Strategies recommendations for Vinfast

After conducting business analysis on Vinfast, we present strategic recommendations for Vinfast
to excel at the new market, as in the US, and to gain power at the domestic market in Vietnam.
However, these are merely a general description of what our strategies are, in-depth analysis
about said strategies will be presented in the individual assignment where each of our group
members will explain throughout the strategies and how to meet them.

Gain Brand Recognition using multi – media marketing strategies.

For any business that started in a new market, the most important thing is to make the potential
customers know about you. The US market is very well known for being challenging and
honestly quite brutal towards newly formed businesses. To survive, and maybe thrive in this
market, Vinfast needs to establish the brand name first. US customers are not accustomed to
products from Southeast Asia as there are few products that come from this market, as
discouraging as it may sounds, this is actually a very promising opportunity for Vinfast to
establish their brand. To do so, they must invest in marketing through multi – media, multi –
channels.

Expand into niche market segment: Middle class.

In the current market, Vinfast’s competitors such as BMW, Mercedes-Benz, Toyota,… are all
trying to gain the advantage by improving the design of their products towards the first – class,
high – end luxury market where the rich are dominating. However, Vinfast’s aim towards the EV
industry is not just to create a good electric car, but to create an electric car that is affordable to
the majority of people, to encourage a green world philosophy. Therefore, going into the
middle-class market segment will be the best strategy for Vinfast in the first stage.

Establish strong Supply chain infrastructure (distribution channels, battery change, repair
services…)
Tesla has been the leader of the EV industry since birth, and they have open source code for
anyone that wants to produce an EV. In the market, it is not hard to produce a good quality,
good design EV and every car brand has had their own designs that have good quality. One of
the major problems in this industry is the lack of Supply chain. Since EV is still fairly new, car
brands have not perfected their supply chain to produce products. As one of the few new player
in the game, Vinfast is ought to learn and invest in a well performed, widely covered supply
chain through out the market to gain an advantage.

Invest in the research to create higher capacity batteries.

Another major problem in the EV industry is the capacity of batteries. In general, electric cars
cost less than gas powered cars since the price of electric is relatively lower than gas. However,
when comparing the performance, travel length and power, gas powered cars still have the
advantage over EVs. This is also a concern that kept customers from changing into EVs.
Furthermore, the risk of batteries are significantly higher than gas as they are easily explode
upon impact. Investing in research to create a new solution in batteries is not just a good
decision but a game changing move.

Improve product quality and design.

Vinfast has already working with the world – class car designers from Italy, this is one of their
advantages in the industry. However, in the domestic market, Vietnamese people are still
hesitating to choose Vinfast over well known brands such as Toyota and BMW. These
competitors have established their brand in the mind of customers, their quality has been
tested through time and the designs are luxurious and high – end. In Asia, owning a car is not
just for a function of traveling, it is also an act of showing off your wealth as Asians care about
their position upon others. The current quality and design of Vinfast is not fit for this purpose.
You may point out the contradiction in our previous strategy, focusing on the middle – class,
however, it will be an absolute win if you can have a slick design, high quality product while also
be affordable to most.