Vietnamese EV maker VinFast remains optimistic despite challenging entry to U.S. auto market

It has been a problem for Vietnamese electrical car maker VinFast to crack the U.S. market amid robust competitors and softening demand.

VinFast reduce month-to-month lease costs for its first U.S. consumers to $399, down from $599 monthly. American rivals like Tesla slashed costs to draw extra prospects and drive gross sales, whereas Lucid forecast lower-than-expected 2023 manufacturing after orders dropped.

But VinFast CEO stays optimistic on the long-term demand for EVs.

“I think everyone agrees that the whole industry or the whole world is moving from internal combustion engine to EVs,” CEO Le Thi Thu Thuy stated on CNBC’s “Squawk Box Asia” on Tuesday.

“And if you take that view, and if you look at the legislation in all different countries and and imagine how many electric vehicles need to be on the road in the coming years, in the coming decade, there’s a lot of room for a lot of players in the market,” stated Le.

She added that VinFast is coming into the market “with clear approaches” corresponding to providing premium high quality and accessibility for the mass market with out reducing corners in cybersecurity and useful security.

“We still have a lot to prove. It’s a lot ahead of us,” Le stated.

Software issues delayed deliveries of VinFast’s first batch of automobiles to U.S. consumers from December 2022 till March 2023. But on March 1, solely 45 SUVs arrived out of 999 EVs that had been alleged to be delivered.

VinFast automobiles are additionally at present ineligible for the $7,500 tax credit score within the U.S. as a result of they aren’t made within the U.S., however are made in Vietnam — which can influence their U.S. gross sales.

“Of course, in the long run, we also are pushing for the plants in North Carolina and to make sure that in the future, our vehicles will be qualified for tax benefits under the IRA,” stated Le.

Le beforehand advised CNBC that the agency is within the closing levels of acquiring permits for its manufacturing plant in North Carolina and that the plant is on monitor to begin manufacturing in 2024.

While the corporate filed for an preliminary public providing in December, it has not but launched its roadshow.

“For us, it’s not about raising monies but it’s a lot about making the company more international and other corporate purposes and the market has been challenging as you know,” stated Le.