VinFast Market Penetration:

Disrupting U.S. EV market with

Asian-inspired cars
Business Strategy Write-up
 2

Table of Contents
EXECUTIVE SUMMARY .............................................................................3
KEY TERMS ...................................................................................................3
I. BACKGROUND INFORMATION ........................................................4
II. TARGET CUSTOMER...........................................................................5
III. OVERALL PENETRATION PLAN.......................................................6
IV. DISCLAIMER.........................................................................................6
V. EXECUTION PLAN ...............................................................................7
1. Branding 7
2. Product Positioning 8
3. Distribution and logistics 9
4. Customer experience (CX) 11
5. Promotion and Sales 14
6. Logistics 16
VI. RISK MANAGEMENT ....................................................................... 17
1. Macro risks 17
2. Industry risks 17
3. Firm risks 18
REFERENCES ............................................................................................. 19
 3

EXECUTIVE SUMMARY
Global electric EV market has shown significant growth in the past decades as a result of rising
concerns for the environment. While the U.S. EV market is lagging behind other major regions
like Europe and China, the U.S. market size is significantly larger, posing numerous opportunities
for new market players. An Asian-inspired VinFast must adopt a wise market penetration plan to
realize its objective of capturing at least 1% market share in this battleground. This report will first
analyze the market environment to conclude potential sources of growth for VinFast. Then, a
comprehensive of six strategies encompassing six business aspects will be proposed to tackle the
challenges.

The overall four-year penetration plan will be divided into two major phases: the first two years
from 2022 to 2023, or the First Phase, and the last two years from 2024 to 2025, or the Second
Phase. VinFast is recommended to choose Asian Americans as a target customer group in the First
Phase before expanding to wider U.S. people in the Second Phase. The rationale behind this
strategic move is that as a Asian brand, VinFast will acquire a better understanding of Asian-
originated people as compared with White Americans. Focusing on a smaller target group in the
early stage allows the Company to optimize resources and take some time to grasp U.S. local
cultures.

The Company’s branding strategy aims to position VinFast as a premium Asian-styled EV

brand that breaks through boundaries to bring people closer together, in the safest and most
convenient way. Promotion channels will accordingly display the brand story and follow target
customers on various platforms such as streaming services and social media. Furthermore, hub-
and-spoke distribution strategy will be applied to optimize customer experience and cut down on
operations costs. Customer experience is leveraged to a whole new level with O2O journey,
integrated with Asian-Western cultures and exclusive after-sales services. Comprehensive
partnerships in multi sector areas such banking, media, logistics, etc. will give the Company higher
chances of winning this competitive game.

KEY TERMS

Term Definition
The Company VinFast company
EV Electric Vehicles
The First Phase The first phase we propose in the penetration plan, from 2022 to
2023
The Second Phase The second phase we propose in the penetration plan, from 2024
to 2025
AA The target customer: Asian Americans
VA Vietnamese Americans
CX Customer Experience
 4

U.S. EV MARKET
Global EV market
The global EV market is witnessing significant growth in the past decades. It is estimated
to reach a value of $725.14 bil by 2026, registering a compound annual growth rate of around
29% over the next ten years (Deloitte, 2020). Major regions like Europe, China, and the U.S. are
actively promoting the adoption of EV to combat climate change and pollution. Despite
COVID’s impacts on total EV sales, the downturn is expected to be short-term.

U.S. EV market
After an encouraging start in 2019, the U.S. EV market started to slow down as the
COVID pandemic took a toll on demand. However, the U.S. remains a promising land for any
automaker wanting to put a name on the global EV map. By 2025, EV sales in the U.S. is
projected to reach 6.9 mil units, comparatively larger than 6.3 mil forecast units in Europe
(Statista, 2020). Another reason that makes the U.S. an ideal place to penetrate into the global
EV market is due to significant government subsidies and state incentives for EV automakers.

Sports Utility Vehicles

In the global EV market, the passenger car segment is expected to register a value of
$2,109 mil by 2025 (Statista, 2020). In 2019, it contributed nearly 70% in the global EV sales
(Statista, 2019). The demand for both the traditional ICE and EV SUV segment in passenger cars
has been increasing from 2016. Statista (2019) concludes that in the first half of 2019, fuel-
powered SUVs captured the highest sales share of about 37.8% in the global passenger car
segment market; however, electric SUVs only contributed up to 3% among these sales. An
analysis by The Guardian (2019) found out that SUVs were the second largest contributor to the
increase in global carbon emissions from 2010 to 2018. These numbers clearly displayed an
untapped potential growth in developing EV SUVs.
In conclusion, successful penetration into the U.S. EV market will bring about numerous
opportunities to expand to the wider world. The primary source of growth for the Company is to
convert ICE SUVs into EV SUVs.
BACKGROUND INFORMATION
Vingroup and VinFast
Vingroup is the largest conglomerate in Vietnam in terms of market capitalization
(VietnamCredit, 2021). They operate in three major areas, namely real estate, industrial and
technology, and services. Having been the leading corporate in Vietnam and Southeast Asia for
more than 28 years, Vingroup has diverse experience in customer service, business management
and market penetration. These experiences will serve as a strong foundation for its subsidiary
VinFast to penetrate into the high-demanding and competitive U.S. market.

Established in 2017 as an automotive start-up, VinFast has quickly risen to become a popular
car brand in the domestic market. It might have yet to reflect VinFast’s capability when expanding
to a foreign playground, but it evidently shows the Company’s hands-on experience in competing
in this automobile industry.

By 2022, VinFast plans to penetrate the US, Canada, France, Germany, and Netherlands
markets. Among those, the US market alone is an essential location where its success can
contribute greatly to the overall progress of VinFast going global. The Company has chosen the
two SUV EV models, e35 and e36, as its first representatives of the product lineup in the US
market. The former is a fully electric five-seater mid-size SUV while the latter is a full-size seven-
seater SUV model. Both models are expected to lie in the mid-price range of the EV market.
 5

Strengths
Despite being a new market-entrant, VinFast can utilize a lot of core competencies from its
mother company Vingroup, from financial stability, senior and experienced human resources to
well-developed market research and customer service strategy. More importantly, the Company is
confident to possess 2 EV SUV models that offer competitive price and premium quality. Specific
prices of the two models have yet to be disclosed; however, the price range for the four-seater e35
and seven-seater e36 is estimated within $40,000 to $50,000 and $55,000 to $70,000 respectively.
The price is achieved by benchmarking VinFast EV models with its equivalent competitors,
including the Tesla Model Y, Volkswagen ID.4, Ford Mustang Mach-E, Audi etron, etc. (White,
2021).

Weaknesses
A newcomer like VinFast will definitely face many disadvantages. The Company’s brand
awareness is rather low. Also, financial capability is another big challenge. Understanding of U.S.
local cultures would be limited to some extent compared with domestic automakers.

Opportunities
However, opportunities are countless if VinFast is able to seize the moment. If the Company
can successfully raise an initial public offering of $60 bil as expected by 2022, they will have
higher chances of winning this game. Eventually, VinFast’s success in the U.S. automobile
industry will give Vingroup a toehold in other segments outside auto, putting Vietnam on the
global map.

Threats
The U.S. auto market is already a red ocean with numerous players. The Company will have
to participate in a head-on competition against the well-established firms including BMW,
Volkswagen, Tesla, etc. Furthermore, the fluctuation of COVID-19 situation in this country may
also slow down the supply chain.
 6

TARGET CUSTOMER
Asian American
The Americans are known to have a love affair with cars. There is no surprise when EV
ownership among the native Americans is relatively high at 79% (Ricardo Strategic Consulting,
2020). However, it is astounding to find out that the number among Asian Americans is rather
lower at 6%. This poses another wonderful source of growth for the Company to target at Asian
Americans in the First Phase. The 2020 United States Census reported there was approximately
19.9 million AA in 2020, and they are the fastest-growing ethnic group in the U.S.
Specific ethnic group targeting
To best capture the highest market share in a competitive EV market in the U.S., the Company
is suggested to start with a small specific customer group in the First Phase before expanding to a
wider, more diverse group in the Second Phase. In the starting year 2022, the Company should
focus on Southeast Asian people in the U.S., including the Vietnamese, Filipino and Indonesian
who rank among the highest median household income, from $72,000 to $100,000 (American
Community Survey, 2019). By 2023, the Company should tap into a wider AA market, targeting
Chinese, Taiwanese, Indian and Japanese people residing in America. Their annual median
household income is comparatively higher than other ethnic groups, starting from $85,000 to
$126,000. From 2023 onwards, the Company should have accumulated thorough understanding of
the local U.S. people and expanded to them until the end of the four-year plan.
Customer persona
Potential VinFast buyers are called the Ascenders. Whichever ethnic group they belong to, the
Ascenders will share the same following characteristics. They are middle-aged men, aged 28 to
38 years old, living in an urban setting in the West and Northeast American. The rationale behind
these two strategic regions is that more than 50% of AA are residing in the West and Northeast
Coast of America. The Ascenders have a family of a wife and at least one child of 6. They may
live with their parents, making a typical multigenerational Asian family. However, this might not
be the case for native U.S. people.
Demographic
The Ascenders are standing in their mid-career and enjoying their career path as professional,
scientific or technical people. They may own a business or a start-up and have to drive at least 90
miles miles from home to their workplace every day. Their annual median household income
hovers around $50,000 to $80,000.
Car driving behaviors
The Ascenders are current ICE users, and they are aware of environmental issues caused by
this car. That is why they are planning to adopt a new EV for long-term cost-efficiency. Besides
daily trips to work, the Ascenders enjoy road trips with family and friends, and usually have a
long-distance trip of around 200 to 400 miles every one or two months. They spend weekends
taking their families to recreation parks like Disneyland or cultural festivals. They are family-
oriented and love spending time for families.
 7

Media behaviors
The Ascenders are known to be heavy media users as they were born in the age of the internet.
They spend around 2 to 4 hours on different types of social media and streaming services. Their
favorite streaming channels are Netflix, Hulu and Youtube TV, which will serve as good marketing
channels for VinFast later on. Although they do not use TikTok as frequently as younger
generations, they do enjoy creative content on this short-video platform.

OVERALL PENETRATION PLAN

First Phase Second Phase

Timeline
2022 2023 2024 2025

Key objectives To reach 60,000 EV sales end of 2023 To reach 150,000 EV sales end of 2025

Target customer Asian Americans U.S. natives

Regions Western and Northeastern American

. State-wide brand awareness

. Flagship showrooms openings
Major focus . Charging stations and workshops openings . After-sales services enhancement . Expansion to dealerships
. Comprehensive and unique customer
experience

KEY ASSUMPTIONS
The following proposal is an ambitious execution plan that will require significantly large
financial capital. The Company’s plan to raise capital through an estimated $60 billion initial
public offering (IPO) in the U.S. is a smart decision to improve its finance capability. However,
this IPO plan was delayed. In sketching out this execution plan, it is assumed that VinFast has
successfully completed U.S. listing at no less than the estimated $60 billion by the end of 2022, so
that the Company has enough financial resources to implement the following proposal.
Vaccination rate in the U.S. currently stands at 67% (University of Oxford, 2021). It is assumed
that this vaccination rate will rapidly increase, so that most outdoor activities, social gatherings,
and tourism are allowed to operate under safe conditions. It is also expected that the new COVID
waves in the next few years will die down and have less severe impacts on global supply chain
and business’s production and manufacturing process.
 8

EXECUTION PLAN
1. Branding
The Company must deploy a differentiation strategy to tell its brand story. It should precisely
reflect current societal post-COVID context, deeply relate to U.S. customers, and genuinely uphold
the brand’s core values. By analyzing such three fundamental aspects, the Company could
successfully convey their brand message and image to target customers.
1.1. Current societal context
Firstly, it is apparent that the turbulent COVID pandemic has made people become
disconnected to each other, and also to the outside world. Social distancing and lockdown
measures have all made people spend more time at home and less time travelling and hanging out.
It is estimated that the Americans spend less than 8% of their time outdoors in 2020 (Buchholz,
2020). 55% reported being more stressed due to isolation, loneliness and prolonged in-door stay
(Farr, 2020).
1.2. Customer insights
Secondly, U.S. people are known to be avid travelers. In fact, KPMG Automotive report
(2020) reveals that the Americans racked up an astounding 3 trillion miles behind wheels, which
is equivalent to 337 round trips from Earth to Pluto! Suddenly, their driving habits were
disrupted by COVID-19. Cars were set aside in home garages, and road trips oddly became a
wildest dream. As restriction measures are being lifted, they are longing for family trips, friends,
and relative reunions more than ever. Erie Insurance survey (2020) reveals that 51.2% of U.S.
people are planning on taking at least one road trip in their own vehicle, and the trips are mostly
for family and friends visit.
1.3. VinFast’s core values
Given current social situations, the Company could be the best-fit EV brand if they can
convey a socially and culturally relatable brand mission to the customers: “to break through
boundaries to bring people closer together, in the safest and most convenient way”. Indeed,
VinFast’s vision is to “create a world without boundaries”. More importantly, as an Asian-
inspired EV brand, VinFast aims to promote collectivism in Asian philosophy to its customers
who have long suffered from disconnection and isolation during the pandemic.
The Company’s brand identity must show consistency and alliance with the brand story.
Specifically, the Company’s V-shaped logo represents an infinity to which VinFast is striving
towards, stepping beyond limits and beyond expectations. VinFast users will then feel inspired to
break through physical distance and invisible fears, to achieve their dreams and desires. Whether
 9

it be a private family road trip or a friend reunion, VinFast is the perfect choice to take them to
the desired place, in the safest and most convenient way. “Get Americans back on road” could be
the tagline to emphasize the Company’s story in this new normal.
1.4. Engaging Asian American
In the First Phase, the Company should engage AA by drawing a clear connection between
the target customer and their Asian origins. AA might have fewer chances of visiting their
homeland due to COVID, so VinFast with its Asian-inspired values could bridge the gap.

2. Product Positioning
The U.S. EV market is already a red ocean with numerous domestic and foreign players;
therefore, the Company should deploy a differentiation product positioning strategy to stand out
from the crowd.
2.1 Product
In terms of product, the Company offers two EV SUV models tailor-made to specific
customer groups. Four-seater VinFast e35 is a perfect fit for small families who travel shorter
distances, drive cars for daily use and have lower budgets. Seven-seater VinFast e36 is of greater
value to larger families who enjoy long-distance road trips. More specifically, Nielsen (2012)
reveals that 28% AA have multi-generations living under one roof, meaning that a seven-seater
VinFast e36 could perfectly cater for their needs.
2.2 Price
By introducing the e35 and e36 as the first EV entrants to the market, Vinfast marks its first
impression as a middle range EV brand. While the VF e35 can be comparable with the famous
Model Y from Tesla or the 2021 Audi e-tron in terms of specs and price range, the model e36
turns out to be a fit in a category of mid-price electric seven-seater full-size SUV that not many
competitors are recorded. This advantage provides a significant opportunity for VinFast to
promote its position as a perfect fit for the budget and needs of the U.S. customers, and
consequently be an outstanding choice within its category.
2.3 Place
Another perspective of the product positioning strategy is an appropriate geographical
showcasing strategy to promote the image of VinFast. Since VinFast places itself as a high-end
EV brand, choosing California as the first destination is an optimal option. For the First Phase of
the strategy which emphasizes the e35 and e36 models, VinFast should focus on its network of
service centers, galleries, showrooms, and other visual identities in the urban areas to effectively
attach the image of VinFast with a modern and sustainable urban lifestyle. However, in the next
phase of the strategy in which VinFast desires to widen its product's range to be accessible to
more customers, launching more showrooms and service hubs in the sub-urban areas is crucial to
resonate with its positioning strategy as a high-end car brand for everyone.
 10

2.4 Promotion
For the customers, specifically Asian Americans, who embrace optimization and quality for
their family-oriented lifestyle, VinFast can best support them with its corresponding advantages.
With these two models as the first representatives of the brand into the market, VinFast should
define itself as a high-end automotive brand aiming for the target customers with a multipurpose
daily use, inclusive of their family-oriented lifestyle. Besides its luxurious and spacious design,
VinFast should continuously promote its dedication to serve this group of customers by
providing more relevant experiences.
For the customers who treasure their family, safety and environmental sustainability are the
key concerns they have for the electric vehicles. Therefore, besides its commitment to support
the environment, VinFast should actively promote its battery leasing program as a unique selling
point. By guaranteeing the efficiency and safety of the batteries, VinFast can be as successful as
other market leaders in gaining the people’s trust in its products. It is expected that this service
should be available at the entrant phase of 2022 to be promoted as a USP of these VF models. On
the other hand, in the new post-COVID era, these customers are more likely to travel more with
their family using their vehicles. Having understood this preference, the Company can emphasize
its promotion as a unique selling point by providing them with various traveling offers for its
buyers so as to raise the customers’ interest in these products.

3. Distribution and logistics

3.1 West and Northeast Coast
Western and Northeastern American are two major regions the Company should focus on.
These two are the nation’s most economically developed, densely populated and culturally
diverse areas. (high-income cities in these regions). Furthermore, the West and Northeast Coast
are home to the largest AA population in the U.S., with $9.8 mil and $4.2 mil people respectively
(Budiman & Ruiz, 2020). In 2015, the buying power of AA in the West was over $368 bil,
representing 45% of total U.S. AA buying power (Nielsen, 2016). Most importantly, Western
and Northeastern areas are prominent for the EV market since four out of ten U.S. states with the
highest EV registrations in 2018 came from these regions. These two regions are considered an
ideal steppingstone that the Company must first quickly acquire market share before expanding
to a wider playground.
California, a wealthy state situated in the West, is a haven for EVs due to the state’s tax
rebate and EV registration. Despite having the highest number of EV registrations in the U.S.,
California's EV population still comprises only approximately 1.7% of the state’s overall vehicle
registrations, revealing many untapped potentials for a new player like VinFast (Ricardo
Strategic Consulting Report, 2020). To best capture AA in the First Phase, the Company is
suggested to showcase its presence in major cities in California, namely San Francisco, Los
Angeles, and California City. Similarly, New York, New Jersey and Pennsylvania are three
major metropolitan areas in the Northeast Coast the Company should target at.
 11

3.2 Hub-and-spoke strategy

The hub-spoke distribution paradigm is predicted to be the “future of car retailing” (Kirwan,
2018). In this sense, mega flagship showrooms situated in strategic locations will display a
comprehensive product range alongside lavish customer experience while “spoke” workshops
and garages focus solely on after-sales and spares parts service.
3.2.1. Flagship showrooms
Since the Company has decided to sell directly to customers, flagship showrooms are such
important touchpoints. The Company is recommended to establish at least one mega flagship
showrooms in each major city, specifically, San Francisco, Los Angeles, and California City for
the Western and New York, New Jersey and Pennsylvania for the Northeastern. The stores
should include a 3S facility, combining a combo of showroom, service center and spare parts
workshop to bring about comprehensive and unique customer experience.
These imposing central “hubs” will display all the latest and newest product line up,
including the premium mid-size SUV VinFast e35 and the full-size SUV VinFast e36. The
flagship stores will serve as a one-stop destination where customers can experience a full
package of services, from car purchasing, car maintenance to activity engagement with the
brand. Details of how the showrooms should be designed to best satisfy the customers will be
discussed in the Customer experience section.
Leading auto brands like Tesla Motors and MG Motor have already adopted this strategy.
Tesla’s 65,000sqm ft flagship located on the famed Van Ness Avenue in California is a typical
example.
3.2.2. “Spoke” service center and workshops
Car service and maintenance is one out of five key factors influencing customers’ purchase
decisions, and the situation is even more challenging for EV cars (Ricardo Strategic Consulting
Report, 2020). Hence, the Company must ensure that customers could find the firm's service
centers wherever they go. It is suggested that the Company build a wide network of auto repair
workshops and service centers surrounding the central hubs and across other smaller states.
Essentially, these “spoke” workshops focus entirely on maintenance and spare parts service,
which will consume less expense and therefore allows VinFast to quickly build up thousands of
spokes. Eventually, customers will feel secure when they see the Company’s V-shaped logo
across the regions wherever they travel to.
It should also be noted that no matter how fast the Company aims to construct these “spoke”
service centers and garages, it could not keep up with the customers’ increasing demand for auto
care, repair and maintenance. Hence, alongside with opening VinFast-owned workshops,
partnering with trusted auto care centers would be a smart choice. Firestone Complete Auto Care
is a potential partner since they have been operating on nearly 2,200 tire and vehicle service
centers all over the U.S (Bridgestone Americas, 2021).
 12

3.3 Third-party charging stations

EV buyers are also concerned about where to charge their EVs if they were to buy one. The
range limitation of all EV brands in general raises great concerns because American families
routinely drive 300+ mile round-trips and even longer for inter-city travel. Therefore, a dense
network of charging stations is another important aspect the Company must invest in. It is crucial
that the Company quickly establish long-term partnerships with independent third-party charging
firms like Electrify America and ChargePoints. Electrify America is a reputable charging
provider with more than 500 charging locations and over 2,200 individual charging units across
the country (Electrify America, n.d.). Strategic cooperation with these firms will allow VinFast
to speedily enhance customers’ trust and increase its presence state-wide.
3.4 Battery plants and EV manufacturers
Upon choosing suitable locations for EV battery plants, the Company should consider the
two following criteria: close proximity to the showrooms and tax exemption from local
authorities. Close proximity among plants and factories will help increase on-time delivery rate
and optimize production time. Many U.S. states provide tax rebates as incentive to encourage EV
automakers, therefore, VinFast should not miss this opportunity. Detroit is one such area since
The Michigan Department of Environment, Great Lakes, and Energy (EGLE) offers grants and
tax exemption for automakers up to $70,000 (U.S. Department of Energy, n.d.)
Besides the American-based supply chain, the Company also has several battery plants in Ha
Tinh and Hai Phong Province of Vietnam.
3.5 Expansion to dealerships in the long term
The Company aims to pursue the D2C business model in the first two phases of the 4-year
plan. However, from 2025 onwards, VinFast should ramp up its production capacity in order to
enter large U.S. car dealerships, such as CarMax and AutoNation. These car dealers have a wide
network of more than 100 locations nation-wide and a large customer database given their long
history of operations (Levin, 2019). Thus, accessibility to these trusted dealers would open the
door for VinFast to reach out to a wider U.S. market. Expansion to local dealerships would bring
more benefits to the Company in the long term since it would alleviate the financial burden of
launching too many costly showrooms and garages.

4. Customer experience
Customer experience (CX) is an important aspect that could make or break the business.
Indeed, comprehensive, and unique CX could help boost sales and increase brand loyalty. To
leverage car purchase journey, the Company must understand current popular pain points before
coming up with suitable solutions.

4.1. Customer pain points

Firstly, information fragmentation is one of the most painful struggles among car buyers. 39%
car owners complain that the excess of information available on various websites, forums, social
 13

media, etc. made them feel overwhelmed and difficult to choose the most suitable one for
themselves. Secondly, price haggling is an unpleasant experience for most car buyers since they
feel it is “unfair to sell the same car at two different prices” based on one’s negotiation skills
(Gettacar, 2020). Lastly, car buyers tend to lose connections and attention from the brand post-
sales. This is an awful mistake in CX design since 53% of customers evaluated after-sales services
as the “most influential” stage (Harald et al., 2019).

4.2. Leverage VinFast car purchase journey

It is suggested the Company deploy the two following strategies to deliver a comprehensive
and unique customer experience, namely transforming towards an O2O journey and rewarding
exclusive after-sales services.

4.2.1. O2O (Online to Offline) customer journey

It should be noted that the Company’s target customers are the tech-savvy and high-demanding
Ascenders. Technology is deeply embedded in almost every aspect of their lives, and their
relationship with cars is no exception. An inclusive online to offline (O2O) journey would be the
key solution to build up brand presence in customers’ minds.

• Mobile app Fasters

A mobile app called Fasters would be an effective online touchpoint between customers
and the brand, in which they can track all information about their cars and contact service center
from anywhere, at any time. Besides this simple data storage function, the mobile app allows
VinFast customers to book maintenance and repair services in the easiest and most convenient
way. Imagine a busy businessman needs to have his car repaired today so that he can drive to the
meeting tomorrow morning. All he needs to do is to book an appointment with VinFast service
center through the app, drive his car to the garage or have his car picked up from home, and then
everything is done! Last but not least, the Company can actively engage with its customers and
listen to their feedback by creating a social media platform within the VinFast app. The more
engaged customers become, the more likely they are to stay and spread word of mouth to their
friends.

• Asian-styled showrooms and services

Offline touchpoints would mostly take place in flagship showrooms and “spoke”
workshops. The Company is recommended to design a meticulously curated experience for their
esteemed customers in the showrooms by integrating Asian-styled spirits into Western vibes.

Firstly, flagship stores should welcome customers with a luxury and tech-driven
environment. State-of-the-art facilities such as virtual and augmented reality (VR/AR) should be
applied in addition to usual physical test driving. Secondly, as a car brand proudly originated in
Vietnam and Asia at large, the Company should consider using Asian-inspired art masterpieces as
decorations. An artwork made by Asian artists, featuring Asian famous landscapes, would likely to
draw the attention of AA. Thirdly, a signature coffee-smelling aroma to be found nowhere else but
VinFast showrooms would enrich customers’ impression. Coffee is favored by both Western and
 14

Asian people. It is also Vietnam’s most exported staples; hence, the Company should take
advantage of this strength.

Last but not least, human beings, that is the salespeople and staff, are the Company’s most
important asset that brings genuine connection to customers. It is recommended that Asian and
Western human resources are employed on a balanced ratio to ensure an integrated experience of
both cultures. Asian people are commonly known for their accommodating and energetic style of
doing services. This attitude should be applied consistently among all VinFast front-line and back-
line employees.

4.2.2. Exclusive after-sales services

After-sales service plays an important role not only in improving brand loyalty but also in
boosting automaker’s sales revenue (Harald et al., 2019; Oliver Wyman, 2020). In 2020, the after-
sales market accounts for more than 50% of many automakers’ profits (Oliver Wyman, 2020). One
of the best ways to offer exclusive after-sales service and retain the loyal connection between
VinFast and car’s owners is the membership packages. The Company should adopt the following
user-centric approaches to leverage customer experience post-sales.

The first approach is to organize annual networking events for VinFast buyers, who are talented
businesspeople and professionals. These events are not only the occasion for VinFast’s owner to
share their technology passion and car driving experience with other people but also where they
can widen their connections, which benefits their career.

The second approach is to reward customers with vouchers and discounts to recreation and
entertainment destinations because tourism is expected to recover soon thanks to widespread
vaccination. Erie Insurance (2020) claims that over 50% of U.S. people are planning for their
family trips in the next few years after months of staying at home, so the Company must seize this
chance. Disneyland Park could be an ideal place for families to travel. Travel and long-distance
journeys are great motivations for customers to use VinFast cars, encouraging their connections
with the brand via promotions and family activities.

Moreover, with the diverse ecosystem within Vingroup and strategic partnerships, VinFast
should offer extra benefits for cars’ owners, including healthcare, tourism, and education. These
extras are beneficial for the whole family of the cars’ owner, strengthening the internal connection
between family members, a key value that Asian American are always upholding.

4.3. Improvements on key touchpoints

4.3.1. Credible information hub

To minimize fragmented online information, the Company should gather its official
information product release on a few trusted websites. KPMG report on automotives (2019)
reveals that 78% of car buyers visit third-party websites such as Autotrader or TrueCar to research
car information to avoid bias. Therefore, VinFast is suggested to collaborate with these retailers to
build a wider online presence, outside the company’s website. Moreover, bringing VinFast to the
U.S.’s largest e-commerce site Amazon would be a great idea to gain wider exposure to the masses
given that Amazon is the among the top 10 most visited retail websites in the U.S. (Statista, 2020).
 15

4.3.2. Transparent pricing model with beneficial advantages for customers

Pricing policy should be clearly stated on the Company’s official media channels. A clear
pricing frame allows customers to select the best fit car model for their needs and budget.
Furthermore, it would help the comparison between VinFast models and between VinFast and
other brands become more logical. With a supportive battery leasing and financial aid program,
the Company can offer a competitive price for customers and eliminate the financial barriers when
switching from an Internal Combustion Engine car to an electric car.

4.3.3. Trade-in policy

Resale pricing model is an element that customers consider when choosing a car when 71% of
US people claim they are becoming more price-sensitive (KPMG, 2019). The resale price of a car
would affect their decision-making process. Thus, VinFast should consider offering a reasonable
trade-in policy for customers after a clear resale policy is truly important in finalizing the customer
experience, enabling customers to preserve the best conditions of the car for a good resale price.

5. Promotion and Sales

While other objectives of the strategy are to establish a strong foundation for VinFast to
thrive in the U.S. market, promotion and sales play a crucial role in the direct interaction with the
customers. By aiming for the Asian American ethnic segment as its initial target customers,
VinFast must develop a Asian-styled marketing and advertising strategy that best motivates them
in purchasing its products and services.
5.1. Advertising channels
Firstly, choosing the right channels for marketing and advertisements is critical for cost and
reachability optimization. Since the Asian Americans are known to be the most active
technology adopters with the highest time spent on the internet, concentrating on online
marketing is the most optimal choice in the First Phase. On the other hand, offline experiences
also contribute greatly to promoting brand awareness and fulfilling the customer journey.
However, while the digital marketing campaign can run immediately and smoothly throughout
the 4-year-plan, several offline marketing infrastructures take time to enforce. Meanwhile, the
continuous waves of COVID-19 prevent people from going out, hence leading to a sharp decline
of the U.S. 's vehicle miles traveled (KPMG, 2020). The Company can utilize this phenomenon
by pushing its digital marketing strategy in the first year while concentrating on enforcing other
necessary infrastructures for the Second Phase when people will have been more willing to go
out.
5.1.1. Online marketing approach
Particularly, television and social media platforms will be VinFast’s two dominant channels
for marketing in the First Phase and remain stable in the Second Phase. In the context of
COVID-19, these two platforms experienced an explosion of daily access (Molla, 2021). By
having experiences in creating Asian-styled marketing strategies, VinFast should not face any
significant disadvantages influencing these audiences. For social media marketing, typical social
 16

platforms can be taken advantage of to promote VinFast’s images: Facebook and other third
websites for product advertisements, YouTube for insightful content of VinFast products, and
Tweeter, Instagram and Tiktok for more daily trendy updates. Among those proposed platforms,
an emphasis on Tiktok and Tweeter as the main means of advertising is crucial to promote the
image of VinFast effectively and economically. Besides, while the world is experiencing a rapid
shift to online platforms, television is still popular among Americans, especially during the
COVID-19 (Hubbard, 2021). Therefore, bringing VinFast product advertisements to different
popular TV channels, especially the favorite ones among the Asian American group, can provide
a similar outcome compared to online platforms, in terms of effectiveness.
5.1.2. Offline marketing approach
For an offline marketing approach, investing on brand advertisement in popular locations is an
essential factor in our strategy besides concentration on the Company’s showrooms, galleries, and
banners. By successfully bringing the Company’s products to famous Auto Shows, VinFast can
proactively highlight its values and position among a lineup of many famous giants in the field.
These shows include but are not limited to the North American International Auto Show (NAIAS),
Chicago (CAS), Monterey (MAS), Los Angeles (LAAS). These successes not only benefit VinFast
in the U.S. market but also on a global scale. Besides, popular gathering events among the
Americans is also an ideal location for showcasing the Company’s products and technologies as
these events are expected to experience a rapid recovery rate in the post-COVID-19 due to a high
demand of travelling and entertainment.
5.2. Advertising content
Secondly, paying attention to finer details of the Company’s marketing strategy can have a
huge impact in influencing its target audiences.
5.2.1. Language
The Company’s In-language contents should be available to gain the attention of these
customers. Research shows the majority of Asian Americans use their mother tongue at home,
implying their preference of language (Nielsen, 2012). Therefore, by paying attention to this detail,
VinFast related contents can reach a higher connection with the customers, hence achieving its
target of gaining the crowd’s attention and a good first impression of a well-thought brand. The
final purpose is to create a key touchpoint and attract the viewers to our key messages, which
consequently enhance the proportion of customers from being interested to being willing to
purchase our products.
5.2.2. Content
As the Company chose the Asian Americans to be its initial target customers, concentrating to
Asian-styled content and philosophies is crucial to resonate with them. It is noticeable that a
significant part of the Asian American group expresses their embracement of a family-oriented
lifestyle (Nielsen, 2012). Furthermore, they also show their commitment to supporting the
environment by purchasing electric vehicles and other services, which is also a practical way to
support their family’s healthy lifestyle (Nielsen, 2013). By utilizing the messages embracing
 17

family-oriented and sustainable values, VinFast can both consistently position itself as an eco-
friendly and well-thought company.
On the other hand, understanding the customers’ preferences is the key to success that the
Company needs to pay attention to. In this campaign, influencer marketing can have a huge impact
on the impression of the customers despite being only a small detail. VinFast once invited David
Beckham and other popular Vietnamese influencers to Paris Motor Show 2018, which led to a
phenomenal launching event. The same technique can be applied for this First Phase to gain the
crowd’s attention.
For further details of how these platforms can be utilized, VinFast can work with popular
marketing agencies, such as Ogilvy and AKQA, to bring out not only creative and emotional
content, but also other long-term strategies. Such strategies should be emphasized from the
beginning of the go-to-market strategy and adaptively modified to fit the customer preferences.
5.3. Promotion
5.3.1. Pre-order promotions
Reality proves this strategy to be effective in most cases by providing the customers more
motivation to purchase the company’s product. Research shows more US customers are concerned
about cost-effectiveness, especially after the COVID-19, implying their desire for promotions and
valuable deals (Charm et al., 2020). Having understood this preference, the Company can offer a
similar discount for pre-ordering customers by integrating extra after sales and entertainment
services that best enhance the customer experience with an attractive after-discount cost. This
strategy will also reduce the rate of one-time purchase, and consequently provide a more active
revenue for the Company.
5.3.2. In-store promotions
Similarly, the same promotions can be offered to the customers visiting the Company’s
showrooms, service centers and stores. This suggestion comes from a behavior that the AAs are
more likely to make instant decisions when visiting the stores. Therefore, by offering valuable in-
store promotions, the Company can effectively convince these customers to try its services, hence
enhancing the overall shopping experience and brand satisfaction.

6. Logistics
Strategic partnership development is crucial for a new market-entrant like VinFast. Given the
fact that the Company’s infrastructure and facilities are under progress, it is suggested that the
Company collaborate with well-established firms to take advantage of their resources and power.
6.1. Banks and financial institutes
In order to optimize the financial process with time-consuming paperwork and complicated
processes, financial partners should be the top priority. These financial partners, who are credible
and understand the local policies, would help the customer utilize their purchase documents and
decrease the car cost with customized promotions and loan programs between VinFast and these
 18

financial partners. Because a car is a valuable product which not all people can afford a one-time
purchase, the need for a loan program is necessary. US Bank and other banks are offering
attractive loan programs for personal and commercial car purchase; therefore, it would be more
convenient for customers to have the integrated program, including automakers and loans from
banks. With these supports, the target customer would partly eliminate the financial concerns and
more willingly choose a better car for their needs.
6.2. Charging station networks
Electrify America and ChargePoints are among the largest public charging providers in the
U.S., with more than 500 charging locations each.
6.3. Auto care providers
While the Company will continue constructing its own garages and workshops, it is
recommended that they partner with large state-wide auto care providers to better serve the
customers. Firestone is one such prominent partner with nearly 2,200 tire and vehicle service
centers all over the U.S.
6.4. Travel agency and recreation centers
When customers plan to buy a car, it is ideal to give them a sound reason to use the car. Thanks
to widespread vaccination, tourism is starting to recover. This is the reason to persuade U.S.
consumers to get back on the road, travel with family in their private cars. Partnering with popular
tourism destinations like Disneyland Park will be a win-win opportunity for both sides.

RISK MANAGEMENT
All six proposed solutions are likely to help VinFast launch a successful market penetration
plan. However, risks are inevitable and unpredictable. Therefore, the Company must be well-
prepared for it.
Macro risks
Should a new COVID wave to occur, the Company must take proactive steps against it. First
and foremost, all human resources must be fully vaccinated to mitigate disease infection within
the company. Should there be any infected case in the factories and showrooms, the severity will
be reduced. Secondly, the Company must comply with safety procedures throughout its operations,
which not only protect the Company itself but also increase customers’ trust. Furthermore, post-
COVID’s impacts may cause disrupted global supply chains, leading to delayed shipments and
deliveries. This is a mutual issue among businesses; therefore, the Company should prepare for
that. Over-promising to customers may result in disappointments, hence, it should be avoided

Industry risks
As a newcomer to an automotive industry with one of the longest timelines of development,
the Company has to compete with various giants in the field, including Tesla, Ford, Volkswagen,
etc. Furthermore, it is even more urgent for VinFast to consider the new automotive startups with
 19

a similar background. They are more likely to become the Company’s direct competitors, most of
which come from Asia where the EV industry has experienced the greatest flourishment.
Therefore, careful investigations on the industry should be conducted to prepare for the new
competitors. Furthermore, promoting the Company’s USPs and a differentiation-based positioning
strategy can help VinFast stand out among other new brands.

Firm risks
As VinFast aims to provide an Asian-inspired service with great dedication and enthusiasm,
there is a risk that its American staff may have difficulties understanding the Company’s spirit or
cannot fully deliver its spirit to the customers. Therefore, we suggest its Head of Human Resources
in the market should be a native person. A native Head of HR can harmonize between VinFast’s
culture and that of the employees, hence perfectly delivering the Company’s spirit to his/her staff.
 20

REFERENCES
Adiutori, R. (2021, March 30). Survey: What Grabs Your Attention During Road Trips? Erie Insurance.
Alternative Fuels Data Center. (n.d.). Michigan Laws and Incentives. Retrieved November 6, 2021, from
https://afdc.energy.gov/laws/all?state=MI
Brandt, F., & Springer, M. (2015). The Next Horizon For Automotive After-Sales. Oliver Wyman.
Bridgestone Americas. (2021, February 5). Bridgestone Announces New Firestone Complete Auto Care
Location [Press release].
Buchholz, K. (2020, April 16). Americans Spend Less Than 8 Percent of Their Time Outdoors. In Statista
– The Statistics Portal. https://www.statista.com/chart/21408/time-americans-spend-indoors-
outdoors/
Budiman, A., & Ruiz, N. G. (2021, April 29). Key facts about Asian Americans, a diverse and growing
population. Pew Research Center. https://www.pewresearch.org/fact-tank/2021/04/29/key-facts-
about-asian-americans/
Charm, T., Coggins, B., Robinson, K., & Wilkie, J. (2020, December 14). The great consumer shift: Ten
charts that show how US shopping behavior is changing. McKinsey & Company.
Electrify America. (n.d.). Electrify America: U.S. EV public charging network. Retrieved January 6,
2021, from https://www.electrifyamerica.com/
Fanderl, H., Matthey, A., Pratsch, S., & Stöber, J. (2019, March 8). Driving the automotive customer
experience toward the age of mobility. McKinsey & Company.
Farr, C. (2020, July 2). More than half of Americans say they’re more stressed than they were before the
Covid-19 pandemic. CNBC. https://www.cnbc.com/2020/07/01/covid-19-pandemic-has-increased-
stress-say-55percent-in-harvard-unc-study.html
Fuels Institute. (2021). EV Consumer Behavior.
Gettacar. (2021, May 18). Top 5 reasons people do not like going to a car dealership.
Hubbard, K. (2021, July 22). Outside of Sleeping, Americans Spend Most of Their Time Watching
Television. U.S. News and World Report. https://www.usnews.com/news/best-states/articles/2021-
07-22/americans-spent-more-time-watching-television-during-covid-19-than-working
J.D. Power. (2020, March 12). 2020 Customer Service Index (CSI) Study [Press release].
https://www.jdpower.com/business/press-releases/2020-customer-service-index-csi-study
 20

Kirwan, J. (2018, October 23). Hub and spoke is “the future” for car retailing in the UK. Motor Trader.
https://www.motortrader.com/motor-trader-news/automotive-news/hub-spoke-future-car-retailing-
uk-23-10-2018
KPMG. (2019). The Future of Automotive Retailing.
KPMG, & Silberg, G. (2020). Automotive’s new reality: Fewer trips, fewer miles, fewer cars? KPMG.
Levin, N. (2019, November 21). 10 Largest Used Car Dealers in the United States. Largest.Org.
https://largest.org/misc/used-car-dealers-usa/
Molla, R. (2021, March 1). How Covid-19 has changed social media habits. Vox.
https://www.vox.com/recode/22295131/social-media-use-pandemic-covid-19-instagram-tiktok
Nielsen. (2012). State of the Asian American Consumer.
Nielsen. (2013). Significant, Sophisticated, and Savvy - The Asian American Consumer 2013 Report.
Nielsen. (2016). Asian-Americans: Culturally Diverse And Expanding Their Footprint.
https://www.nielsen.com/wp-
VietnamCredit. (2021, April 12). Largest companies in Vietnam by market cap in 2020.
https://vietnamcredit.com.vn/news/largest-companies-in-vietnam-by-market-cap-in-2020_14348
White, A. (2021, October 29). 12 Bestselling Electric Vehicles of 2021 (So Far). Car and Driver.
https://www.caranddriver.com/features/g36278968/best-selling-evs-of-2021/