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Vietnamese EV maker VinFast stays optimistic regardless of difficult entry to U.S. auto market

A VinFast VF8 electrical automotive on show in a showroom.

Yu Ruidong | China Information Service | Getty Photos

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

VinFast lower month-to-month lease costs for its first U.S. patrons to $399, down from $599 per 30 days. American rivals like Tesla slashed costs to draw extra clients and drive gross sales, whereas Lucid forecast lower-than-expected 2023 manufacturing after orders dropped.

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

“I feel everybody agrees that the entire business or the entire world is shifting from inside combustion engine to EVs,” CEO Le Thi Thu Thuy mentioned on CNBC’s “Squawk Field Asia” on Tuesday.

“And if you happen to take that view, and if you happen to have a look at the laws in all totally different international locations and and picture what number of electrical autos must be on the street within the coming years, within the coming decade, there’s quite a lot of room for lots of gamers out there,” mentioned Le.

We won't cut corners in developing our products, says Vietnamese EV maker

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

“We nonetheless have loads to show. It is loads forward of us,” Le mentioned.

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

VinFast automobiles are additionally at the moment ineligible for the $7,500 tax credit score within the U.S. as a result of they don’t seem to be made within the U.S., however are made in Vietnam — which is able to impression their U.S. gross sales.

“After all, in the long term, we are also pushing for the crops in North Carolina and to ensure that sooner or later, our autos can be certified for tax advantages underneath the IRA,” mentioned Le.

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

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

“For us, it isn’t about elevating monies but it surely’s loads about making the corporate extra worldwide and different company functions and the market has been difficult as ,” mentioned Le.

Vietnam's VinFast EV brand is new, unknown, and taking on the U.S.

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