%. Especially by
2019, inflation is only to 2.79%, much lower than growth. People's income level is
therefore not heavily affected, there is a tendency to increase consumption.
The average consumer price index in 2020 increased by 3.23% compared to the previous
year, reaching the target of controlling inflation, keeping the average CPI in 2020 below
4% set by the National Assembly in the context of a year with many unpredictable
fluctuations. CPI in December 2020 increased by 0.19% compared to December 2019,
which is the lowest level in the 2016-2020 period.
b. Globalization
Since Vietnam joined the WTO in 2015, the globalization process has been taking place
at an urgent and continuous pace. Vietnam has achieved many important achievements in
economic development thanks to the push to open up, integrate into the world economy,
and actively participate in the network of multi-tiered free trade agreements.
International integration contributes to market expansion, increasing competitive
advantages for Vietnam's exports compared to other countries in the region; Thereby, the
structure of exports has changed in quality. On the other hand, extensive international
integration helps to reduce the cost of imported input materials, thereby increasing the
competitiveness of goods of the same type in the domestic and international markets, and
at the same time reducing the competitive pressures of other countries. imported goods.
c. Politics environment
The political environment includes the legal system, government agencies, and the role of
social pressure groups. The developments of these factors strongly and also directly
influence corporate governance decisions.
Realizing the importance of the auto-motorcycle industry, right from the beginning of the
year
In 2017, the Government announced many policies to facilitate and support Vietnamese
businesses
participate in this field.
In addition, the Government has also announced many policies to facilitate and support
Vietnamese enterprises to participate in this field. Because that is not only the future of
the automobile industry – it is also a long-term and sustainable vision for the Vietnamese
industry. VinFast, similar to other automobile businesses, will be subject to tax rates as
prescribed by law such as corporate income tax, import and export tax, value-added tax
(VAT), special consumption tax, …
However, this is a Vietnamese trade, so there are more incentives. VinFast in the first
phase will not charge financial fees including working capital, interest paid on loans to
build factories, etc., or depreciation costs, without interest. The price of the car will be
calculated by the cost of production and the cost of sales.
d. Sociocultural environment
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In Vietnam, it is a fact that there is an imbalance between the number of vehicles on the
road and the traffic technical infrastructure. Besides the lack of synchronization, the lack
and degradation of transport infrastructure is the delay in the construction progress of key
traffic works.
The current means of public passenger transport is mainly buses, which only meet 8% of
people's travel needs. When the public transport system is not really developed, and there
are not many constraints in registering to own a personal car, the number of private
means of transport continues to increase rapidly, especially motorbikes. because the cost
of this type of vehicle is generally not too high.
High traffic density, many projects under construction, unreasonable traffic arrangement,
low traffic awareness of the people, etc. are the causes that make the traffic picture in
cities become should be worse.
e. Natural environment
Natural factors are factors with specific characteristics of each region, it can be said that
this is the factor that forces the industry to adapt. Enterprises in the industry must have a
thorough understanding to make the right decisions for their products.
Natural conditions will determine the needs of consumers regarding the requirements and
characteristics of the vehicle. To understand those characteristics, it is required businesses
understand and understand the characteristics of the terrain, weather, climate, and
environmental conditions, ...
This environment has not had much of an impact on the auto industry. This factor itself is
just a condition and sets out for businesses a number of separate requirements so that they
can research and create a car that is suitable for the natural conditions of Vietnam.
f. Technology environment
Technological factors have a strong impact on the world economy, its power can destroy
or create a new economic industry. The impact of the technological environment is
mainly expressed through new products, new technologies or materials, and production
processes applying new technologies.
The present era is considered to be a "Continuous explosion of destruction and creation".
A series of inventions and inventions in many fields, both old and new, have been
published, especially in applied research sciences that are developing faster than ever.
In the auto-motorcycle industry, we can divide it into two separate contents. Firstly, the
car itself such as appearance, engine, design, factors related to the use value, quality of
the car that the customer chooses, and secondly, the fuel source used for the vehicle.
The current clean fuel source is difficult to obtain with the current average cost that
businesses are spending on fuel procurement. Two newly discovered fuel sources are
electricity and biotechnology.
Investment in technology in the field of manufacturing and trading cars - motorcycles is
huge. However, if it is possible to overcome the challenges and the disparity in
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experience and technical level in the automobile manufacturing industry with foreign
enterprises, VinFast in particular and Vietnam in general can completely opportunity to
establish a foothold in the international market.
3. Analyze consumer behavior
3.1. Segmentation
VinFast's market is divided into 4 segments.
a. Geographic Segmentation
VinFast's cars are distributed to almost every place in VietNam. However, their products
are present in large urban areas, with wide roads and density populations such as Ho Chi
Minh City, Ha Noi, Hai Phong, Binh Duong, etc. In fact, we rarely see electric charging
stations in rural areas, because their electric vehicle products are difficult to distribute to
rural areas, most of which are gasoline-powered cars.
b. Demographic Segmentation
VinFast develops many product lines such as electric buses, electric motorbikes, and cars
targeting many different customer segments
Age: 10-20.
No income or from 1-5M
per month.
Student, start-up, stay-athome mom, elderly.
Go out rarely or just for
school.
Price-conscious.
Age: 21-35
Income: 30-60MWorking.
Have a busy life.
Dynamic.
Go out often.
Focus on personal brand
building.
Price-conscious but also
cares about quality.
Age: 36-60
Income: 500M or more.
Working.
Buy products for family or
work.
Going out depends on the
nature of the job.
Cares about quality
c. Psychographic Segmentation:
VinFast became the first Vietnamese car brand to arouse national pride, especially among
young people. With a modern and dynamic and luxurious design, their products can make
the customers satisfied with the quality that matches the price. Moreover, VinFast also
develops electric vehicles to help protect the environment and spread meaningful
messages to its customers.
d. Behavioral Segmentation:
VinFast’s customers often buy products through distributors. Although there are some
comments complaining about the quality, VinFast products still make the majority of
customers satisfied and they will recommend them to the friends about their products.
3.2. Targeting
Of course, typical customers of VinFast are also Vietnamese people, who are still
depreciated and are not eligible to own cars to move on the street. It seems that from the
past until now, only people with high incomes have had the opportunity to drive a car, an
apartment building made in Vietnam.
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Some of the goals that VinFast aims at are consumers in the segment of electric
motorbikes and cars.
3.2.1. VinFast Electric Bike:
a) VinFast Impes and VinFast Ludo:
- Ages: 15 - 22.
- Social Class: Middle.
- Live in City.
- Lifestyle: Modern.
- Occupation: Students.
- Focus on Teen modern with modern design
b) VinFast Klara S and VinFast Feliz:
- Ages: 20 - 45.
- Income: Middle.
- Social Class: Middle.
- Occupation: Officer.
- Live in City.
- Lifestyle: Modern.
- Have girly designs, small, easy to drive in a crowded city.
c) VinFast Theon:
- Ages: 20 - 45.
- Income: High.
- Social Class: High.
- Live in City.
- Lifestyle: Modern.
- Mainly design, it’s a luxury electric bike
d) VinFast SLP: It is very special because it is powered by solar energy.
- Age: 16-55
- Social Class: Low – Middle
- Live in City
- Lifestyle: Modern
- Occupation: Student and Elderly
- Focus on environmental adaptation and suit many people
3.2.2. VinFast Cars:
a) VinFast Fadil:
- Ages: 25 - 45.
- Income: Middle.
- Social Class: Middle.
- Live in the city.
- Lifestyle: Modern.
- Use for a small family.
b) VinFast Lux A2.0:
- Ages: 15-55.14
- Live in City.
- Income: High.
- Social class: Middle and High.
- Lifestyle: Modern.
- Use for companies or a family with less than 4 people.
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c) VinFast Lux SA2.0:
- Ages: 35 - 55.
- Income: High
- Social Class: High
- Live in the city.
- Lifestyle: Modern.
- Use for a big family with more than 4 people
3.3. Positioning
3.3.1. National pride - The first Vietnam domestics brand
VinFast is the first time in history, a company founded by Vietnamese to produce a car.
Before being introduced VinFast created a design vote that influenced millions of
Vietnamese people.
In November 2018, VinFast Lux A2.0 and Lux SA2.0 were introduced at the Paris Motor
Show with David Beckham creating a huge event that was reported by a lot of
newspapers, magazines, and TV. A car “made in Vietnam” appears in one of the biggest
car events in the world which impacted people a lot.
3.3.2. Low price high quality
The VinFast car always has the price of lower classification and quality of higher
classification:
VinFast Fadil with classification A-Minicompact - car price but has a 1.4L I4
engine which only appears on classification B - Subcompact car. It was developed based
on Opel Karl Rocks - a German car brand.
VinFast Lux A2.0 has classification D - Large Family car -, but it has a 2.0L
BMW-N20B20 I4 T engine and 8-speed ZF 8HP automatic transmission gearbox which
was developed based on a classification
VinFast Lux SA2.0 like Lux A2.0 uses an engine and gearbox which was
developed based on the BMW X5 - a Luxury SUV Car.
4. 4P Factors
4.1. Price
As for VinFast's price marketing strategy, this company targets people who want highquality cars that are affordable. Therefore, they price their products a bit higher than
Korean-Japanese automakers, but lower than European automakers like Mercedes or
BMW.
Just like that, VinFast has successfully penetrated the market, making it easier to gain
market share at low prices. In addition, VinFast also implements many promotions and
sales discounts to increase revenue.
VinFast's car models are almost suitable for many people and working classes in society.
About a product that is about to be launched in the near future, VinFast SLP, VinFast
revealed a price of only 18,000,000 - 21,000,000, to serve a wide range of students and
the elderly.
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4.2. Product
VinFast's product lines are extremely diverse with many models continuously launching
such as VinFast Fadil, VinFast Lux, VinFast President, VinFast Premium, etc. Therefore,
they can deploy marketing strategies about products immensely. effectively, quickly
becoming the market leader.
Not to mention, the products manufactured by VinFast before being launched all have
strong communication. Almost every product-related factor is the leading factor such as
Leading manufacturing technology, leading manufacturing technology and leading
design, etc.
Besides, VinFast also hires two famous Italian designers, ItalDesign and Pininfarina Famous designers associated with the names of Ferrari and Lamborghini to resonate. At
the same time, they cooperate with famous automotive engineering and manufacturing
companies from all over the world: Magna Steyr and Bosch, AVL, ZF, GROB,
Thyssenkrupp, AVL, and MAG.
VinFast always explores and learns about its customers, sees what they need, and wants
to develop a reasonable strategy. And most recently they have grasped people's need for
electric cars powered by solar energy. Because the weather in Vietnam is almost sunny all
year round, it is very convenient to use in charging and moving. It is a VinFast SLP
product. It is one of the most expensive products of VinFast.
4.3. Promotion
With the form of marketing promotion, VinFast has implemented many incentive
programs, advertising campaigns, and widespread communication to attract the attention
of customers.
With promotions: Vinfast implements unique sales policies such as a 3-zero price policy,
interest-free loans for installment loans for the first 2 years, a 10% discount when paying
directly, etc.
With advertising and communication campaigns: VinFast chooses social networks to
increase its brand awareness. In just a short time, the image of VinFast has appeared
especially impressive in the eyes of families and people.
I always mention the new product VinFast SLP using solar energy and the ability to selfpark in public places. It certainly has a lot of incentives when it is launched and used.
According to the manufacturer's announcement, when you buy a car, you will be given 1
year of maintenance and replacement of energy panels if you want and a lifetime
warranty if the fault is caused by the manufacturer. At the same time, if you buy 2 cars at
the same time, you will receive a discount voucher for the 3rd product up to 50%. In
order to answer the needs of customers and create a trust for everyone before and after
buying the product.
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4.4. Place
For VinFast's location strategy, the company chose for itself the form of distribution
through one-level channels. For example, they operate in a linear manner such as VinFast
→ Distributor → Finally, customers.
Although there are strict selection criteria, but VinFast has many policies to support
agents. In particular, they also invited individuals and other car sales units to join the
system, which created a fatal weakness. They bring achievements to VinFast is the
expansion of the brand's distribution network to the whole country.
In addition, VinFast also cooperates with GM (General Motors) to limit the time and
human resources to self-design and manage a distribution system. From there, in order to
promote the trade promotion strategy for its vehicle lines in the Vietnamese market more
quickly.
VinFast wants its customers to experience both old and new products better, so they don't
have too many intermediaries in the process of selling products. They always do their
best to support where to sell, where to charge the battery and where to advise on
products. VinFast SLP electric car products are no exception, supporting most
showrooms in provinces across the country. Hopefully, in the future, the product will be
released. You can come to see and experience this special product.
5. Media analysis and public relations
5.1. Taking the lead in terms of ethnicity
VinFast cleverly evokes national pride inside each Vietnamese person before bringing the
product to the international market. The car will be labeled Made in Vietnam, 100% made
and operated by Vietnamese people. This has greatly attracted the attention of Vietnamese
customers.
5.2. Make the most of Social Media channels
Aiming to capture the importance and rapid spread of Social Media, Vinfast has stepped
up the way of brand advertising on all social networking platforms. VinFast has
constantly put the number of Seeding brands on the official Fanpage and brought about
an extremely possible result. Almost 90% of the responses are positive and know the
VinFast brand when asked.
5.3. Increase coverage with Influencer Marketing
VinFast also follows the trend of using Influencer Marketing, and KOLs in the
community to increase brand coverage. The names selected by VinFast include Ngo
Thanh Van, Hoang Thuy, Tran Tieu Vy, Bui Tien Dung, Nguyen Quang Hai, etc. All are
names associated with Vietnamese people.
VinFast has successfully positioned not only its brand in Vietnam but also in the
international arena. This is really a strategy worth studying and learning.
IV.
CONCLUSION
VinFast is the first automobile manufacturing and trading enterprise in Vietnam, taking
its first steps. In doing business, understanding the business environment is especially
important, helping businesses find opportunities, challenges, strengths, and weaknesses to
decide on management issues so that the business develops. in a sustainable way and
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