I.

Introduction
A. Introduction to VinFast
VinFast is a prominent automotive company based in Vietnam, founded in 2017 as a
subsidiary of Vingroup, a leading conglomerate in the country. VinFast entered the automotive
industry with a clear mission to create high-quality vehicles that meet international standards
and cater to the diverse needs of customers. The company has quickly gained recognition for
its commitment to innovation, cutting-edge technology, and sustainability.

VinFast has rapidly established itself as a key player in the automotive market, both
domestically and internationally. The company has a comprehensive product portfolio that
includes electric cars, electric motorbikes, and electric buses, all designed with a focus on
advanced features, performance, and environmental consciousness.

B. Purpose and Scope of the Essay

The purpose of this essay is to conduct a PESTLE analysis of VinFast and examine two
organizational functions, namely marketing and finance, in relation to the identified external
factors. The PESTLE analysis will provide insights into the political, economic, social,
technological, environmental, and legal factors impacting VinFast's operations and strategic
decision-making. By examining the marketing and finance functions, we aim to assess their
alignment with the PESTLE factors and evaluate their importance and impact on VinFast's
overall performance.

Through this essay, we will gain a comprehensive understanding of VinFast's external

environment, its strategic response to these factors, and the role played by marketing and
finance in shaping the company's success. Ultimately, we will provide a future outlook for
VinFast, highlighting key factors that need to be considered to sustain and enhance its
competitive position in the dynamic automotive industry.

II. Marcro- environment

A. Policy and Legal
1. Role of the Government and Regulations

The political landscape and government policies play a crucial role in shaping the business
environment for companies like VinFast. In Vietnam, the government has actively
supported and encouraged the growth of the automotive industry as part of its broader
economic development plans. The government's role includes creating a favorable
regulatory framework, providing financial incentives, and promoting sustainable practices.

One important aspect to consider is the political condition in Vietnam. A stable political
environment is conducive to business operations and investment. VinFast benefits from
the stable political climate in Vietnam, which provides a predictable business environment
and encourages investor confidence (Bui, 2019).

Another relevant factor is the corruption rate in the country. High levels of corruption can
hinder business operations, increase costs, and create uncertainties. However, the
Vietnamese government has been making efforts to combat corruption, which benefits
companies like VinFast by promoting transparency and a level playing field (Le et al.,
2019).

Furthermore, VinFast's alignment with Sustainable Development Goals (SDGs) can bring
advantages. The government in Vietnam has demonstrated its commitment to
sustainability by integrating the SDGs into national development plans. VinFast's focus on
developing environmentally friendly vehicles aligns with the government's sustainability
agenda, enabling the company to leverage government support and attract
environmentally conscious customers (Truong et al., 2020).

On the other hand, certain regulations and policies may pose challenges for VinFast. For
instance, stringent emission standards and safety regulations may require significant
investments in research and development to ensure compliance. Additionally, restrictions
on imports and trade policies can impact VinFast's supply chain and international
expansion plans (Bui, 2019).

2. Impact of Taxation Policies and Government Power

Taxation policies have a significant impact on VinFast's financial performance and

profitability. The government's power to impose taxes and duties on the automotive
industry affects the company's cost structure, pricing strategies, and competitiveness.
Higher tax rates can increase production costs and affect VinFast's ability to offer
competitive pricing, potentially reducing its market share (Nguyen & Tran, 2021).

Moreover, government power in terms of regulations and licensing requirements can

influence VinFast's market entry and expansion plans. Licensing processes and
bureaucracy can create delays and administrative burdens, impacting the company's
ability to quickly penetrate new markets or launch new products (Dang et al., 2020).

In summary, the government's role and regulations significantly impact VinFast. While a
stable political environment and government support provide advantages such as a
predictable business environment and incentives for sustainable practices, challenges may
arise from strict regulations, taxation policies, and bureaucratic processes. VinFast needs
to navigate these political and legal factors effectively to ensure compliance, maintain
competitiveness, and capitalize on government support.
B. Economic factors
1. Economic Conditions and GDP Growth

The economic conditions in a country significantly impact the performance of companies

like VinFast. Vietnam's economic growth and stability create a conducive environment for
automotive businesses. A robust GDP growth rate indicates increased consumer
purchasing power and a growing middle class, which can translate into higher demand for
vehicles (Nguyen et al., 2021).

Vietnam has experienced strong economic growth over the past decade, with a consistent
rise in GDP. This growth provides VinFast with opportunities to expand its customer base
and increase market share. As the economy continues to grow, individuals and businesses
are likely to have more disposable income, potentially driving demand for VinFast's
vehicles (Pham et al., 2020).

However, economic conditions are not without challenges. Economic fluctuations, such as
recessions or financial crises, can impact consumer confidence and purchasing behavior.
During economic downturns, individuals may delay or reduce their vehicle purchases,
affecting VinFast's sales and revenue (Nguyen et al., 2021).

2. Consumer Trends and Potential Customer Incomes

Understanding consumer trends and potential customer incomes is crucial for VinFast's
marketing and sales strategies. Consumer preferences and behavior patterns influence the
demand for vehicles, including the features, design, and price points that consumers
prioritize (Pham et al., 2020).

VinFast must stay abreast of consumer trends, such as the increasing demand for electric
vehicles (EVs) and sustainable transportation solutions. By aligning its product offerings
with these trends, VinFast can position itself as a leader in the evolving automotive market
(Tran et al., 2022).

Potential customer incomes also play a significant role in determining VinFast's target
market and pricing strategies. Understanding income levels helps the company tailor its
product range to different customer segments, offering both affordable options for budget-
conscious buyers and premium models for those with higher purchasing power. This
diversification of offerings allows VinFast to capture a broader market share (Pham et al.,
2020).
However, it's important to note that economic disparities and income inequality may
impact the affordability of vehicles for certain customer segments. VinFast needs to
consider the income distribution patterns and potential affordability challenges to ensure
its products remain accessible to a wide range of customers (Nguyen et al., 2021).

In summary, favorable economic conditions, such as GDP growth and increasing

consumer incomes, provide opportunities for VinFast to expand its customer base and
drive demand. However, economic fluctuations and income inequality pose challenges
that can impact consumer confidence and affordability. By closely monitoring economic
conditions and understanding consumer trends, VinFast can adapt its strategies to
capitalize on opportunities and address potential disadvantages.

C. Social

1. Changes in Shopping Habits and Consumer Priorities

Understanding changes in shopping habits and consumer priorities is essential for VinFast
to adapt its marketing and product strategies. With advancements in technology and the
growth of e-commerce, shopping habits have undergone significant transformations.
Consumers are increasingly turning to online channels for researching and purchasing
vehicles (Huang & Rust, 2020).

VinFast needs to recognize and respond to these changes by enhancing its online
presence, providing a seamless digital experience, and offering online vehicle
customization options. By embracing digital platforms and leveraging data analytics,
VinFast can gain insights into consumer preferences, personalize marketing messages,
and deliver targeted promotions (Müller et al., 2021).

Moreover, consumer priorities have shifted towards sustainability and environmental

consciousness. The demand for electric and hybrid vehicles has been steadily increasing,
driven by concerns over climate change and a desire for eco-friendly transportation
options. VinFast's focus on developing environmentally friendly cars positions the
company well to capture this growing market segment (Truong et al., 2020).

2. Cultural and Social Factors Influencing VinFast

Cultural and social factors significantly influence consumer behavior and acceptance of
automotive brands. VinFast needs to consider these factors to establish strong
connections with its target market. One aspect to consider is the cultural perception of
vehicle ownership. In some cultures, owning a car is seen as a status symbol and a
symbol of personal freedom. VinFast can leverage this cultural perspective to position its
vehicles as desirable and aspirational (Müller et al., 2021).

Additionally, societal trends, such as urbanization and increasing congestion in cities,

impact the type of vehicles consumers prefer. Compact and electric vehicles that offer
fuel efficiency and ease of maneuverability are gaining popularity in urban areas.
VinFast's product lineup should align with these preferences to address the needs of urban
dwellers (Huang & Rust, 2020).

Furthermore, social factors, including brand perception and reputation, play a crucial role
in consumer decision-making. VinFast's brand image, quality, and reliability influence
consumers' willingness to consider and purchase its vehicles. By building a strong brand
reputation through consistent product quality and exceptional customer service, VinFast
can gain a competitive edge (Müller et al., 2021).

In summary, understanding changes in shopping habits, consumer priorities, cultural

perceptions, and social factors is vital for VinFast's marketing and product strategies. By
embracing digital platforms, addressing sustainability concerns, and aligning with
cultural and social preferences, VinFast can effectively cater to consumer needs and
establish a strong brand presence.

D. Technology
1. Technological Trends in the Automotive Industry

The automotive industry is experiencing rapid technological advancements that are

reshaping the way vehicles are designed, manufactured, and marketed. VinFast needs to
stay abreast of these trends to remain competitive and meet evolving customer
expectations. Some key technological trends in the automotive industry include:

a. Electric Vehicles (EVs): The rise of EVs is a significant technological trend in the
industry. Advances in battery technology and charging infrastructure have fueled the
adoption of electric vehicles worldwide. VinFast's focus on developing electric and hybrid
vehicles aligns with this trend and positions the company to cater to the growing market
demand for sustainable transportation solutions (Cabrera et al., 2021).

b. Connected Cars: The integration of connectivity and digital technologies into vehicles
has led to the emergence of connected cars. Connected car features include GPS
navigation, real-time traffic updates, vehicle diagnostics, and remote control
functionalities. VinFast can leverage connected car technologies to enhance customer
experience, gather valuable data for analysis, and provide personalized services (Zhang et
al., 2021).

c. Autonomous Driving: Autonomous driving technologies, such as advanced driver-

assistance systems (ADAS) and self-driving capabilities, are transforming the automotive
industry. While fully autonomous vehicles are still in development, ADAS features like
adaptive cruise control and lane-keeping assist are becoming increasingly common.
VinFast should consider the potential impact of autonomous driving technologies on its
product development and explore partnerships or collaborations in this domain (Cabrera et
al., 2021).
2. Application of Advanced Technology in VinFast's Production and Marketing

VinFast has embraced advanced technology in both its production processes and
marketing strategies. In production, VinFast has invested in state-of-the-art manufacturing
facilities and robotic automation to enhance efficiency and quality control. Advanced
technologies like artificial intelligence (AI) and machine learning enable predictive
maintenance, optimize production workflows, and improve overall operational
performance (Duong et al., 2022).

In marketing, VinFast has leveraged digital platforms and innovative approaches to

engage with customers. The company has employed virtual reality (VR) and augmented
reality (AR) technologies to provide immersive experiences for potential buyers.
Additionally, VinFast has utilized data analytics and customer relationship management
(CRM) systems to personalize marketing messages, target specific customer segments,
and optimize marketing campaigns (Duong et al., 2022).

By integrating advanced technology into its production processes and marketing

strategies, VinFast gains several advantages. These include increased operational
efficiency, improved product quality, enhanced customer engagement, and the ability to
deliver innovative and differentiated offerings in the market (Zhang et al., 2021).

E. Environmental
1. Impact of the Environment and Climate Change on VinFast

The environment and climate change have significant implications for VinFast as an
automotive company. The automotive industry is a major contributor to greenhouse gas
emissions and air pollution, which have adverse effects on the environment and human
health. VinFast needs to consider these impacts and respond proactively to environmental
challenges. Some key areas to analyze include:

a. Greenhouse Gas Emissions: The combustion of fossil fuels in traditional internal

combustion engine vehicles contributes to greenhouse gas emissions, primarily carbon
dioxide (CO2). VinFast should be aware of the environmental impact of its vehicle fleet
and explore strategies to reduce emissions, such as increasing the adoption of electric and
hybrid vehicles (Tran et al., 2021).
 b. Air Pollution: Vehicle emissions also contribute to air pollution, which poses health
risks and environmental degradation. VinFast should prioritize the development of
vehicles with advanced emission control technologies to minimize air pollutant emissions,
including nitrogen oxides (NOx) and particulate matter (PM) (Tran et al., 2021).

2. Development of Environmentally Friendly Cars and VinFast's Direction

Recognizing the importance of sustainable transportation, VinFast has shown a

commitment to developing environmentally friendly cars. The company has made
significant strides in electric vehicle production and aims to become a key player in the
electric vehicle market (Hoang et al., 2022).

VinFast's direction aligns with global trends towards sustainable mobility. By investing in
electric vehicle technology, VinFast can reduce the environmental impact of its vehicles,
including lower emissions and decreased dependence on fossil fuels. Furthermore, the
development of electric vehicles presents opportunities for VinFast to capitalize on
government incentives and regulations that promote the adoption of eco-friendly vehicles
(Hoang et al., 2022).

To ensure the success of its environmentally friendly initiatives, VinFast should also
consider the availability and accessibility of charging infrastructure for electric vehicles.
Collaborating with stakeholders to expand charging infrastructure networks can alleviate
range anxiety and encourage the adoption of electric vehicles (Tran et al., 2021).

By actively developing and promoting environmentally friendly cars, VinFast can

contribute to mitigating the environmental impact of the automotive industry, enhance its
brand image, and appeal to environmentally conscious consumers (Hoang et al., 2022).

III. Examination of Two Organizational Functions

A. Marketing
VinFast's marketing strategy plays a crucial role in its overall success and market positioning.
By analyzing VinFast's marketing strategy and its alignment with the PESTLE factors, as well
as its market analysis and customer approach, we can gain insights into how the company
addresses various external factors and customer needs.

1. VinFast's Marketing Strategy and Alignment with PESTLE Factors

VinFast's marketing strategy encompasses a range of activities aimed at promoting its
brand, products, and services. The strategy takes into account the external factors
identified in the PESTLE analysis to ensure alignment with the prevailing political,
economic, social, technological, legal, and environmental conditions.

For example, VinFast's marketing efforts reflect its commitment to environmental

sustainability by emphasizing the benefits of its electric and hybrid vehicle offerings.
This aligns with the growing social and environmental consciousness among
consumers, as well as the global shift towards greener transportation options (Müller
et al., 2021).

In terms of political factors, VinFast's marketing strategy may consider government

support and regulations related to the automotive industry. By highlighting its
compliance with regulations and showcasing its contributions to local economic
development, VinFast can build a positive image and gain support from relevant
stakeholders (Huang & Rust, 2020).

2. Market Analysis and VinFast's Customer Approach

Market analysis is essential for VinFast to identify target markets, understand

consumer preferences, and develop effective marketing strategies. VinFast should
conduct market research to gather insights into customer needs, preferences, and
behaviors.

VinFast's customer approach should focus on delivering value and meeting customer
expectations. By offering competitive pricing, attractive financing options, and a
superior customer experience, VinFast can enhance customer satisfaction and loyalty
(Müller et al., 2021).

Furthermore, VinFast can leverage technological advancements in customer

relationship management (CRM) systems and data analytics to personalize its
marketing efforts. By understanding customer segments, preferences, and purchase
patterns, VinFast can tailor its marketing messages, promotions, and product offerings
to specific target groups (Huang & Rust, 2020).

VinFast should also consider the impact of digital transformation on marketing. With
the rise of digital platforms and social media, VinFast can leverage digital marketing
strategies, influencer marketing, and online advertising to reach and engage with its
target audience effectively (Müller et al., 2021).
By conducting thorough market analysis and adopting customer-centric approaches,
VinFast can position itself as a preferred choice among consumers, gain a competitive
advantage, and drive growth in the market.
B. Finance
VinFast's financial management and strategy are crucial aspects of its operations. By
examining VinFast's financial management in relation to the economic factors
identified in the PESTLE analysis, as well as its financial strategy and investments, we
can gain insights into how the company navigates economic challenges and positions
itself for growth.

1. Financial Management of VinFast and Economic Factors in PESTLE

VinFast's financial management involves effectively managing its financial resources,

making investment decisions, and ensuring the company's financial stability and
sustainability. Economic factors identified in the PESTLE analysis play a significant
role in shaping VinFast's financial management approach.

For instance, economic conditions such as GDP growth, inflation rates, and interest
rates directly impact VinFast's financial performance. During periods of economic
growth, VinFast may experience increased consumer spending, higher demand for
vehicles, and favorable financing options. Conversely, economic downturns may result
in reduced consumer purchasing power and a more challenging market environment
(Nguyen et al., 2020).

VinFast's financial management should also consider exchange rate fluctuations, as the
company operates in both domestic and international markets. Currency movements
can affect the cost of raw materials, production, and exports, potentially impacting
VinFast's profitability and competitiveness (Nguyen et al., 2020).

2. VinFast's Financial Strategy and Investments

VinFast's financial strategy encompasses its long-term financial goals and the actions
taken to achieve them. This includes decisions regarding capital structure, investment
opportunities, and financial risk management.

VinFast's financial strategy may involve securing adequate funding sources to support
its operations and growth initiatives. This could include a mix of equity financing,
debt financing, and strategic partnerships. By diversifying its sources of capital,
 VinFast can mitigate financial risks and enhance its ability to pursue new opportunities
(Tran et al., 2022).

In terms of investments, VinFast's financial strategy may focus on areas such as

research and development (R&D), innovation, and expanding production capacity. By
investing in R&D, VinFast can drive product innovation and technological
advancements, enabling the company to stay competitive in the automotive industry
(Tran et al., 2022).

VinFast may also consider investment opportunities in emerging markets or strategic

acquisitions that complement its core business and contribute to its overall growth
strategy. These investments can provide access to new markets, technologies, and
talent, enhancing VinFast's competitive position (Nguyen et al., 2020).

By implementing a sound financial strategy and making strategic investments, VinFast

can optimize its financial performance, support its growth objectives, and ensure long-
term success in the dynamic automotive industry.

IV. Conclusion

A. Summary of VinFast's PESTLE Analysis

VinFast's PESTLE analysis has provided valuable insights into the external factors that
influence the company's operations and market positioning. The analysis considered
political, economic, social, technological, legal, and environmental factors.

On the political front, VinFast operates within the framework of government regulations
and policies, which can both support and pose challenges to the company's growth.
Economic conditions, such as GDP growth and consumer trends, impact VinFast's market
demand and customer purchasing power. Social factors, including changes in shopping
habits and cultural influences, shape consumer preferences and behaviors. Technological
advancements and innovation play a crucial role in VinFast's product development and
marketing strategies. Legal factors, such as taxation policies, impact the company's
financial performance. Lastly, environmental considerations, including climate change and
the development of environmentally friendly cars, shape VinFast's commitment to
sustainability.

B. Evaluation of the Importance and Impact of the Examined Organizational Functions

In examining two organizational functions, marketing and finance, we have identified
their significance and impact on VinFast's operations.

The marketing function is critical for VinFast to effectively position its brand, understand
customer needs, and develop strategies to reach target markets. VinFast's marketing
strategy should align with the PESTLE factors to capitalize on market opportunities and
address external challenges. Market analysis and a customer-centric approach enable
VinFast to tailor its offerings to meet consumer demands and build customer loyalty.

The finance function plays a vital role in managing VinFast's financial resources, making
investment decisions, and ensuring long-term financial sustainability. Economic factors
identified in the PESTLE analysis directly influence VinFast's financial management
approach. By formulating a sound financial strategy and making strategic investments,
VinFast can optimize its financial performance and support its growth objectives.

C. Future Outlook for VinFast and Factors to Consider

Looking ahead, VinFast faces both opportunities and challenges. The company's
commitment to environmentally friendly cars aligns with the growing demand for
sustainable mobility solutions. VinFast should continue investing in research and
development to stay at the forefront of technological advancements and maintain a
competitive edge.

In addition, VinFast should closely monitor political and regulatory developments, as

changes in government policies can significantly impact the automotive industry.
Economic fluctuations and consumer trends should be carefully analyzed to adapt
marketing and financial strategies accordingly. Legal compliance, including taxation
policies, must be maintained to ensure financial stability.

Furthermore, VinFast should consider expanding its market presence, both domestically
and internationally, by leveraging strategic partnerships and exploring emerging markets.
Collaborations with technology companies and suppliers can foster innovation and
support the company's growth trajectory.

To remain successful, VinFast must prioritize sustainability, customer satisfaction, and

financial prudence in its future endeavors.

In conclusion, VinFast's PESTLE analysis provides a comprehensive understanding of the

external factors that influence the company's operations. The marketing and finance
functions play crucial roles in addressing these factors and positioning VinFast for growth.
By leveraging market opportunities, embracing technological advancements, and
prioritizing sustainability, VinFast can navigate the dynamic automotive landscape and
achieve long-term success.

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Bui, T. N. (2019). The impact of political factors on business activity: A case study of
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 References social:
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