VINGROUP

Vingroup Profile
Overview
Vingroup Ecosystem
Vision, Missions & Core Values
History of establishment and development
VINFAST
Vinfast profile
Overview
One of the World’s Leading Smart Electric Vehicle Company
Vision, Missions & Core Values
Formation history
Achievement
Our Business
Our Electric Vehicles
ELECTRC VEHICLE INDUSTRY ANALYSIS
Overview of the electric vehicle industry in the world
Overview of Vietnam's automotive industry
Opportunities and challenges faced by Vietnamese enterprises.
Opportunities
Core competencies and factors creating competitive advantage
VinFast's industry
Growth Trends in the EV Market
Key Industry Tailwinds and Growth Drivers
ANALYSIS OF EXTERNAL FACTOR
Macro environment analysis
Politics and Law
Risks Related to Vietnam
Economy, Population, Labor
ANALYSIS OF INTERNAL FACTOR
Micro environmental analysis
The current competitive
Vinfast's main competitors include famous gasoline car manufacturers and electric car
manufacturers in the world but do not have official distributors in Vietnam.
Cutomers
Supplier
Substitute product
 Vinfast- Supply Chain
ANALYZE INTERNAL FACTORS
Management
Company Structure and Activity
Human resource
Business activities
Vinfast Business Strengths
Finance
Comparison for the Three Months Ended March 31, 2022 and 2023
Comparison for the Years Ended December 31, 2021 and 2022
Liquidity and Capital Resources
Seasonality
Inflation
Quantitative and Qualitative Disclosures about Market Risk
Risks Related to VinFast’s Business and Industry
Research and development activities
Smart Mobility and the VinFast Differentiators
Battery Technology and Solutions
Technology
Integrated Partnership Model
Connected Car, Connected Driver, Connected Lifestyle
Safety and ADAS
Electric Drive System / Powertrain
E/E Architecture
Battery Design and Battery Management System Design
VinFast Companion App and the VinFast Driver Network
Risks Related to VinFast’s Information Technology, Cybersecurity and Data Privacy
Risks Related to VinFast’s Intellectual Property
Marketing
VINFAST STRATEGIES WERE BUILT
EFE MATRIX, IFE MATRIX. SWOT MATRIX AND EVELOPMENT STRATERY
S-O Strategy (Strengths combined with Opportunities)
S-T Strategy (Strengths combined with Threats)
W-O Strategy (Weaknesses combined with Opportunities)
W-T Strategy (Weaknesses combined with Threats)
BUSINESS STRATERY:
REFERENCE
VINGROUP

Vingroup Profile

Company name VINGROUP JOINT STOCK COMPANY

VIC

Ticker VIC

Charter capital VND 38.7 TRILLION (as of 31 December 2022)

Business registration number and tax code 0101245486

Headquarters No. 7, Bang Lang 1 Street, Vinhomes Riverside

Urban Area, Viet Hung Ward, Long Bien
District, Hanoi, Vietnam

Vingroup Joint Stock Company (Vingroup JSC)

Vingroup, formerly known as Technocom Corporation, was founded in 1993 in Ukraine. In the early
2000s, Vingroup started in Vietnam with two key brands: Vincom and Vinpearl. In January 2012,
Vinpearl JSC merged with Vincom JSC to form Vingroup Joint Stock Company.

Overview

Vingroup Joint Stock Company (“Vingroup" or "the Group”) is one of the largest listed companies in
Vietnam as measured by market capitalization. With the initial focus on developing hotel and residential
properties under the Vinpearl and Vincom brands, Vingroup has constantly developed and expanded its
business segments in the spirit of sustainable and professional development.
Vingroup now operates in three pillars:
• Technology – Industrials
• Real Estate and Services
• Social enterprises
Leading local top-of-mind companies among consumers in Vietnam in 2019
The chart shows the percentage of Vietnamese consumers who know the top local companies in their
minds in 2019. The chart shows that Vinamilk, Vingroup, and Viettel are the three best-known local
companies in the minds of Vietnamese consumers in 2019, namely Vinamilk (29%), Vingroup (21%),
and Viettel (69%). These three companies are all large corporations with diversified activities in many
fields. They also have an effective marketing strategy, which helps them reach a wide range of
consumers.
In addition, the chart also shows some other known local companies with smaller percentages. These
companies include FPT, Kinh Do, Mobile World, Hoa Phat and Biti's. These are all companies with
strong brands in their fields of activity. This is a useful source of information for businesses looking
to enter the Vietnamese market. You can use this information to identify key competitors and develop
an appropriate marketing strategy.
Vingroup Ecosystem

Vision, Missions & Core Values

Vision
“Vingroup aims to develop into a leading Technology – Industry – Services group in the region.”
With the aspiration to be a pioneer and the capability to deploy sustainable investment and development
strategies, Vingroup aims at becoming a leading regional conglomerate focusing on Technology –
Industrials; Real estate Development and Services. The Group will continue to innovate in building an
ecosystem of high-quality products and services aimed at improving the lives of everyone and
enhancing the international reputation of Vietnamese brands.
Mission
“To Create a Better Life For People”
Core Values
Embracing discipline and professionalism, Vingroup strives to uphold six core values
Corporate Structure
Vingroup operates in core areas that are operated independently by independent profit centers (P&Ls),
with separate accounting and self-responsibility for business plans and results. The corporate divisions
in Vingroup JSC, the parent company, provide support, supervision, and operational guidance to the
P&Ls. They also play a leading role in the committees and working groups that meet to assess, monitor,
and make decisions regarding the Group and its business units. Vingroup’s governance structure is as
follows:
History of establishment and development

Vingroup is a well-known multidisciplinary private corporation in Vietnam. The predecessor

of Vingroup is Technocom Group, founded in 1993 in Ukraine.
In the early 2000s, Technocom returned to Vietnam, focusing on investment in tourism and real
estate with two initial strategic brands, Vinpearl (tourism) and Vincom (real estate). In 2003, Vinpearl
JSC started construction of Vinpearl Resort Nha Trang. In 2004, Vincom JSC launched Vincom City
Centers and expanded into retail with the VinMart supermarket system in 2009.
By January 1/2012, Vincom Joint Stock Company and Vinpearl Joint Stock Company merged,
officially operating under the model of a Group with the name Vingroup - Joint Stock Company. Since
then, Vingroup has continuously expanded its business with multiple fields of operation. In 2013,
Vingroup launched Vinmec - a high-standard international general hospital system. In 2014, Vingroup
established Vinschool - an education system from kindergarten to high school according to international
standards.
Following the success, in 2017, Vingroup father eyes Vinfast - a Vietnamese brand of electric
cars and motorcycles. And inaugurated VinUniversity - the first private non-profit university in Vietnam
in 2018; continue to expand into the agricultural sector with VinEco - a high-tech agricultural
production group in 2019.
Vingroup is a strong corporation with an impressive history of formation and development.
Vingroup has been actively contributing to the development of Vietnam and aims to become a leading
technology, industry and service group of international stature.
VINFAST

Vinfast profile

Name VinFast

Traded as NASDAQ: VFS

Founded June 2017

Founder Pham Nhat Vuong

Parent Vingroup

Website vinfastauto.com

Tax 0107894416

Overview

One of the World’s Leading Smart Electric Vehicle Company

VinFast, the first Vietnamese all-electric brand, was established on 02 September 2017, with the
groundbreaking for its manufacturing plants in the Dinh Vu-Cat Hai economic zone in Hai Phong.
VinFast’s mission is to offer consumers affordable, electric cars. Its manufacturing complex includes
1,400 robots from KUKA, ABB, Siemens, and Durr. The level of automation in Press and Paint shops
is 90% and 95%, respectively.
The abbreviation “FAST” in “VinFast” stands for “Style-Safety-Innovation Pioneer.” Its goal is to
support the global EV revolution with electric cars, electric buses, electric motorcycles, and electric
bikes. VinFast prioritizes the customer experience through relentless innovation to achieve the highest
quality. VinFast promotes the replacement of internal combustion engine vehicles with electric vehicles,
thereby creating a green future for all.
VinFast motto is “Vietnam-Style Safety-Innovation-Pioneer.” Its goal is to support the global EV
revolution with electric cars, electric buses, electric motorcycles, and electric bikes.
As of March 2023, VinFast has introduced six domestic EV models, one domestic electric bus, and nine
domestic electric motorcycle models. In the international market, VinFast has introduced four EV
models in the B- and E-segments and several electric bike models. Three EV car models, VF e34, VF
8 and VF 9, have been delivered to customers. Models VF 6 and VF 7 will be available for reservations;
delivery of the VF 5 Plus, VF 6 and VF 7 model is expected in 2023.
VinFast also established a network of R&D divisions/centers/institutes in order to achieve its goal of
becoming one of the world's leading smart electric vehicle manufacturers, in addition to support from
research institutes and technology companies within the Group.

Vision, Missions & Core Values

Vision
Become an intelligent electric vehicle brand that drives the global electric hehicle revolution.
Mission
Creating a Green Future for Everyone
Brand philosophy
Focusing on customers, VinFast constantly innovates to create first-class products and excellent
experiences for everyone
Core value
High quality products, good prices, and excellent after-sales services.

Formation history

Founded in 2017 by Vingroup, the company designed its models with the help of Pininfarina, BMW,
and Magna Steyr and participated in the 2018 Paris Motor Show. VinFast claims it will be the first
volume automotive manufacturer in Vietnam as well as the first Vietnamese automaker to participate
in a major international auto show.
VinFast broke ground in September 2017 on an 828-acre (3,350,000 m2) facility in an industrial park
located on Cat Hai Island near the city of Hai Phong. The factory with paint shop, press shop, assembly
shop and engine shop was built in just 21 months
The investment is US$1.5 billion in the first phase of a program to make cars and electric motorbikes
at a greenfield factory on the facilities. The company claimed that it has aggregated talent from multiple
established companies and is sourcing European design, engineering, and production technology
partners. The first two vehicles that were shown at Paris motor show in the fall of 2018 are the LUX
SA2.0 and the LUX A2.0, designed by Pininfarina
In 2018 General Motors announced a partnership between Chevrolet and VinFast. VinFast will have
exclusive rights to distribute Chevys in Vietnam and will take ownership of the existing General Motors
(GM Korea) factory in Hanoi (VIDAMCO). That factory will then build a GM-licensed "all-new global
small car" to be sold under the VinFast name.
VinFast signed two contracts with Siemens Vietnam, a unit of Siemens AG, for the supply of technology
and components to manufacture electric buses in Southeast Asian countries in August 2018. On 21
March 2019, it sent the first batch of 155 VinFast Lux cars, 113 completed vehicles and 42 semi-finished
cars, abroad in Europe, Asia, Australia and Africa to conduct field tests for quality testing and to qualify
for a 5-star ASEAN NCAP rating
The company would have been the title sponsor of the inaugural edition of the Formula One Vietnamese
Grand Prix, which was due to take place during the 2020 season - the race was later canceled due to
COVID-19 pandemic. In Q1 2020, VinFast was the fifth best-selling car brand in Vietnam.
On 25 February 2020, it was reported that VinFast vehicles were spotted in South Africa for field tests
at Kakamas in the Northern Cape Province and in Cape Town. On September 20, the company
announced a loss of VND 6.6 trillion ($284 million) in the first half of the year.
In December 2020, VinFast released preliminary images of a pickup truck being developed weeks after
the Lang Lang testing center was purchased.Other vehicles in development included a three-door
hatchback, two different coupe-type SUVs, a small SUV, a four-door coupe, a couple of people movers
and electric scooters. According to the Intellectual Property Office of Vietnam, the patents for these
vehicles are set to expire on 14 January 2024.
On July 27, 2021, parent Vingroup announced that Michael Lohscheller, the CEO of Opel, had been
appointed CEO of VinFast Global. Five months later, on December 27, it was announced that
Lohscheller had resigned the position.
On 30 September 2021, VinFast reported that Cerence software will be used for its electric vehicles as
an intelligence voice assistant. On 25 December, it delivered the first batch of 100 VF e34 electric
crossovers to Vietnamese customers at VinFast's manufacturing complex in Hai Phong. The VF e34
marks VinFast's first EV model and the first ever electric vehicle to be manufactured and sold in
Vietnam.
According to Reuters, Vinfast had only made 7,400 car sales in 2022, all of which occurred in Vietnam.
The company however has set itself a target of 50,000 car sales globally for 2023. They missed the goal
but delivered close to 35,000 electric cars in 2023. Their Chairwoman, Le Thi Thu Thuy, projected
sales of 40,000 - 50,000 vehicles in 2024.

On 6 January 2022, reports emerged that VinFast plans to build new EV plants in Germany and the
United States as part of the company's plans to retire production of gas-powered vehicles and transition
fully to EVs by late 2022.
Achievement

In the Technology & Industrials pillar, VinFast proudly marked its name as Vingroup’s pioneering
brand in global market penetration. The year 2022 was a highlight of the brand when Vinfast officially
became the first internal combustion engine car manufacturer to transform into an all-electric brand.
Specifically, VinFast reached a historic milestone in the domestic car manufacturing industry in
November 2022 by becoming the first Vietnamese brand to pass every quality standard to export cars
to the United States – one of the most rigorous markets in the world. Following the United States
Environmental Protection Agency (EPA) official confirmation of the estimated battery range, it
delivered the first shipment of the VF 8 City Edition model to American consumers, heralding a new
beginning for VinFast in international markets.
VinFast also opened 22 sales and service centers in North America and Europe with a methodical
approach to global market penetration. In addition, it signed a contract to build an automotive
manufacturing factory in North Carolina, in the southern U.S. with an initial investment of USD 2
billion in March 2022. The factory will have an annual capacity of 150,000 units and is expected to go
into operation by 2025, giving the company a considerable advantage in the US market.
Meanwhile, VinFast still receives considerable interest from domestic consumers thanks to its core
business strategy, “Quality car – Accessible price – Excellent service,” with sales reaching over 24,000
units in 2022. In the last month of 2022, VinFast’s two electric car models, the VF 8 and the VF e34
ranked among the top 10 best-selling cars in the market, with VF 8 coming at Number 3 after only four
months of delivery. This impressive result shows VinFast's early success in gaining customers’ trust in
its journey to create a green future for everyone.
VinFast remains the number one e-scooter brand in the market, with sales totaling 60,000 units in 2022,
a 47% year over year increase. VinFast’s new-generation e-scooters are replacing traditional motorbikes
thanks to the company’s pioneering development in new battery technologies for longer travel
distances. One notable model is the “people’s electric bike,” the VinFast Evo2000, with 18,000 orders
in the first 48 hours of sales

Our Business

We are an innovative, full-scale mobility platform focused primarily on designing and manufacturing
premium EVs, e-scooters and e-buses. Our initial EV product line is an all-new range of fully-electric
A- through E-segment SUVs, the first of which began production in December 2021. We focus
strategically and exclusively on EVs and fully phased out production of ICE vehicles in 2022 in order
to execute on our vision of creating an e-mobility ecosystem built around customers, community and
connectivity alongside our new vehicle roll-out. We plan to deliver on this strategy by leveraging our
manufacturing expertise and strong track record of producing ICE vehicles and e-scooters. We started
producing e-scooters in 2018, passenger cars (ICE vehicles) in 2019 and e-buses in 2020. We have
delivered approximately 105,000 vehicles (primarily ICE vehicles) and approximately 182,000 e-
scooters through the end of June 2023. Innovation is at the heart of everything we do. We focus on
achieving operational efficiency and technological integration, and we seek to continuously improve
our processes to deliver world-class products.
We plan to begin selling our electric SUVs in key global markets in 2023. Our initial target markets are
the U.S. and Canada in North America and France, Germany and the Netherlands in Europe. We will
also continue to target our existing market in Vietnam. Our target markets are expected to offer an
expected TAM of $1.3 trillion by 2028, which would represent an annual shipment of approximately
34 million vehicles, according to Frost & Sullivan. We see these geographies as vital to our strategy,
with significant momentum and positive forces driving the switch to EVs across vehicle segments.
Specifically, we believe the A- through E- electric SUV segments will lead the EV revolution and drive
profitable growth in the near and long term across the automotive market. While we are currently
focused on these segments, we continue to evaluate the full spectrum of vehicle types for future product
development. We believe our vehicles are differentiated, especially across the emerging EV space,
through our premium-quality product offering, including advanced technology and new-mobility
features for our drivers, a fashionable and luxurious design, and our comprehensive Smart Services
solution. We expect to remain competitive by focusing on SUVs, the most popular consumer vehicle
segment, and including in our products top tier technology and luxurious outfitting that is not standard
for similar vehicles at our price points. We strongly believe in the future of Smart Mobility and strive
to provide the VinFast platform as an access point to that future.
Our VF 8 (D-segment) and VF 9 (E-segment) models are our first electric SUVs to be offered in North
America and Europe. Since we introduced these models at the Los Angeles Auto Show in November
2021, they have been showcased at the International Electric Vehicle Symposium, Consumer
Electronics Show, New York Auto Show, Paris Motor Show, Montreal Auto Show and Canadian
International Auto Show. We currently offer two trims of the VF 8 and VF 9: Eco and Plus. The Eco
trim offers a longer driving range than the Plus trim with standard features. The Plus trim offers higher
horsepower and luxury features including a panoramic glass roof, leathered upholstery, a power-assisted
tailgate and captain’s chairs for the second row. We began U.S. deliveries of the VF 8 in March 2023
from our initial U.S. shipment of 999 VF 8 “City Edition'' vehicles in both Eco and Plus trims. The
“City Edition” was our first version of the VF 8 to go through the relevant testing and approval processes
in the U.S. and therefore completed those processes and was available for delivery sooner than the VF
8 (87.7 kWh battery). We offered a $3,000 discount on the VF 8 “City Edition” to select customers who
had made reservations for the VF 8 in the U.S. The “City Edition'' is also available on a 24-month or
36-month lease basis for California residents only. Customers were given the option to receive the “City
Edition'' at the discounted price or maintain their existing reservation for the VF 8 (87.7 kWh battery).
Certain customers who opted to take delivery of the VF 8 “City Edition'' may be eligible for the VinFast
Lease Forward Program after 12 months of leasing, and subject to the terms and conditions of the
program, would be able to exchange their VF 8 “City Edition” for the VF 8 (87.7 kWh battery) with
equivalent trim. We have no plans for future offerings of the VF 8 “City Edition'' in North America or
Europe but will continue to offer this VF 8 “standard driving range” option in Vietnam. In April 2023,
we dispatched a shipment of approximately 1,900 VF 8 (87.7 kWh battery) that use battery components
that result in a longer driving range than the VF 8 “City Edition, and plan to deliver the VF 8 vehicles
from this shipment to North American customers in the second half of 2023. Deliveries in Europe are
expected to begin in the second half of 2023. We plan to deliver the VF 9 in North America in 2023
and in Europe in 2024. As of June 30, 2023, we had approximately 20,000 reservations for the VF 8
and VF 9 globally (of which approximately 10,000 reservations are in the U.S.).
We commenced delivery of the VF 5 (A-segment) model in Vietnam in April 2023. The VF 5 is our
electric SUV for the Vietnam market that offers dynamic youthful styling, targeting first-time, budget
conscious buyers. We received approximately 3,300 reservations in the first nine hours of introducing
the VF 5 in Vietnam in December 2022. At the 2023 CES, we unveiled our forthcoming VF 6 (B-
segment) and VF 7 (C-segment) models. The VF 6 is our electric SUV for the family-oriented driver.
The VF 7 is our driver centric electric SUV, accentuated by its futuristic styling. First deliveries of the
VF 6 and the VF 7 are targeted for 2023. In June 2023, we introduced our forthcoming VF 3, which is
a mini car specifically designed for the Vietnam market. The VF 3 is planned to feature a 2-door design
and seating for up to five people, with integrated basic smart features. We plan to offer the VF 3 in Eco
and Plus trims. We target to open pre-orders for the VF 3 in the third quarter of 2023 and commence
deliveries in late 2024.
We have achieved a great deal in our short history. Following the founding of our company in 2017,
we achieved the start of production of our first ICE vehicle in only 21 months. As a new entrant and the
first Vietnamese automotive OEM, we have partnered with top-tier global companies, including Magna,
Tata Technologies and Pininfarina to accelerate the integration of industry best practices into our
processes. Deliveries of our first fully-electric SUV, the VF e34, began in Vietnam in December 2021,
deliveries of the VF 8 began in Vietnam in September 2022 and in the U.S. in March 2023, and
deliveries of the VF 9 and the VF 5 began in Vietnam in March and April 2023, respectively. As of
June 30, 2023, we sold approximately 18,700 EVs (consisting of approximately 9,000 VF e34s and
7,500 VF 8s, other models and abuses) mostly in Vietnam. In the second quarter of 2023, we sold
approximately 9,500 EVs, consisting of approximately 4,200 VF e34s, 3,400 VF 8s, other models and
abuses. As of June 30, 2023, we had reservations for approximately 26,000 VF e34, VF 5, VF 8 and
VF 9 EVs globally. Approximately 40% of the reservations had non-refundable reservation fees and
the remainder were cancellable reservations with a nominal amount of refundable reservation fees. First
deliveries of the VF 6 and VF 7 are targeted for 2023 and first deliveries of the VF 3 are targeted for
late 2024. See “Risk Factors—Risks Related to VinFast’s Business and Industry—VinFast’s long-term
results depend upon its ability to successfully introduce and market new products and services, which
may expose VinFast to new and increased challenges and risks.”
We quickly established significant brand recognition in Vietnam and within 18 months from product
launch, we gained the leading market share in Vietnam for each of our product segments, based on
management’s analysis of publicly available data. This share was acquired from the incumbent global
vehicle brands from Asia, Europe and North America that have historically dominated the Vietnamese
market prior to our arrival. Since our establishment, we have gained significant experience in
manufacturing at scale, which has helped us swiftly incorporate EVs into our existing assembly lines.
Like other entities within the Vingroup family of companies, turning early-stage businesses into market
leaders through top-tier execution and leadership is a hallmark of our approach to business.

Our Electric Vehicles

Our electric vehicles are designed for the lifestyle of the modern EV adopter: tech-forward, high-end,
and constantly-evolving. We are passionate about providing high-quality, clean, sleek and practical
vehicles, tailored specifically to the end markets we are targeting on a vehicle-by-vehicle basis. We
have worked with our globally-recognized design partners, primarily Pininfarina, to ensure each of our
vehicles offers a distinctive and unique style.
Our designs feature our signature lighting that frames our “V” logo and sweeps out to the corners of the
car. This design element communicates our brand day and night. Each vehicle segment is creatively
designed to fit the key characteristics and wants of drivers in that specific segment; including various
proportions, in-cabin seating options, wheelbases and other key features. The overarching character of
our vehicles provides a comfortable and modern feel, while powerfully representing the VinFast brand.
Inside the vehicles, there is a unique blend of simplified technology and hand-craftsmanship. One of
the highlights of the interior is our proprietary, full-color heads-up display to put information directly
in the driver’s line of sight to keep attention on the road. A large, high-quality touch screen minimizes
the number of physical buttons and simplifies the user interface. The soft interior trim in each VinFast
vehicle is hand-cut and sewn, creating a customer-tailored and luxurious driver experience.
Vehicle Overview

Our EV platform consists of the following models:

• VF e34—our first EV offering, a C-segment electric SUV exclusively for the Vietnam market.
We began delivering the VF e34 in Vietnam in December 2021. From a product launch
perspective, we had great success with the launch of our VF e34, Vietnam’s first EV that we
pioneered in 2021, setting records in Vietnam by receiving over 25,000 reservations after three
months, and receiving more than 417,500 organic discussions on social media in the two days
following the announcement. The VF e34 was voted the “Green vehicle of 2022” and “Favorite
C-segment CUV in 2022” by Otofun and among the top 10 best-selling vehicles in Vietnam in
June 2022 according to VAMA, TC Group and our public sales report.
 • VF 8—our first EV offering for the global consumer market, a D-segment electric SUV. We
currently offer two trims of the VF 8: Eco and Plus. The Eco trim offers a longer driving range.
The Plus trim offers luxury features including a panoramic glass roof, leathered upholstery, a
power-assisted tailgate and captain’s chairs for the second row. We began U.S. deliveries of
the VF 8 in March 2023 from our initial U.S. shipment of 999 VF 8 “City Edition” vehicles in
both Eco and Plus trims. In April 2023, we dispatched a shipment of approximately 1,900 VF
8 (87.7 kWh battery) that use battery components that result in a longer driving range than the
VF 8 “City Edition, and plan to deliver the VF 8 vehicles from this shipment to North American
customers in the second half of 2023. Deliveries in Europe are expected to begin in the second
half of 2023. We have no plans for future offerings of the VF 8 “City Edition” in North America
or Europe but will continue to offer this VF 8 “standard driving range” option in Vietnam.
• VF 9—a sophisticated E-segment electric SUV featuring three rows of seats for the Vietnam,
North America and European markets. We currently offer two trims of the VF 9: Eco and Plus.
We commenced delivery of the VF 9 in March 2023 in Vietnam.
• VF 5—our A-segment electric SUV for the Vietnam market that offers dynamic youthful
styling, targeting first-time, budget conscious buyers. We began accepting reservations for the
VF 5 in Vietnam in December 2022 and received approximately 3,300 reservations in the first
nine hours. We currently offer the VF 5 with Plus trim and commenced delivery in April 2023
in Vietnam.
• VF 6—a B-segment electric SUV for the family-oriented driver for the Vietnam, North
America and European markets. We plan to offer Eco and Plus trims and first deliveries are
scheduled for 2023.
• VF 7—a driver centric C-segment electric SUV, accentuated by its futuristic styling for the
Vietnam, North America and European markets. We plan to offer Eco and Plus trims and first
deliveries are scheduled for 2023.
• VF 3—a contemporary and compact mini car EV designed for the Vietnam market. VF 3 is
planned to feature a 2-door design and seating for up to five people, with integrated basic smart
features. We plan to offer the VF 3 in Eco and Plus trims. We target to open pre-orders for the
VF 3 in the third quarter of 2023 and commence deliveries in late 2024.

ELECTRC VEHICLE INDUSTRY ANALYSIS

Overview of the electric vehicle industry in the world

Tesla reignited public interest in electric vehicles in 2008. Contrary to public opinion, EVs are not a
new concept. They have been around since the nineteenth century, with the first car produced as early
as 1828. However, the market never gained any significant traction and by 1912, high costs alongside
limited research and development into advanced technologies resulted in a great reduction in public
interest.
General Motors managed to revive interest in 1996, when it started leasing programs for the EV1, an
electric car with a range of 70-100 miles. In 1999, the company also launched an upgraded version
equipped with nickel-metal hydride batteries and an extended range of 140 miles. Even though 1,000
of these cars were manufactured, the project was later abandoned.
The current buzz surrounding the EV industry can be largely attributed to Tesla, which reignited public
interest with the launch of its lithium-ion battery-powered Roadster in 2008. This proved to be pivotal,
not only for Tesla but for other U.S. companies as well—all of whom received generous funding from
the U.S. Department of Energy. Tesla used the money to develop the hugely popular Model S, therefore
laying the foundation for increased adoption of EVs.
However, despite the excitement surrounding EVs, the market has experienced 9 many false starts over
the last decade. Given that EV adoption rates stood at around 14% of the overall car market in 2022,
the global market is still very much at an ‘innovator’ phase of the product adoption curve. The primary
reasons for this include concerns around range, price, charging infrastructure, and, at times— safety.
Additionally, there is a general consumer inertia about switching from the internal-combustion engine
(ICE), which has been the dominant automotive motor type for decades. Moreover, the sharp fall in oil
prices around the world, which began in 2020 has significantly lowered the total cost of owning ICE
vehicles, thereby driving their sales.
One other reason for the slow adoption of EVs is the big ecosystem they are dependent on. While there
is a huge number of gas stations all over the world, the number of charging stations is still low.
Additionally, charging stations from different providers use different charging methods, making it even
harder for consumers to know in advance how much it would cost to charge their EV.
The history of electric vehicles started in the early 1800s, but only took off when Tesla entered the
market and reignited public interest in electric cars. In 2022, global electric vehicle sales surpassed 10.2
million units, an increase of 55% over 2021. Currently, Mainland China is leading the way with a market
share of almost 58%. Car manufacturers are pushing to bring out new electric car models and have big
plans for the future. The 2022 race for the highest market share was won by the Tesla Model Y with
8%, followed by BYD Song Plus (BEV + PHEV) and Tesla Model 3 with 5% each, Wuling Hong
Guang MINI EV with 4%, and BYD Qin Plus (BEV + PHEV) with 3%.
The global plug-in electric vehicle market has witnessed robust growth over the last 10.200 6.572 2019
2020 2021 2022 few years with sales increasing from around 120 thousand in 2012 to 10.2 million in
2022, growing at a CAGR(1) of almost 56%. Notably, the sales figure increased by nearly 55.2% in
2022 over 2021. Stringent government regulations on carbon emissions, subsidies and other incentives,
sharp reductions in battery prices, improvements in charging infrastructure, and the rise of the
environmentally responsible consumer are some of the factors that drove this growth.

It is safe to say that battery-powered vehicles are taking over the automobile market. The growth of the
Electric Vehicles (EV) market has been significant despite the COVID-19 pandemic and the resulting
supply chain bottlenecks. Despite these recent challenges and rising production costs as a result of
increasing raw material prices, EV sales are still going up at a fast rate. If this continues, they are set to
surpass the sales of conventionally propelled vehicles (i.e., vehicles with internal combustion engines)
. Compared to 2020, sales of new electric vehicles more than doubled in 2021 with an increase of 51.8%.
This brought EV sales to about 5% of global passenger car sales in 2021.

China conveniently topped the global sales charts in 2021 with more electric vehicles sold than the rest
of the world combined and almost five times more than Germany, which was in second place. Factors
responsible for the Chinese market’s exponential growth include but are not limited to, the Chinese
government’s electric vehicle subsidies, an increasing range of mini electric vehicles, and more
affordable brands coming onto the market. Overall, Europe recorded an increase between 2020 and
2021, reaching about 66%, with the plug-in hybrid share of all electric vehicle sales being the biggest
in the world. Driven by the availability of more models, as well as market expansion and purchase
incentives, the European market is expected to continue along this trend as countries within the EU
adopt stricter CO2 emission standards and move toward zero-emissions vehicle mandates.
Regardless of the tremendous growth in the Electric Vehicles market, it is only limited to a part of the
world. As the race to full electrification continues, China, Europe, and the U.S. account for about 95%
of the global electric vehicle sales, whereas the rest of the world seems to struggle with catching up. In
addition to government subsidies just getting introduced or still being nonexistent, the top reasons cited
for the slow progress experienced in those parts of the world include the lack of public charging
infrastructure and the premium prices of electric vehicles in these regions.
There are five major drivers of the electric vehicle market: government policies, the Tesla effect, lower
battery costs, 5G rollouts, and the launch of the Battery-as-a-Service model. Governments are trying to
achieve their emission goals set out in various global agreements and have devised various incentive
schemes to increase electric vehicle sales. While electric vehicles are a major step towards achieving
environmental goals, Tesla managed to fuse this with high performance and aesthetics, thereby playing
a pivotal role in changing the industry’s overall appeal. The significant reduction in the prices of battery
packs is also driving mass adoption of 2 of these vehicles. Further, 5G rollouts and new business models
such as Battery-as a-Service are expected to drive future growth.
Five main challenges hinder the adoption of electric vehicles: lack of infrastructure (such as charging
stations), high upfront costs, lack of consumer knowledge and wrong perceptions, pressure from oil
companies and the car manufacturer lobby, and potential long-term effects of the COVID-19 pandemic.
Not only are charging stations still very few and far between, but they are also usually manufactured by
different suppliers without a standardized charging and payment system. In addition, high upfront costs
make electrical vehicles less attractive than traditional internal-combustion engine cars, mainly due to
the high battery costs which often account for as much as 50% of the total vehicle cost.
Autonomous driving and electric cars go, without a doubt hand in hand. Thanks to easier integration
and component control, it is easier to realize self-driving cars using electric vehicles rather than vehicles
with internal combustion engines. While the U.S. has been pioneering this trend, Mainland China will
be the market leader. Despite the challenges, lithium-ion batteries are still expected to dominate the
battery market for electric vehicles.
This is mainly because the development of new battery technologies is both very expensive and
complicated. Moreover, Mainland China’s domination of the lithium-ion battery supply chain is
expected to come to an end in the medium to long term, as the U.S. and Europe are gaining more control
over various elements of the supply chain. Interestingly, quantum computing is expected to significantly
disrupt the electric vehicle industry, resulting in higher battery ranges, new product launches, and
autonomous driving. Due to their low operating costs, electric vehicles are also part of the ride-sharing
movement, with many car manufacturers launching electric car-sharing operations. Moreover, the
demand for related electronics and software is expected to grow significantly over the next few years.
Lithium-ion batteries dominate the market mainly because they deliver the highest range at a lower cost
when compared to any other battery. However, due to limitations such as long charging times, size,
heavy weight, and limited battery capacity, companies such as Toyota, Volkswagen, Nissan, and Tesla
are now investing in solid-state, lithium-sulfur, and zinc-air batteries for their future models. Further,
universities, technology companies, and independent battery start-ups are collaborating to develop other
types of batteries, such as aluminum-ion, smart membranes, and graphene-based supercapacitors to
enable faster charging times 3 and longer life cycles.
Rising pollution levels, potential operational cost savings, and heavy dependence on public
transportation are the three major factors driving the gradual switch from hydrocarbon-based to electric
public transport. The total number of electric buses in the world is expected to witness a 235% increase
from 800,000 in 2022 to about 2.7 million in 2030, with Mainland China accounting for a share of more
than 96%. Financial support from the government, a large urban population—and the resultant
pollution, a lack of traditional transportation infrastructure, global trade, and increased public awareness
are the five key reasons for Mainland China’s dominance.
Tesla is the most recognized electric vehicle (EV) brand in the world. In 2022, combined sales of the
Model 3 and Model Y totaled 1,247,146 units. Tesla’s success is primarily attributed to its aesthetics
and longer ranges compared to other EVs. BYD is one of the largest selling brands in Mainland China,
but its focus on international markets is limited. The company’s top-selling brand in 2022 was the Han
with sales of over 274,015 units. Volkswagen sold a total of 572,100 EVs in 2022, up 26% from the
452,839 sold in 2021. The other European player, BMW, has 14 EV models in its portfolio and had
over 2 million electric vehicles in circulation by the end of 2022.
In terms of charging infrastructure, Mainland China once again leads the pack with more than 1,760,000
publicly accessible charging points, followed by South Korea (approx. 201,000), the U.S. (approx.
128,000), and the Netherlands (approx. 124,300).
Mainland China is by far the market leader, not only in Asia but also worldwide. PEV sales amounted
to over 4,400,000 units in 2022—nearly 175 percent more than the combined PEV sales in Europe.
South Korea, Japan, and India are the other leading markets in Asia. As for e-LCVs, Mainland China
and South Korea account for an 86% share in the Asian market, with combined sales of over 167,500
units in 2022.

Overview of Vietnam's automotive industry

The automotive industry has always been a major contributor to the GDP of major economies in the
world, accounting for 3.25% of the GDP of the United States, 5% of China's GDP, 4% of Germany's
GDP, and 12% of Thailand's GDP. In Vietnam, the automotive industry accounts for 3% of the country's
GDP. It is precisely for this reason that the industry has always received special attention and treatment
from the government. In addition to ATIGA (and possibly the upcoming EVFTA), trade agreements
have always provided exceptions for the automotive industry to protect it from pressure from
competitors from around the world.
 The contribution of the automotive industry to GDP

Compared to regional countries, domestic producers have weaker competitiveness. The scale of the
Vietnamese automotive market is too small to allow car manufacturers to invest in component
production. According to Toyota Vietnam, the annual sales of components must reach around 50,000
units to make investments. This means that a car must produce 50,000 units within a year, which is
twice the current sales model. The incentive measures for small-scale and attracting auxiliary
investment are still unclear, which limits Vietnam's production to assembly. This makes the cost of cars
produced in Vietnam 10-20% higher than that of major manufacturers in regions such as Thailand and
Indonesia.
The changing business environment. Up to now, Vietnam has signed 17 free trade agreements with
countries and blocs, of which 10 have taken effect. A quite special thing about the signed agreements
is that two industries such as Automobiles and Steel are always treated very specially and are usually
not on the list of tax lines that are exempted or reduced, except ATIGA and possibly the upcoming EV-
FTA.
The natural consumption growth rate is at 10.5% without government promotion measures. A clear
correlation between car consumption and GDP per capita and the number of cars per 1000 can be seen.
people of countries. Currently, Vietnam is still in the early stages of the growth cycle. The reasonable
consumption growth rate for Vietnam is about 10.5%/year if looking at the correlation with GDP per
capita of countries in the region. When GDP/person increases by 1%, car consumption/person increases
by about 1.5%. However, the growth rate may also be higher and reach about 12 - 15%/year in the next
10 years if car prices decrease and stimulus measures such as banning motorbikes in inner cities become
a reality.
 Correlation of income - car consumption

If not influenced by government policies and other incentive factors, the annual growth rate of
automobile consumption will reasonably increase by 10.5%. There is a clear correlation between car
consumption and per capita GDP with the number of cars per country for 1000 people. Currently,
Vietnam is still in the early stages of its growth cycle. Considering the per capita GDP of various
countries in the region, Vietnam's reasonable consumption growth rate is about 10.5% per year. When
per capita GDP increases by 1%, car consumption increases by about 1.5%.
The Vietnamese automotive industry is in a growth stage. There is a lot of room for growth, as the
proportion of households owning new cars is only about 2%. The main mode of transportation for
Vietnamese people is motorcycles. Given the government's emphasis on policy changes to drive growth
in the automotive industry, we believe that people's opportunities to access automotive products will
significantly increase. The price of cars will be more in line with the income of most people, and the
choices in low-priced segmented markets will be more diverse than before. The growth prospects will
vary according to the environmental, legal, and economic conditions at each stage. However, we believe
that if the Vietnamese economy grows more sustainably than ever before, the Vietnamese automotive
industry will maintain strong long-term growth. In addition, from 2023 to 2028, the number of active
cars per 1000 residents in Vietnam is expected to continue to increase, totaling 1.9 vehicles (over
7.15%). After the fifth year.
In 2014, the output of cars produced in Vietnam reached about 134 thousand units and continuously
increased over the years. In 2020, due to the impact of COVID 19, car production decreased from 287.12
to 257.55 thousand units compared to 2019. By 2023, car production in Vietnam will reach about 347,4
thousand units, increased compared to the previous year.

In 2023, passenger car sales account for the largest proportion of total vehicle sales in Vietnam, with
approximately 214.6 thousand units. In that year, total car sales in Vietnam amounted to about 276.4
thousand units.
Continuing the breakthrough success of more than a decade of the passenger car market in 2022. In
2023, passenger car sales in Vietnam reached about 214.62 thousand units. In that year, the country's
total car sales reached more than 276 thousand
units.

Specifically, in 2023 Northern Vietnam is considered the largest passenger car market with about
92,530 units sold, accounting for 43.1% of total sales. In comparison, passenger car sales in the southern
region of the country amounted to 82,246 units.
The concentration of Vietnam's automotive industry is moderate to high. According to data from the
Ministry of Industry and Trade, Nma in Vietnam has 50 automobile manufacturing companies, 45
producing chassis, body and body, and 214 producing automotive parts. The number of enterprises in
Vietnam is much lower than 385 in Malaysia and 2500 in Thailand. The four major car manufacturers
THACO, Toyota, Hyundai, and Ford hold 75% of the market share. THACO ranks first with two major
brands, Kia and Mazda, followed by Toyota with a market share of 19% and Hyundai with a market
share of 18%. In November 2018, the HHI (Herfindahl Hirschmann Index) market share of the
Vietnamese automotive industry was 1698.57, and according to the index, the automotive industry is
considered to have a medium to high concentration.
In the past decade, the value of domestic automobile imports has fluctuated. In 2014, the value of
Vietnam's automobile imports was approximately 1.57 billion US dollars, which increased significantly
to 2.99 billion US dollars in 2015, but continued to decline over the next three years. In 2018, due to
negative feedback from various countries, non-tariff barriers faced difficulties in restricting imports,
resulting in imports being affected. In 2023, Vietnam's automobile imports amounted to approximately
2.83 billion US dollars, a significant decrease from the previous year.
Changes in industry structure are happening more strongly than ever. Although the growth of domestic
car consumption is easy to see, the Vietnamese Automobile industry is also greatly influenced by
industry changes in the world. Bloomberg calls the current moment in the Auto industry a time of
unprecedented change. Electric cars are becoming more popular than ever when they can solve the
problems of urban pollution, climate change, depletion of fuel sources from oil and especially the
commitment of the participating parties. The United Nations Framework Convention on Climate
Change, at its 26th conference (COP26), self-driving systems are also being strongly invested in and
developed as a basis for countries including Vietnam to pay attention. Pay special attention to the
development of electric vehicles. For that reason, car manufacturers and suppliers are investing large
sums of money in research and development activities to stay ahead of new trends.
Electric vehicles are currently divided into many types:
- HEV: Vehicles still mainly run on internal combustion engines (ICE). However, when using the brakes
or when going downhill, the electricity produced will be loaded into the battery and this current helps
run the electric motor that supports the internal combustion engine.
- PHEV: Vehicle combining electric motor and internal combustion engine. With this type of
vehicle, electricity will be charged directly into the battery to provide power for a larger electric motor.
- BEV: Vehicles that only use electric motors, not internal combustion engines. Vehicle models
that use larger electric motors will help provide better starting ability because the characteristic of
electric motors is to achieve extreme torque. great at low rpm. But the quick start will accelerate tire
wear and reduce tire mileage by 1/3 compared to before.
Vietnam's electric vehicle market is still in the initial stage of development. Vinfast is the first
automobile manufacturer in Vietnam to produce battery cars. The total sales volume of electric vehicles
in Vietnam still accounts for a small part of the total car sales in the whole market, but due to the
successful launch of Vinfast, there has been a significant increase recently. Besides Vinfast, other car
manufacturers have started to sell electric vehicle products, but in terms of imports: Porsche, Tesla,
Mazda, Audi, Nissan, BMW, Ford, Hyundai, Honda, Kia and Mitsubishi. ... most companies only carry
out small-scale distribution, import is the main thing, and the sales volume is limited. This is a cautious
move by auto companies, because it is the early stage of the development of Vietnam's electric vehicle
market.

Opportunities and challenges faced by Vietnamese enterprises.

Opportunities

Vietnam's automobile industry has not mastered the core technology since its establishment.
Manufacturers still rely on importing raw materials from Vietnam to assemble finished products. These
problems greatly limit the formation of a solid technical development platform for the automobile
industry. However, objectively speaking, the development of Vietnamese cars, especially electric cars,
is a pity and a golden opportunity that must be seized. Based on factors such as production transfer
trend, technical ability and market preconditions, Vietnam is a country that can develop and transform
the automobile industry, especially electric vehicle production, into a regional advantage. In recent
years, the trend of foreign investors moving their factories out of China is due to the Covid-19 epidemic,
trade wars and other issues. China is controlling the global supply chain, which worries investors. The
Department of Defense needs to find and transfer the supply chain to countries with safer markets.
Vietnam is an ideal place for foreign investors to trust. Japan's Nomura Financial Group said that East
Asia and Southeast Asia were the preferred destinations for 56 companies in 2018-2019. Specifically,
28 enterprises moved to Vietnam.
The challenge:
In fact, there are many challenges in the development opportunities of electric vehicles in Vietnam. The
main concerns are: the ability to master technology and technology; Vehicle price factor; Policy and
legal corridor for developing electric vehicle trade in Vietnam.
Ability to master technology: It can be said that this is the most critical factor for Vietnam's automobile
industry, especially electric vehicles, to surpass and catch up with regional competitors or surpass
Toyota, Ford, General Motors and other large manufacturers that have occupied the market position. At
present, although VINFAST is an automobile factory in Vietnam, it has invested a lot of modern
equipment and offered solid human resources, and plans to develop electric vehicles to occupy the
domestic market and to develop in the United States, Australia and other big countries. However, it
must be emphasized that most technologies and processes still need to be undertaken by foreign expert
teams, rather than by Vietnamese manpower. In addition, the current situation of electric vehicles is
still insufficient, which is a great challenge for scientists, professional engineers and manufacturers in
the world, so that they are still careful to study and solve these problems in the near future. This requires
a lot of money, as well as research ability and original product development experience. This is a big
challenge for the electric vehicle industry in Vietnam.
Factors affecting the price: It is clear that GM in Vietnam is a very expensive product for people. Even
for electric vehicles, the actual production cost is much higher than that of fossil fuel vehicles.
According to the general cost, the maintenance and repair operation cost of electric vehicles is lower
than its normal life cycle. However, this is correct only when the sustainable energy development
technology is completed from power generation mode, infrastructure for providing electricity for
automobiles, in-vehicle power conversion mode, or in other words, battery technology. The current
solutions are not really convincing, because the reliability of batteries has not been proved, and they are
the main obstacles to the production cost and replacement cost.

Core competencies and factors creating competitive advantage

Vietnam's electric vehicle market is still in its early stages of development. According to Association
members, sales of Vietnamese automobile manufacturers will reach more than 400,000 units in 2022,
if sales of VinFast and TC Motor (the unit that assembles and distributes Hyundai passenger cars in
Vietnam) are included. Vietnam), Vietnamese people have bought more than 500,000 cars (not
including car sales of imported car brands, accounting for 30 - 40% of the total car sales in recent years).
The Ministry of Industry and Trade forecasts that the country's automobile demand in 2025 according
to the average plan will be about 800,000 - 900,000 vehicles and by 2030 about 1.5 - 1.8 million
vehicles. When shifting from gasoline to electric vehicles, the demand for electric vehicles will be huge,
with the goal that by 2030, 22% of two-wheeled motorbikes will be electric vehicles. Many large cities
such as Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, and Can Tho have planned to eliminate gasoline
motorbikes in the inner city by 2030. Car market share, data from the Vietnam Register shows that the
electric car market share is currently just over 1%, but is on the rise. If in 2020 there were only 900
electric cars, then in 2021 there will be more than 1,000 cars and in 2022, VinFast's two pure electric
car models alone, VFe34 and VF8, achieved sales of more than 7,000 units (not including monthly data
September - October 2022).
Besides, as a Vietnamese, VinFast always wants to create its own products and not import them from
any other country. VinFast aims for a sustainable future for everyone and everyone. through the
production of green, clean and safe transportation vehicles.
Following its US debut at the 2021 LA Auto Show, VinFast is taking important steps towards a
sustainable transportation future as it announced it will stop producing cars with internal combustion
engines ( ICE) by the end of 2022. VinFast focuses on research and development efforts for fully electric
engines for their vehicles. This makes VinFast one of the first automobile companies in the world to
switch to pure electric vehicle production, affirming its leading position in the global EV revolution.
Increasing manufacturing operations in Vietnam with an on-site complex will provide cost savings and
logistical efficiencies for parts and supplies. Our manufacturing operations in Vietnam have significant
cost advantages for sourcing and components as approximately 60% of electric vehicle components
(excluding batteries) are sourced from local suppliers. Vietnam. Most of them are established
international suppliers, based on the total value of parts manufactured or packaged in Vietnam as a
percentage of total shipping costs as of September 30 /2022. The company currently has several key
suppliers on-site in Hai Phong such as ZF, Forvia and Lear Corporation. VinFast said it is planning to
expand its complex in Hai Phong with suppliers from Korea and China. VinFast has relationships with
about 620 other suppliers globally. One of their most important partners is VinES, a major battery
supplier and in the process of developing battery manufacturing capacity in Vietnam. “We expect
battery cells produced by VinES to eventually be included in battery packs. VinES is in the process of
building a gigafactory (super factory) in the Central region to expand battery pack production capacity.
In addition, VinES is developing a second lithium battery production facility in Ha Tinh, Vietnam, in
cooperation with Gotion."
Technology is at the core of its platform and the company has invested significantly in its technology
platform to deliver the safest possible driving experience for drivers.
Research and development activities and product innovations will differentiate VinFast's electric
vehicle experience internationally with premium features, including infotainment, driver assistance,
ADAS and other improvements. Currently, VinFast's research and development team includes more
than 800 internal staff, experts (including 140 software engineers) and leverages the expertise of
engineers and developers at related technology companies. important in the Vingroup ecosystem.
Forecasting supply and demand and investment capital portfolio of the electric vehicle market
With electric vehicle industry investment projects invested from FDI and DDI capital sources, electric
vehicle industry projects invested in Vietnam are quite regular every year. Although the growth rate is
not uniform. Growth is especially high in 2022 thanks to investment projects in the electric car industry.

Project growth rate

Allocate number of project by quantity

The main investment projects in Vietnam are processing and assembly, accounting for 77% of the total
investment projects. The component production project is mainly used for electric vehicles and has only
emerged in recent years
The project is mainly distributed in northern provinces, especially in Haiphong, Beining, Yongfu, etc.
There are only a few small project investments in Ho Chi Minh City, Pingyang Province in the south.
In the central provinces, only Ha Tinh is the location of the Vinfast battery factory.

Predicting the number of electric vehicles in Vietnam from 2028 to 2040

(Unit: million vehicles)
It is expected that the sales of electric vehicles in the Vietnamese market will at least double this year.
"By 2023, we expect the sales of electric vehicles in Vietnam to increase by 114.8% compared to the
same period last year, reaching approximately 18000 units," said a report released by BMI last week.
It is expected that the sales of pure electric vehicles in Vietnam will increase by 104.4% year-on-year
in 2023, reaching nearly 17000 units. At the same time, sales of plug-in hybrid vehicles (PHEVs) may
increase nine times compared to the same period last year, reaching nearly 1100 units. We now expect
that from 2023 to 2032, the sales of electric vehicles in Vietnam will increase by an average of 25.8%
per year, reaching an annual sales volume of approximately 65000 vehicles, higher than the 8400
vehicles in 2022.
According to BMI's estimation, the penetration rate of electric vehicles (defined as the proportion of
electric vehicle sales to total vehicle sales) will increase to 13.6% by 2030. This is a leap from 2.9% in
2022. Vietnam Automobile Manufacturers Association Forecast.

VinFast's industry

The global economy is expected to continue to recover with the easing of COVID-19 restrictions.
According to Frost & Sullivan, the GDP per capita in major advanced economies, such as the U.S. and
Europe, is expected to increase at CAGRs of 3.5% and 4.2% from 2022 to 2028 which, coupled with
increased spending power lays a solid foundation for the recovery of the global passenger vehicle
market. In addition, the reopening of manufacturing facilities and efforts to restore supply chains should
further increase the production of passenger vehicles in the long run. Frost & Sullivan also expects that
the passenger vehicle shipment is expected to recover to pre-COVID level by 2025 and to reach 79.1
million units in 2028, representing a CAGR of 3.6% from 2022 to 2028. The U.S. and Europe markets
are expected to account for 18.3% and 21.3% of global market in 2028, respectively, according to Frost
& Sullivan.
By offering premium quality EVs with luxury-level features at a competitive price point, we believe we
are well-placed to penetrate our addressable markets, gain market share in the EV market and potentially
convert more ICE customers to new EV users. Our target addressable market (“TAM”)1 which
comprises the overall passenger vehicle markets in the U.S., Canada, Europe and Vietnam, is expected
to reach $1.3 trillion, representing an annual shipment of approximately 34.0 million vehicles by 2028,
according to Frost & Sullivan. Frost & Sullivan also forecasts that passenger vehicles with prices over
$40,000 are expected to become the fastest growing segment, with annual shipment expected to increase
from 15.5 million units in 2022 to 22.9 million units in 2028, representing a CAGR of 6.7% from 2022
to 2028. Vehicles within this price segment can offer more satisfying user experience to customers in
terms of driving performance, interior designs, and value-added services.
We stand to benefit from favorable industry trends in the EV market. We expect to unlock further
growth of the EV market by addressing key pain points in the EV industry including consumers’ anxiety
associated with charging duration and range, limitations on charging infrastructures, cost of battery
ownership and high upfront costs. To address these pain points, we are offering several innovative
solutions. For example, our battery subscription program, which is available in certain select markets
(primarily Vietnam) and models, reduces the burden of battery ownership and lowers the upfront price
of purchasing and owning EVs. Our battery subscription program will also include the provision of a
replacement or repair in case the battery capacity falls under 70% for the duration of the battery lease.
This is expected to further facilitate the adoption of EVs and reduce customer’s anxiety around battery
adoption. Our at-home smart charging solutions coupled with access to a dense charging network
through our e-mobility platform is expected to reduce charging anxiety for customers.
In terms of product portfolio, we anticipate that our focus on electric SUVs will allow us to capitalize
on the strong growth of the electric SUV segments in our focus markets which, according to Frost &
Sullivan, have an estimated CAGR of 35.9% from 2022 to 2028 in terms of annual shipment, and are
expected to increase its market share from 56.1% in 2022 to 71.4% in 2028. At the initial phase of our
global roll-out, our focus will be on the fast growing mid- and large-sized vehicle (C-E) segments.

Growth Trends in the EV Market

The growth of EV market far outpaced the overall market and is expected to further accelerate in the
near term
The share of global EVs as a percentage of total passenger vehicles has increased more than five times
from 2.1% in 2019 to 11.7% in 2022, and is expected to reach 39.2% in 2028, according to Frost &
Sullivan. Frost & Sullivan also reported that the shipment of EVs in North America, Europe and
Vietnam reached 2.1 million in 2022, with a share of 8.1%, and is expected to reach 10.5 million
shipments in 2028, with a share of 31.0%. By 2028, the annual shipment of EVs in the U.S. and Europe
is expected to account for over 30% of the global EV market.

C, D and E EV segments are expected to show particularly strong growth prospects

All EV segments are expected to grow at high double-digits in our focus markets and this trend is
expected to be even stronger for C, D and E segments due to their long driving range, large passenger
space, and attractive interior design, according to Frost & Sullivan. We opened reservations for our VF
5, VF 8 and VF 9 models to capture the fastest-growing A-, D- and E-segments, respectively, in 2022,
and plan to next open reservations for our VF 6 and VF 7 models to capture the rapid growth in the B-
and C- segments. The Eco trims of the VF 8 and VF 9 models with our battery subscription program
are also priced within the cross-over ranges of segments C and D, D and E, respectively, which we
believe can help our cars to capture a larger TAM because of their competitive price points.

Electric-SUV markets outgrow other vehicle types

According to Frost & Sullivan, consumers are more willing to purchase EVs with higher quality and
performance, more intelligent functions, and smarter interior design, which include features such as
longer lasting battery, longer driving range, larger passenger space, ADAS, in-car entertainment, and
4G/5G connectivity. Compared with other vehicle types, electric-SUVs with higher performance
capabilities can better support consumers’ various usage scenarios like family transportation, off-road
driving and long road trips. In our focus markets, the market share of electric-SUVs in relation to the
overall EV shipment is expected to increase from 56.1% in 2022 to 71.4% in 2028, according to Frost
& Sullivan.

EVs within the price segment of $40,000 or above offer better driving experience
As the largest segment in terms of annual shipment, the annual shipment of EVs over $40,000 in our
focus markets is expected to reach 7.1 million units in 2028 at a CAGR of 28.6% from 1.6 million units
in 2022, accounting for a market share of 67.0% in 2028, according to Frost & Sullivan. According to
Frost & Sullivan, EVs within this price segment can offer better driving experience in terms of
powertrain, interior and exterior designs, and overall experience of ownership, which consumers are
increasingly willing to pay for.

Key Industry Tailwinds and Growth Drivers

Development of charging infrastructure

Increasing availability of charging infrastructure has become an industry trend as the EV market
continues to grow, addressing one of the concerns of consumers making the switch to EV. Although
there are various stakeholders, such as OEMs and charging service providers, that are increasing their
investments into charging infrastructure, governments are still key drivers leading the development of
charging infrastructures. For example, in the U.S., the Bipartisan Infrastructure Law will invest $7.5
billion to build a national network of EV chargers. This investment is intended to support President
Biden’s goal of building a nationwide network of 500,000 EV chargers to accelerate the adoption of
EVs. According to Frost & Sullivan, the charging network in the U.S. is expected to expand rapidly
with number of charging points increasing from 0.3 million in 2022 to over 1.6 million in 2028 at a
CAGR of 35.7%. In Europe, between 2022 and 2028, the number of charging points is expected to
expand from 0.6 million to over 2.8 million at a CAGR of 27.9%. Ultra-fast charging is also expected
to be the next generation of charging solutions with majority of global EV manufacturers already
considering ultrafast charging (150 kW to 350 kW), which will reduce charging time from 30 minutes
to 15 minutes.
Increase in battery density and reduction in costs of battery packs backed by enhancement of battery
technologies
In recent years, battery energy density has been increasing mainly due to the application of higher
performance cathode materials, such as high nickel NCM/NCA materials, lithium-rich manganese
bases, and anode materials. In 2019, the energy density of battery cells was only between 217 to 252
Wh/kg. In comparison,currently, the energy densities of a number of battery cells can exceed 300
Wh/kg. Coupled with improvement in operating temperature range, charging efficiency and safety
performance, the increase in battery energy density has significantly improved driving range.
According to Frost & Sullivan, battery cost accounts for 30-40% of the total electric vehicle cost and
pricing is one of the most important considerations for consumers in choosing to adopt EV. With current
improvements in battery technologies, coupled with the ability to achieve economies of scale by battery
suppliers, the average price of NCM/NCA battery cells is expected to decrease from $138/kWh in 2022
to $78/kWh in 2028 and the average price of LFP battery cells is expected to decrease from $114/kWh
in 2022 to $67/kWh in 2028, according to Frost & Sullivan. As a result, the average price of battery
packs is expected to decrease from $187/kWh in 2022 to $112/kWh in 2028, according to Frost &
Sullivan. In order for the price of an EV to achieve price parity with comparable ICE vehicles, it is
broadly estimated that battery pack prices must fall in the range of $100/kWh to $110/kWh, and Frost
& Sullivan estimates that battery production technology will be able to achieve this range between 2027
and 2030.
Favorable policies in our key markets
In the U.S., a number of policies were issued which were favorable for EV. These policies include
raising emission standards, providing government subsidies and increasing consumer incentives for EV
adoption. For example, the IRA is a significant legislation to accelerate mobility electrification in the
U.S. Key provisions of the Act revise and expand tax credits for EVs, which provide a new tax credit
of up to $4,000 for used EVs and extension of tax credits of up to $7,500 for purchasers of eligible new
EVs. Also, OEMs which are planning to establish their production lines in the U.S., such as VinFast,
may be able to benefit from the IRA credits once they start manufacturing in the U.S., gaining certain
competitive advantages. The Safer Affordable Fuel-Efficient (“SAFE”) Vehicles Rule, issued by the
National Highway Traffic Safety Administration (the “NHTSA”) and the Environmental Protection
Agency (the “EPA”), sets fuel economy and carbon dioxide standards that increase 1.5% in stringency
each year from 2021 to 2026. The Clean Energy for America Act also proposed massive tax credits for
EV manufacturers. In addition, the U.S. Government also sets an aggressive target of 50%
electrification by 2030. At the state level, there are also many policies promoting EV adoption. For
example, California Air Resources Board (“CARB”) issued the zero-emission vehicle (“ZEV”)
program, which requires auto manufacturers to produce a certain number of ZEVs and plug-in hybrids
each year, based on the total number of cars sold in California, ranging from 4.5% in 2018 to 22% by
2025. Moreover, California is committed to phasing out sales of new ICE vehicles by 2035.
In Europe, many countries issued policies like the Auto Industry Rescue Plan and the UK Vehicle
Scrappage Scheme to provide subsidies for the purchase of EVs in the United Kingdom. The German
government issued recovery and resilience plan to subsidize the purchase of more than 560,000
decarbonized vehicles and promote the development of charging infrastructure by financing the
installation of 50,000 publicly accessible charging points and 400,000 charging points in residential
buildings. The French government set a domestic production target of two million EVs by 2030.
Similarly, the Denmark government also has set a target to have at least 0.8 million EVs by 2030. In
addition, the EU Parliament has approved bans on new ICE vehicles starting from 2035. The
Netherlands, supported by their national climate policy, has also set an aggressive target of zero-
emission for passenger vehicles by 2030. The Norwegian parliament has decided on a national goal that
all new passenger vehicles and light-duty vans sold by 2025 be electric with zero emission through the
implementation of a green tax system.
The Vietnamese government has proposed policies to reduce the usage of motorcycles, to combat
pollution issues and reduce traffic congestion. The reduction in the usage of motorcycles creates
opportunities for substitute modes of transportation such as EVs. For example, the Vietnamese
government has called for suspension prohibition on use of motorcycles in major downtown areas by
2030 and a ban on any motorcycles that fail to meet the proposed emission standards from accessing
certain areas of Hanoi. To stimulate demand for EV production, a number of preferential tax policies
have also been approved, including a special excise tax exemption and tax reduction. EVs with nine
seats or less are subject to the reduced excise tax rate of 3%, compared to the normal rate of 15%, from
March 1, 2022 through February 28, 2027. In comparison, ICE vehicles with ten seats or less are subject
to an excise tax of 40-60%.
Lower sales cost and direct access to consumers powered by an online-to-offline (“O2O”) sales model
Instead of utilizing the traditional dealership distribution network, new EV OEMs are increasingly
adopting an O2O sales model, where consumers get to experience the vehicles in a physical showroom
and place their orders online with the vehicle delivered to their homes. The O2O sales model, a form of
direct-to-consumer (“D2C”) sales model, is disrupting the incumbent automotive marketing network
and empowers new EV OEMs with unique competitive advantages. The O2O sales model provides new
EV OEMs with significant cost advantages in sales and distribution, leading to higher profit margin and
operational flexibility. Traditional distribution in the automotive industry represents a considerable
portion of the value chain, which costs between 25% and 30% of the vehicle list price according to
Frost & Sullivan. Furthermore, the offline showroom is usually operated directly by new EV OEMs,
which allows for a more direct communication channel between the OEMs and their customers. This is
expected to lead to a better tailored service and user experience. However, there may be some
considerable challenges for OEMs in term of the cost management of O2O sales model when they are
attempting to expand to and fulfill an increasingly larger market in the future.
Lower cost of ownership compared to ICE vehicles
The cost of ownership of an EV includes the initial purchase price and various expenses, including those
related to maintenance, fuel, and charging. According to Frost & Sullivan, compared to traditional ICE
vehicles, the cost of ownership of an EV can be lower due to lower charging costs as compared to fuel
costs, availability of government incentives and lower maintenance costs. Although the purchase price
of EVs is still significantly influenced by battery costs, a battery subscription program similar to ours
helps to reduce the pricing gap between EV and its equivalent ICE models by lowering the upfront cost.
According to Frost & Sullivan, battery subscription programs such as ours could reduce the upfront cost
of an EV by 10% to 30%.
ANALYSIS OF EXTERNAL FACTOR

Macro environment analysis

Global Competitiveness Index Score 2019 (Pacific and East Asia)

Politics and Law

In recent years, Vietnam's business environment has seen improvement. The World Economic Forum's
2019 Global Competitiveness Index ranked Vietnam 67th out of 141 economies, a rise of 10 places
from the previous year, making it the most improved country in 2019 (OECD, 2020). Vietnam's Global
Competitiveness Index score reached its highest level ever at 61.543 points in December 2019 (OECD,
2020).
Recently, the government has taken steps to improve this index. Vietnam has improved the efficiency
of its legal frameworks, particularly concerning structural reforms aimed at increasing foreign direct
investment (FDI). This has helped businesses reduce tax burdens and expedite trade procedures. With
the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) taking effect on
January 14, 2019, the EU-Vietnam Free Trade Agreement (EVFTA) on August 2020, and the Regional
Comprehensive Economic Partnership (RCEP) on January 1, 2021, Vietnam is undertaking reforms to
further enhance liberalization and promote trade and investment.
In recent years, Vietnam has adopted many initiatives and policies for the development of the
automobile industry, particularly encouraging the development of low-emission or zero-emission
vehicles. This is an inevitable trend encouraged in many countries and is also a commitment of the
Vietnamese government towards achieving net zero emissions by 2050.
To leverage the role of tax policies in promoting the development of "green vehicles," the government
has timely introduced tax incentives for electric cars. Starting from March 1, 2022, the government
decided to reduce the special consumption tax by 3% for vehicles with less than 9 seats (previously
amended from 15%) to promote the development of electric cars in Vietnam. Electric cars running on
batteries are also exempted from registration tax for 3 years, starting from March 1, 2023, according to
Decree No. 10/2023/NĐ-CP dated January 15, 2023. In the following 2 years, this tax rate will be 50%
of the tax rate for gasoline or diesel cars with the same seating capacity. These are seen as positive
signals to promote the development of electric cars in Vietnam.
The industrial tax incentive program supporting automobiles has been implemented by the Ministry of
Finance since 2020. Under this program, enterprises are completely exempt from import taxes on raw
materials, supplies, and components for manufacturing or assembling industrial support products.
This policy will be extended until 2027 as stipulated in Decree No. 101/2021/NĐ-CP dated November
15, 2021. The applicable entities include enterprises manufacturing, assembling, or producing
components and spare parts for automobiles.
The policy of reducing special consumption tax on electric cars is evaluated to have a positive impact
on both manufacturing enterprises and consumers. Support from reducing special consumption tax will
help enterprises reduce tax burdens, thereby supplying the market with vehicles at better prices.
Consequently, consumers also have the opportunity to purchase electric cars at a more affordable price.
In the proposed amendment to the Special Consumption Tax Law (expected to be passed in 2024), the
Ministry of Finance is considering adjusting the tax rate for environmentally friendly products.
Currently, the Special Consumption Tax Law stipulates: "Combustion engine vehicles using gasoline
combined with electricity, bio-energy, in which the proportion of gasoline used does not exceed 70%
of the energy consumed," applying a tax rate of 70% of the tax rate applied to similar vehicles as
specified in points 4a, 4b, 4c, and 4d of the Tax Schedule prescribed herein.
The Ministry of Finance stated that the above provision aims to encourage consumers to use
environmentally friendly vehicles, including vehicles with two engines: gasoline and electric. The use
of these vehicles helps reduce emissions into the environment significantly compared to other
conventional cars. However, the Ministry of Finance believes that it is necessary to supplement
regulations specifying electric vehicles charged by separate electric charging systems.
Environment, Social, and Compliance
On January 1, 2022, the new 2020 Environmental Protection Law came into force. The law requires
manufacturers of motor vehicles who discharge wastewater, dust or emission, or hazardous waste to
obtain an environment permit issued by the Ministry of Natural Resources and Environment. The
environment permit imposes various requirements on the manufacturer, including the source and
volume of wastewater, dust or emission, or hazardous waste permitted to be discharged into the
environment; hazardous waste treatment facilities and equipment systems required to be put in place;
the volume of hazardous waste permitted to be treated; and various other environment protection
measures required to be put in place. Under the new 2020 Environmental Protection Law, manufacturers
of batteries with a capacity of 600 tons or 200,000 KWh per year, may also be required to prepare an
Environmental Impact Assessment Report (“EIAR”), subject to certain conditions.
Manufacturers of motor vehicles in Vietnam are also required to collect and separate ordinary solid
waste at the source and enter into a service contract for the collection, transportation and disposal of
solid waste. Where the manufacture generates hazardous waste, it is required to collect and classify
hazardous waste at the source and re-use, recycle or dispose of hazardous waste or enter into a service
contract for the collection, transportation and disposal of hazardous waste.
Manufacturers of motor vehicles in Vietnam are also required to obtain a certificate certifying their
compliance with technical safety quality and environmental protection requirements from the Vietnam
Register, by the regulations on the technical safety and environmental safety inspection in the
manufacture and assembly of motor vehicles issued by the Ministry of Transport of Vietnam.
Manufacturers or importers of recyclable products (including vehicles, batteries, engine lubricants,
tires, and electronic or electric devices) must recycle them according to the mandatory recycling rate
and specifications, except for products and packages that are exported, temporarily imported or
produced or imported for research, learning or testing purposes.
It can be seen that the support policies for the electric vehicle industry in Vietnam have been initially
formulated and implemented, based on the existing system of regulations and policies for internal
combustion engine vehicles. Especially, with the tax incentives and registration fee waivers, consumers
can significantly reduce a substantial portion of costs when purchasing electric cars. For manufacturers,
tax incentives encourage businesses to increase investment in the production and assembly of electric
cars powered by batteries. Among them, Vinfast, an electric car manufacturer, is one of the
beneficiaries.
However, compared to other countries in Southeast Asia or globally, the aforementioned policies are
still relatively modest. Many experts have noted that, among the various support policies for electric
vehicles, the most rapidly effective policy is subsidy. This policy comprises two parts: subsidies for
manufacturers and cash subsidies for buyers. This has been successfully implemented in countries such
as the US, EU, and even in Southeast Asian countries like Thailand. Thailand implements subsidies on
special consumption tax for imported electric vehicles (BEVs) and domestically produced BEVs
depending on the retail price and battery capacity, with subsidies ranging from $1,880 to $3,880 per
vehicle.
Moreover, other countries in Europe also implement priority policies for electric vehicles in urban areas
such as exemption or reduction of parking fees, inner-city entrance fees, etc. Although the subsidy
amount per vehicle unit may not be substantial, these policies still create a strong effect on consumers,
encouraging them to buy electric vehicles to enjoy more benefits compared to traditional internal
combustion engine vehicles.
Vietnam has almost no other support policies regarding credit, investment, or trade for businesses
operating in the electric vehicle sector. One of the challenges of implementing credit for electric vehicle
development is that electric car projects often require large, long-term capital, necessitating banks to
have large and long-term capital reserves.
Estimates show that the production cost of electric cars compared to traditional internal combustion
engine vehicles of the same size is still about 45% higher. This barrier makes many Vietnamese
enterprises hesitant to switch from internal combustion engine vehicles to electric vehicles, except for
leading Vietnamese manufacturers such as Vinfast, THACO, TC Motor, or recently Geleximco Group.
Therefore, in the future, Vietnam can consider applying special consumption tax policies for cars based
on CO2 emissions. This is a policy that has been successfully implemented in many countries
worldwide to limit environmentally polluting production activities, prioritize the development of
"green" industries, create fairness in tax policies, and not affect state budget revenue.
At the same time, there is a need to increase amenities for electric vehicles through the installation of
charging stations, coupled with incentive policies and support for charging station operations;
constructing battery manufacturing plants to reduce the cost of electric vehicles. The positive outcome
of these policies is the reduction of electric vehicle prices, becoming more affordable for consumers,
along with specific incentive mechanisms that will contribute to changing consumer habits, creating
stable and long-term demand for the market.

Risks Related to Vietnam

There are risks associated with investments in companies with operations in Vietnam, including in
relation to political, economic and legal conditions.
Currently, substantially all of VinFast’s assets are located in Vietnam. As a result, future political,
economic, legal and social conditions in Vietnam, as well as certain actions and policies that the
government may or may not take or adopt, could materially and adversely affect VinFast’s business,
financial condition, results of operations and prospects. The laws and regulatory apparatus affecting the
Vietnamese economy are evolving with continuing improvements and increasing transparency but are
still not as well established as the laws and regulatory apparatus of regions such as Western Europe and
the U.S. laws and regulations may be interpreted and enforced differently in different provinces across
Vietnam. Policy changes and interpretations of applicable laws may produce unexpected consequences.
In addition, corporate government and shareholders’ rights, uncertainties and limitations remain in
Vietnam in relation to the interpretation and enforcement of laws. Major tax laws and regulations in
Vietnam have undergone significant changes in the past decade and may continue to be amended,
supplemented and clarified in the future. VinFast cannot predict when Vietnam’s legal system will
obtain the level of certainty and predictability of other jurisdictions with more developed legal systems.
Any adverse changes in VinFast tax status in Vietnam or tax laws, regulations or policies in Vietnam
could adversely affect VinFast’s business, financial condition, results of operations and prospects. In
addition, relevant authorities may take different interpretations of tax laws than VinFast does, leading
VinFast to incur costs or liabilities.
The performance and growth of VinFast’s business in Vietnam is dependent on the health of the overall
economy of Vietnam, and in particular, the automotive market and consumer demand as well as strong
credit growth. Vietnam’s economy has been subject to significant fluctuations in the past, and any
estimates or projections of future economic growth in Vietnam are subject to potential risks and
uncertainties. The Vietnamese economy may also be adversely affected by external factors, including
the monetary policy changes implemented in the U.S. and Europe. In recent months, prompted by rising
benchmark U.S. dollar interest rates and a strengthening U.S. dollar, the central bank of Vietnam has
raised policy rates, whilst the Vietnamese Dong has weakened against the U.S. dollar. The local
economy is also seeing tightening liquidity as a result of these rate hikes and the Vietnamese
government’s move to increase oversight over corporate bond issuances and refinancing, which resulted
in certain criminal investigations. In addition, market volatility has increased, including softness in the
real estate sector, which could adversely impact Vingroup and its subsidiaries.
Asset realization in bankruptcy proceedings may be time-consuming and expensive.
Despite the improved Vietnamese law on bankruptcy that came into effect on January 1, 2015, there is
significant uncertainty on its implementation and interpretation due to lack of regulatory guidance and
political sensitivities. Accordingly, the bankruptcy process in Vietnam may be complex, uncertain and
time-consuming. After bankruptcy is declared, the general meeting of creditors may, subject to certain
provisions of law, decide to apply either business rehabilitation or asset liquidation on the enterprise.
However, in the event that any creditor or any participant in the general meeting of creditors has any
objection to the resolution passed by the general meeting of creditors, it can request for a judicial review
of the resolution. Upon review, the judge may convene another general meeting of the creditors if he
finds reasonable grounds to do so. The decision to apply either business rehabilitation or asset
liquidation on the enterprise must be confirmed by the judge before being implemented by the parties.
Due to these complexities, a significant amount of time may pass before a creditor is able to recover
from a Vietnamese debtor.

Vietnamese foreign exchange control may limit VinFast’s ability to utilize its revenue effectively and
affect its ability to receive dividends and other payments from its Vietnamese subsidiary.
VinFast operations are also based in Vietnam and therefore faces the risk of foreign exchange controls
limiting its ability to receive dividends from its Vietnamese subsidiary. At present, foreign-invested
enterprises in Vietnam are, subject to conditions, generally permitted to exchange Vietnamese Dong
into foreign currency at credit institutions licensed to provide foreign exchange services in Vietnam to
repatriate profits and make outward remittances of foreign currency for the purchase of supplies and
services, among others, provided that such foreign invested enterprise declares the intended use of the
money and provides appropriate supporting documents. Such remittances are restricted to being made
through registered accounts at authorized banks which are licensed to operate in Vietnam, and profits
must first be converted into foreign currency prior to remittance. While under the Vietnamese
government’s current foreign exchange policy, there is a low risk of foreign exchange controls
restricting VinFast’s ability to freely utilize its revenue and to receive dividends from its Vietnamese
subsidiary, there is no assurance that the Vietnamese government will not, in future, extend its foreign
exchange controls to restrict or prevent profits from being repatriated by foreign invested entities. Such
a change would limit VinFast’s ability to receive dividends from its Vietnamese subsidiary, through
which all of VinFast’s revenue is generated, and would cause a material and adverse effect on VinFast’s
business, financial condition and results of operations.
Investors may face difficulties enforcing foreign court judgments against VinFast.
A substantial part of VinFast’s Group’s assets is located in Vietnam. It may be difficult for investors to
enforce against VinFast judgments obtained from courts outside Vietnam about any actions about its
assets located in Vietnam. In addition, certain of VinFast’s directors and officers are residents of
Vietnam and Singapore, and the majority of the assets of such persons are located in Vietnam. As a
result, it may be difficult for investors to effect service of process upon Vietnam-resident directors and
officers, or to enforce against them judgments obtained in courts outside Vietnam predicated upon the
laws of jurisdictions other than Vietnam. Vietnam is a party to the New York Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, and a few bilateral treaties relating to the
recognition and enforcement of foreign courts’ judgments but not to any other multinational treaty in
this regard. Vietnam’s Civil Procedure Code provides that a civil judgment or decision of a foreign
court is enforceable in Vietnam only if there is a treaty in this regard between Vietnam and such foreign
country or on a reciprocal basis or if permitted by Vietnamese laws. Vietnam’s Civil Procedure Code
also sets out several grounds for Vietnamese courts to refuse the recognition and enforcement of foreign
judgments, decisions or even foreign arbitral awards.
Under Vietnam’s Civil Procedure Code, a judgment of a foreign court will not be recognized and
enforced in Vietnam where, among others, the competent Vietnamese court in which the recognition
and enforcement is requested determines that the recognition and enforcement of such judgment in
Vietnam is contrary to the “fundamental principles of the laws of Vietnam.” Such term is not clearly
defined and is subject to the discretion of the relevant Vietnamese court.
Economy, Population, Labor

Overall economic situation

Looking back at the economic story after more than 35 years of renovation, particularly Vietnam's
diplomatic story as our country continuously signs comprehensive strategic partnerships with countries,
economic powerhouses around the world, with the most recent being the elevation of Vietnam-US
strategic partnership in September 2023, which somewhat contributed to the momentum of economic
development. Below is a statistical table of Vietnam's economic growth rate from 2019 to 2023, a period
considered significantly influenced by the Covid-19 pandemic.
A particularly challenging period for the global economy, including Vietnam. Just as our economy was
gradually entering a period of rapid growth, the Covid-19 pandemic unexpectedly struck, significantly

impacting the state's policies and decisions regarding the country's economic development. As the
Covid-19 pandemic began to spread globally in the period from 2020 to 2021, with many countries
continuously shutting down their economies to prevent the spread of the disease, Vietnam, with the
unanimous support of the entire Party and people, contributed to the pandemic prevention efforts,
leading to stable economic growth during what was considered a global economic crisis. Although it
was the lowest growth rate in the period from 2019 to 2023, given the complex developments of the
Covid-19 pandemic and its negative impacts on all economic and social sectors, Vietnam's achievement
of one of the highest growth rates in the world in 2020 was a significant success. Our economy showed
signs of post-Covid-19 recovery as the economic growth rate in 2022 remained high at 8.02%, which
is a promising sign for the country's economy. Alongside the economic resurgence, the conflict between
two countries, Russia and Ukraine, somewhat affected the global economy, including Vietnam. The
conflict between the two nations had a significant impact on the country's post-pandemic recovery, as
continuously rising oil prices in 2022 greatly affected the restoration and development of the commerce
and service sectors, with the logistics industry being the most affected. The following image illustrates
the inflationary trend in fuel prices in Vietnam in 2022.
Vietnam Gasoline Prices in 2022
(Unit: VND/Lit)
In less than a year, the price of gasoline in Vietnam has at times doubled compared to the same period
in 2021. While the government and state have intervened in fuel prices to stabilize them and alleviate
some difficulties for the people, it has still posed challenges, as well as contributed to post-pandemic
economic development. However, this has significantly impacted vehicles running on gasoline or
diesel, creating considerable pressure on both travel and transportation needs. Consequently, the
continuous increase and hitting of record prices for gasoline and diesel have somewhat driven up interest
and usage of the electric vehicle market, with VinFast consistently introducing electric vehicle models
to meet the timely demands of the people, contributing significantly to the country's economic
development.

According to data from the General Statistics Office of Vietnam, as illustrated in the following statistical
chart:

Regarding the inflation rate in our country during the period 2019-2023, despite being heavily impacted
by the Covid-19 pandemic, Vietnam's inflation rate has consistently maintained stability at below 4%
per year. This is a promising sign indicating that our Party and State have effectively controlled price
stabilization. When a country's inflation rate increases too rapidly, it can disrupt the market, erode the
real value of the currency, and lead to higher prices, thereby increasing production costs and affecting
consumer purchasing power. Conversely, if inflation remains stable, VinFast has the opportunity to
develop and create a stable environment with less price volatility and costs.

Fuel prices: Gasoline prices rise, EV battery prices fall.

Throughout the early 1800s, a series of technological breakthroughs in batteries and motors supported
the emergence of the first electric vehicles. However, with the discovery of oil in Texas, gasoline
became cheap and readily available to many, while electricity was only found in major cities. Over the
next 30 years, electric cars did not make significant progress, and by the mid-1930s, they had almost
entirely disappeared from the US automobile market.
However, since the beginning of 2022, global and Vietnamese oil prices have experienced multiple
increases due to supply-demand imbalances and geopolitical tensions. In less than a year, gasoline
prices in Vietnam have at times doubled compared to the same period last year. This has significantly
impacted gasoline-powered vehicles and also spurred customer demand for the electric vehicle market.
Due to technological advancements and large-scale production of EV batteries, the cost of EV batteries
has decreased over the past decade. This has led to a reduction in the cost of electric vehicles since EV
batteries are one of the most expensive components of electric vehicles. In 2010, the price of EV
batteries was around $1,100 USD per kWh. However, by 2020, their price had dropped to approximately
$137 USD per kWh, with prices as low as $100 USD per kWh in China. This reduction is attributed to
the decreased manufacturing costs of these batteries, decreased prices of cathode materials, and
increased production volumes, among other factors. The price of EV batteries is expected to decrease
to around $60 USD per kWh by 2030, significantly lowering the cost of EVs and making them cheaper
than conventional ICE vehicles.
The development of the electric vehicle industry: Racing towards technology and price
Demand and consumer trends: Social and environmental trends can also impact the electric vehicle
business. The increasing demand for environmental pollution reduction and the use of sustainable
transportation modes can create a large market for electric vehicles.
Economic conditions, fuel prices, government policies, the development of the automotive industry,
and consumer demand are important factors influencing the electric vehicle business in Vietnam.
Businesses need to monitor and reflect on these factors in their business strategies to capitalize on
opportunities and cope with challenges.

Population and Labor

According to the General Statistics Office (2023), Vietnam's population has reached the milestone of
100 million people, making it the third most populous country in Southeast Asia (after Indonesia and
the Philippines) and the 15th in the world. This is a significant figure in the context of economic

integration and global competitiveness, as countries worldwide value human resources as a tool to
enhance national competitiveness. As of June 1, 2023, the population of Ho Chi Minh City, a city
considered to be the largest and most developed in Vietnam, is nearly 8.9 million people (According to
the report of the Ho Chi Minh City Department of Health). This presents both a challenge and an
opportunity for VinFast to conduct business in the most populous city in the country.
Statistics on the number of people in Vietnam within the working age group, known as the "golden
population" period of our country's population, so VinFast is focusing heavily on this large market.
According to data from the General Statistics Office of Vietnam, the average income per capita in our
country has consistently remained stable and increased gradually over the years.
Looking at the table above, we can see that the average income per capita in Vietnam in 2023 is $4,284
USD per person per year, which is 10.02% higher than in 2022.
During the period from 2019 to 2021, Vietnam's average income per capita showed signs of slow growth
due to the significant impact of the Covid-19 pandemic. However, there was a notable acceleration in
2022, marking a recovery in the standard of living and population. This is a positive sign indicating an
improving quality of life for the people, and as recreational activities, including travel, become more
prevalent, it presents an opportunity for VinFast to seize and develop its electric vehicle line, which is
considered one of the company's strengths..

According to statistics, the car ownership rate in Vietnam is still much lower compared to other
countries in the region, standing at only 46 cars per 1,000 people. This figure is only one-tenth of
Thailand's and one-twentieth of Malaysia's. This is seen as an opportunity for automobile manufacturers
to invest and develop production in Vietnam.
The pace of car ownership growth is a crucial factor for the automotive industry, one of the most
important industries contributing to the success of many developed countries. In Japan, according to
statistics, there are 68.9 million registered cars, meaning that every 2 Japanese people own one car. In
South Korea, with a population of nearly 52 million, there were 25.07 million registered cars by the end
of March 2022, equivalent to 487 people owning a car per 1,000 Koreans, according to data from the
Ministry of Land, Infrastructure, and Transport.
The most populous country in the world, China, currently has 302 million cars in circulation. Therefore,
the average number of cars per 1,000 people is over 200. In contrast, this figure is 98 in Singapore and
46 in Vietnam. Thus, the number of cars per capita in Vietnam is still relatively low compared to
developed countries in the region.
The pace of car ownership growth is a crucial factor for the automotive industry, one of the most
important industries contributing to the success of many developed countries. Along with the positive
signals from Vietnam's average income per capita, it is anticipated that in 2024 and the years to come,
the automobile industry, including electric cars, will experience significant growth in the Vietnamese
market as the country increasingly integrates with major countries worldwide.
Vinfast - Impacts of Macroeconomic Factors and COVID-19 Recovery
Global economic challenges, including the impact of the COVID-19 pandemic and the conflict between
Russia and Ukraine, have contributed to rising inflation, significant increases in fuel costs, supply-chain
disruptions, and adverse labor market conditions. For example, the conflict between Russia and Ukraine
has had a global impact on the supply and price of fuel and has contributed to increased inflation around
the world.
Our business demonstrated resilience and continued growth in 2020 and 2021 despite temporary
disruptions during periods of short-term spikes in COVID-19 cases. In 2021, our revenue from sales of
vehicles increased 18% against the preceding year. The resilience of our business over the past two
years reflects our successful adoption of new sales methods that prioritize consumer safety, such as our
online consultations, offline-to-online shift in sales strategy, test drive at home program and home
delivery service. These new sales methods resulted in operational expenses savings in 2021. We have
also benefitted from various government support initiatives, including extensions for tax payments
(special consumption tax resulting in a lower tax rate in Vietnam), and lower interest rates from
commercial banks.
Vietnam experienced five major waves of COVID-19 infections over 2020 and 2021 across the country:
the first in March and April 2020, the second in July and August 2020, the third from January to March
2021, the fourth from May to June 2021, and the fifth in July and August 2021. Each wave resulted in
containment, social distancing, lockdown measures, border closures, cancelations of gatherings and
events and closures of schools, universities, restaurants, stores and other businesses, nationally or
regionally. In turn, these measures caused short-term operational disruptions to our business. For
example, during the height of the lockdown, we experienced difficulties hiring foreign workers due to
more restrictive government-imposed regulations and policies related to expatriate and foreign worker
permitting, and the resulting reluctance on the part of potential or existing employees to travel across
borders. In addition, due to government-imposed lockdowns that created work permit issuance and
renewal delays at relevant authorities, a small number of our foreign workers located in Vietnam were
not able to timely obtain or renew their necessary work permits. We have since obtained or renewed all
requisite work permits for these employees. The fourth wave of infection in 2021 also led to delays in
planned showroom rollouts and showroom closures in the third quarter of 2021. Nevertheless, 2021
third quarter sales of our three most popular ICE vehicle models, the Fadil, Lux A and Lux SA, were
approximately four times higher than our monthly sales average for the year 2020.
As a result of both COVID-19 pandemic and the conflict between Russia and Ukraine, we have
experienced disruptions to and delays in our operations, including shortages and delays in the supply of
certain parts, including semiconductors and other materials and equipment instrumental to the
production of our vehicles. In response, we have adapted various internal designs and processes to
mitigate the impact of such disruptions and delays on our production timeline, which has resulted in
higher operating costs. For example, we took a dual-design approach to chip integration, which has
allowed us to achieve the same functionality across vehicles with a variety of chip manufacturers. We
have implemented COVID-19 prevention measures and ensure that all of our employees are fully
vaccinated. We have also increasingly adopted automation technologies in our facilities to reduce our
reliance on manpower and the risk of production stoppages and delays. Furthermore, in order to prevent
supply shortages, we worked closely with our partners to place advance orders for certain key
components in 2020, 2021 and 2022, and retained multiple strategic partnerships with our external
suppliers by leveraging our buying power of our broader Vingroup ecosystem. Finally, although we
have not experienced cybersecurity attacks in our supply chain due to the conflict between Russia and
Ukraine, we have implemented additional monitoring and defense solutions for our networks, device
applications, data, system processes and users.
As Vietnam emerged from the pandemic in 2022, re-opened its economy and removed most of its
COVID-related restrictions, the pandemic did not have a significant impact on our business or results
of operations for the year ended December 31, 2022 and the three months ended March 31, 2023.

Cultural and Community

Nowadays, life has seen many changes and developments, with cars becoming a new standard that
many Vietnamese aspire to. Cars are not just a measure of success but are also considered valuable
assets by the Vietnamese people. With a difference in usage needs and a mentality that views cars more
as assets than means of transportation, Vietnamese individuals are displaying a paradox, albeit not
universal, but prevalent in their car choices.
The majority of Vietnamese car buyers make their decisions based on crowd psychology rather than
carefully comparing and contrasting options based on criteria such as design, technology, and practical
usage needs. Car buyers in Vietnam often conform to a herd mentality in their choices, leaning towards
viewpoints that favor the majority. This is one of the factors contributing to the dominance of the
Vietnamese car market. In the same segment, there are numerous equivalent choices in terms of
technology and feature equipment, but only one or two models truly succeed in the market.
Taxes and fees play a dominant role in pushing car prices in Vietnam higher compared to other countries
worldwide. In reality, Vietnamese consumers tend to prioritize economic value, brand value, and resale
potential over utility features and driving experience that the vehicle provides.
When cars are seen more as assets than transportation, many buyers focus more on aesthetics rather
than utility and safety features that the car provides for themselves and their families. Many are willing
to spend extra money on accessories that do not significantly enhance usability, such as plastic bumper
covers, fuel tank caps, headlight trims, and exhaust pipe covers, to "beautify" their cars, while neglecting
essential amenities like seats, air conditioning systems, or even safety systems like ABS brakes,
electronic stability control, and airbags in the vehicle. In the United States and European countries,
besides design aesthetics, criteria related to comfort and safety technology are always paramount to
consumers when choosing between car models.
Although the production of electric cars is increasing, there are still many reasons why the transition
from traditional gasoline and diesel cars to electric cars faces difficulties, including issues with battery
technology and operating range. This is considered the biggest challenge for electric cars, as battery
technology still has many drawbacks. The limited operating range of electric cars due to suboptimal
batteries has made electric cars less convenient than internal combustion engine vehicles. In addition to
cost reduction goals, manufacturers are racing to expand charging station networks and increase the
operating range of electric cars. With a charging station network still not widespread and the reliability
of electric motors not yet high, enthusiasts who love off-road adventures are hesitant to choose electric
cars for conquering challenging terrains in remote areas.
Electric cars still have many disadvantages. Most electric cars currently can only run for a little over
200 km on highways (at a maximum speed of 130 km/h) under normal usage conditions, such as
carrying multiple passengers, heavy loads, or using air conditioning. When the battery is depleted,
finding a charging station for the car becomes a major issue, and the charging time also takes several
hours, although manufacturers have somewhat improved the charging time and battery charging
capacity.
There are many unfavorable conditions for electric cars to thrive in Vietnam. The first thing to mention
is that electric cars have not yet met the needs of consumers. In Europe and the United States, electric
cars are developing rapidly because they are primarily used in cities and are often secondary or tertiary
vehicles in households. However, in Vietnam, families with more than one car are rare. Electric cars
for Vietnamese people are like gasoline or diesel cars; they must be versatile, meaning they can be used
in cities, travel to destinations like Da Lat or Nha Trang, and are convenient everywhere without having
to stop and wait for a long time to charge.
Looking at the chart on the usage habits of various transportation modes among Vietnamese people, we
can see that the majority, 86.84%, use personal motorcycles, while only about 3.33% of Vietnamese
people use cars. The number of Vietnamese people using personal motorcycles is nearly 26.06 times
higher than the number of people using cars. So why do Vietnamese people tend to own personal
motorcycles so much? Perhaps it is due to the psychological issue that most Vietnamese people have
been striving to have their own land plots since ancient times, so they prefer private houses. Another
reason is that for some people, if they live in apartments, using motorcycles involves fewer hassles than
driving cars, especially when it comes to parking motorcycles, which is simpler and cheaper than
parking cars in apartments. In addition, the issue of transportation infrastructure in our country is still
not synchronized in some places, and traffic congestion often occurs during peak hours, so Vietnamese
people tend to choose motorcycles for convenience in transportation.

It can be seen from the chart below that Vietnam is paying attention to the issue of electric vehicle
usage, especially considering the incentives provided to customers purchasing electric cars, which are
currently at a relatively high level of around 45.44%. Following this, the incentives for purchasing
hybrid cars are also at a relatively high level, close to 23.51%. These survey results indicate that
Vietnamese individuals have a tendency to seek out incentives and prioritize the usage of products that
offer more incentives compared to those with fewer incentives.
Looking at the survey table below, we can partially understand the decision criteria when choosing to
purchase a car. The factors that Vietnamese individuals prioritize when selecting a new car are as
follows: product quality accounts for 64%, car features account for 52%, brand image of the product is
at 48%, followed by the overall ownership experience quality at 41%, car performance at 37%, and
lastly, brand familiarity at 36%. Additionally, Vietnamese people also care about other factors such as
past service experience (33%), brand advertising (32%), ..

The chart above illustrates the willingness to pay of consumers for electric cars in some Southeast Asian
countries in 2020. Looking at the chart, we can see that the willingness to pay is lower than the average
price of a mid-range car in Malaysia, which has the highest proportion at 47%. Next are Thailand and
the Philippines at 39%, followed by Indonesia at 23%, and finally, Vietnam with only about 9%.
Following that, the proportion of consumers who would pay the same as the average car is highest in
Singapore at 65%, followed by Indonesia at 61%, Thailand at 55%, the Philippines at 48%, Vietnam at
47%, and lastly, Malaysia at 43%. The proportion of consumers who would pay more than the average
car is quite high in Vietnam at 38%, while it is below 15% for the other countries. Lastly, the proportion
of consumers who would pay a premium price is very low across all countries, with most being below
or equal to 3%.
The chart partly shows us that the willingness to pay of Vietnamese consumers mostly focuses on two
main factors: paying the same as the average car and paying more than the average car. This presents
an opportunity for large car manufacturers to capitalize on and aggressively promote their products in
the Vietnamese market.
Looking at the survey, we can see the level of awareness and interest in electric cars among the people
of Vietnam. 99.4% of the Vietnamese population have heard of electric cars, and a whopping 82% are
interested in them. However, the number of people who are very interested in and have done research
on electric cars is quite low, accounting for only 31%. So what factors have led people to show less
interest in researching this field? Could it be related to income, habits, culture, or infrastructure factors
in the country?
The chart illustrates the willingness to purchase electric cars within the next 12 months among the
people of Vietnam based on their level of interest and awareness. Regarding the "very interested in and
have done extensive research on electric car" factor, the proportion of those willing to purchase an
electric car is the highest, accounting for 46.08%. For those categorized as "interested in and have done
research on electric car," the highest proportions are seen in "considering to purchase an electric car in
the next one year" and "will not purchase an electric car in the next one year," with rates of 36.6% and
32.8% respectively. Lastly, for the group classified as "have heard but have not done research on electric
car," all three factors—"considering to purchase an electric car in the next one year," "will not purchase
an electric car in the next one year," and "will not purchase an electric car"—have relatively high
proportions, with rates of 33.53%, 31.18%, and 32.94% respectively.
 Science, Technology
In recent years, electric car batteries have undergone significant development, ushering the automotive
industry into a new era of energy efficiency and environmental protection. Lithium-ion battery
technology has been improved with increasing energy storage capacity, allowing electric cars to travel
longer distances without needing frequent recharging.
Not only has the energy storage capacity increased, but the efficiency of electric car batteries has also
improved significantly. New materials and optimized structures have enhanced the ability to convert
electricity into mobility, resulting in improved performance and reduced energy consumption per
distance traveled, thereby saving energy and reducing emissions.
Charging technology is also a highlight of this development. Fast-charging technologies such as CCS,
CHAdeMO, and ultra-fast charging systems have significantly reduced charging times. Users no longer
need to wait long to fully charge their batteries for the next journey.
Another important aspect is the lifespan and durability of batteries. New technologies have extended
the lifespan of batteries and reduced capacity degradation after each charging cycle. This not only helps
users save maintenance costs but also increases the stability and reliability of electric cars.
Moreover, the cost of electric car batteries is gradually decreasing. Modern manufacturing technologies
and economies of scale have helped reduce production costs, making electric cars more popular and
accessible to consumers.
Overall, the development of electric car batteries is not only a significant advancement in automotive
technology but also a crucial contribution to environmental protection and the creation of a cleaner,
more efficient transportation system for the future. Numerous breakthroughs have been made to
improve lithium-ion batteries. For instance, a new technology from Warwick allows lithium-ion
batteries to be charged five times faster than current methods. Scientists at Texas A&M University have
used carbon nanotubes in the electrodes of lithium metal batteries, reducing charging time. This new
technology is further developed by creating a dense interconnect layer between the battery electrodes.
Meanwhile, in February 2018, researchers at Shinshu University, Japan, announced the use of lead
dioxide positive electrodes instead of silicon, despite their significantly greater energy density (10
times). However, silicon-positive electrodes have high fluctuations that make them unstable. By
September 2021, engineers at the University of California found a solution by replacing the liquid
electrolyte with a solid sulfur-based electrolyte.

Volkswagen and Toyota plan to use solid-state batteries. Electric cars typically use lithium-ion batteries,
which have limitations in charging time and capacity. Companies like Bolloré, Volkswagen, Toyota,
and the Renault Nissan alliance are switching to investments in solid-state batteries to reduce leakage
and fires, increase lifespan, and reduce heavy cooling systems. Toyota plans to use this type of battery
for all their cars by 2025. John Goodenough announced solid-state glass electrolyte batteries with three
times the energy density of lithium-ion batteries. This new technology has lower costs because it uses
sodium from seawater. Harvard University has developed a solid-state lithium metal battery that can be
charged 10,000 times, extending the lifespan of electric vehicles to 10-15 years, with a full charge in
10-20 minutes. Osaka Metropolitan University has made significant improvements with the high-
temperature phase of Li3PS4, improving ion conductivity at room temperature.
Aluminum-ion batteries catch up due to lower density. In April 2015, a research group at Stanford
University developed aluminum-ion batteries that are safer, faster charging, and environmentally non-
polluting compared to lithium-ion batteries.
In March 2016, a research group in China made progress with AGDIB aluminum-graphite batteries,
with higher energy density and reduced weight, volume, and manufacturing costs.
In June 2021, GMG Australia announced graphene aluminum-ion batteries charge 60 times faster and
contain three times the energy of the best aluminum batteries, produced by the nano technology of the
University of Queensland.
Lithium-sulfur batteries can still achieve higher lifespans. Lithium-sulfur (Li-S) batteries have twice
the energy density of lithium-ion batteries and can travel 450km per charge. The main drawback is
degradation after a few charges, but researchers at Lawrence Berkeley National Laboratory have
improved them by using graphene oxide, increasing power by at least 1,500 cycles without loss of
efficiency. OXIS Energy in the UK and Cambridge University have developed Li-S batteries with five
times the energy density of lithium-ion batteries. Monash University redesigned the sulfur negative
electrode to allow electric cars to travel 1,000 km without recharging. The Cockrell School of
Engineering at the University of Texas created a layer containing Tellurium in the battery to quadruple
its lifespan. Brighsun New Energy has prevented polysulfides on sulfur negative electrodes, maintaining
91% power after 1,700 cycles. The US Argonne National Laboratory has created a foam layer
containing sulfur in the battery to protect the material, allowing the battery to be charged and discharged
700 times, competing with lithium-ion batteries.
Smart membranes prevent charge leakage in EV batteries. New 'smart' membranes prevent charge
leakage in batteries and allow fast charging. Developed by Ohio State University in August 2016, this
technology is inspired by living cell membranes and controls the flow of charge in batteries. This
membrane is expected to lead to 'solid-state oxygen reduction oxidation batteries' for electric vehicles,
storing energy in a rechargeable liquid electrolyte like a gas tank. In January 2022, the University of
Michigan announced it had developed a membrane that increases the charging capacity of electric car
batteries by up to 400%, made from bio-based Kevlar.
Electric car manufacturing technology is undergoing significant development to meet the increasing
demands of the market. Advanced technologies are being applied from the design process to the final
manufacturing process.
One of the key technologies is the use of lightweight materials and strong load-bearing structures.
Electric cars are typically made from aluminum alloys and high-strength steel to reduce weight while
ensuring safety and robustness. By using these materials, manufacturers can optimize energy efficiency
and increase the mobility of vehicles.
Battery technology is also a critical factor. Lithium-ion batteries are currently the most common
technology in electric vehicles, but solid-state batteries such as aluminum-ion and lithium-sulfur (Li-S)
batteries are the focus of research and development. These types of batteries have higher energy density,
longer lifespan, and shorter charging times, enhancing the performance and range of vehicles.
Additionally, clean and energy-efficient manufacturing technologies also play an important role. The
production process uses renewable energy sources such as solar and wind power to reduce emissions
and environmental pollution. Manufacturers are also applying more efficient production processes to
reduce material waste and optimize assembly processes.
Overall, electric car manufacturing technology is advancing rapidly to provide safe, energy-efficient,
and environmentally friendly products for consumers.

ANALYSIS OF INTERNAL FACTOR

Micro environmental analysis

The microenvironment analysis of the "Electric Vehicle" industry will be conducted through M.E.
Porter's five forces model, encompassing five evaluative factors: current competitors, potential
competitors, customers, suppliers, and substitute products. The results of this analysis will provide
insights into the characteristics and level of competition that businesses will encounter when engaging
in the electric vehicle business..

The current competitive

Vinfast - Competitive Landscape in the Global Passenger Vehicles Market

Strong receptivity to foreign brands in our focus markets
The U.S. market has been very receptive to foreign automotive brands and has been importing cars from
other countries, particularly Asia, for decades. According to Frost & Sullivan, in North America, 74.2%
of passenger vehicles were foreign brands in 2022. Asian brands in particular have achieved notable
success in our focus markets and accounted for 52.6% of total passenger vehicle shipment to the U.S.
market in 2022.
According to the F&S Customer Survey, over 59.7% of the U.S. based respondents (328 out of 549)
indicated that they have either a preference for foreign brands or no preference between foreign and
domestic brands.
New EV brands are emerging with more focus on customer experience and technology
With continuous investments in charging infrastructure and innovations in charging technologies, the
overall charging network and charging efficiency have improved significantly compared to the first
time EVs entered the market more than 10 years ago. As such, new EV brands today are able to utilize
relatively well-established charging networks instead of relying completely on building their own
proprietary charging infrastructure as their predecessors did.
As the consumers’ attention shifts from driving range and charging facilities to in-car entertainment
systems and autonomous driving functions, new EV brands with superior ADAS capabilities and
advanced infotainment systems are expected to be more competitive. New EVs generally offer better
driving experience and technologies to consumers, mainly because of their culture of innovation,
leading products design, R&D capabilities, and their direct-to-consumer business model.
New EV brands usually adopt a D2C business model, which allows new EV brands to have the
opportunity to not only better reach consumers and introduce their products, but also understand the
market dynamics and the changing consumer trends. D2C business model enables OEMs to tap into
consumer trends on a deeper level and establish agile product development cycles, which will further
contribute to the faster release of new models by new EV OEMs.
Comparison of Key EV Brands
VinFast has a track record of rolling out its vehicle platforms at an industry-leading pace and is rapidly
expanding its business globally.
Comparison of Key EV Models
VinFast seeks to establish its position in the U.S. and Europe EV markets as a premium quality product
at an inclusive price. VinFast’s VF 6, VF 7, VF 8 and VF 9 models are targeted to be equipped with a
large touchscreen display, full-stack ADAS and smart infotainment features.
Frost and Sullivan compared the VF 8, VF 9, VF 6 and VF 7 models to their closest competitors. VF 8,
VF 9, VF 6 and VF 7 are expected to deliver a high level of performance in terms of wheelbase, battery
capacity, NCAP rating and other core features relative to the competitors’ vehicle offerings. In terms of
services, VF 8, VF 9 and VF 7 offer (or are expected to offer) a best-in-class warranty of 10 years or
125,000 miles, while VF 6 is expected to offer a best-in-class warranty of 7 years or 100,000 miles. Our
premium quality and services all are offered at an attractive MSRP relative to our competitor’s EV
offerings. Furthermore, according to the F&S Customer Survey conducted in February 2022, VF 8 and
VF 9’s attractive design and outstanding technology are two of the top three factors that are expected
to influence customers’ decision to reserve a VinFast vehicle.
In recent years, the electric vehicle industry in Vietnam has experienced significant growth with an
impressive growth rate. The sales of electric vehicles increased from 1,300 units in 2021 to 34,000 units
in 2022, demonstrating the increasing interest of the public in this type of vehicle. In the coming years,
the electric vehicle industry in Vietnam is forecasted to continue its robust development. However, as
electric vehicles are still relatively new, there are quite a few competitors, especially VinFast, which
faces numerous competitors in the market.
In the automobile market, with the goal of becoming a leading player, VinFast needs to identify its
competitors who are leading companies in the market, share similarities in business areas, and directly
compete with its current and future activities. VinFast must confront many strong competitors in the
market, including Honda, Toyota, Hyundai, and many others globally. They are all long-established
companies with strong brands, experience, financial resources, and large scale. Furthermore, their
products are of high quality and attractive designs. Robust advertising campaigns also contribute to
creating a highly competitive environment in the industry. VinFast's biggest challenge in the car market
is that its vehicle models in the Vietnamese market target segments A and D, where competition among
major car manufacturers is extremely fierce.

04/2023
STT
Types of cars Revenue (pcs)

1 VinFast VF e34 2.332

2 Ford Ranger 1.427

3 Toyota Corolla Cross 1.310

4 VinFast VF8 1.232

5 Honda City 1.137

6 Mitsubishi Xpander 1.084

7 Hyundai Accent 1.050

8 Mazda CX-5 812

9 Ford Everest 754

10 Toyota Vios 695

Table: Top 10 best-selling cars in April 2023

Based on the data in the table, we can see that VinFast's electric car line is performing very well since
its recent introduction to the Vietnamese market, clearly demonstrating the development potential of
the electric vehicle industry. However, it will be very challenging to completely replace established
brands such as Toyota, Hyundai, Mazda, etc., to dominate the Vietnamese market.
Vinfast's main competitors include famous gasoline car manufacturers and electric car
manufacturers in the world but do not have official distributors in Vietnam.

Thaco Truong Hai

Overview
TRUONG HAI GROUP, formerly known as THACO Corporation, was established on April 29, 1997,
in Dong Nai. Founded by Mr. Tran Ba Duong, who currently serves as the Chairman of the Board.
Over the past 27 years of formation and development, evolving from a company specializing in
importing used cars and supplying automotive spare parts, THACO has made remarkable progress,
becoming a diversified industrial conglomerate comprising 6 Member Companies: THACO AUTO
(Automobiles), THACO INDUSTRIES (Mechanical & Industrial Support), THACO AGRI
(Agriculture), THADICO (Investment & Construction), THISO (Trade & Services), and THILOGI
(Logistics), with interrelated industries and high integration.
AUTOMOBILE SECTOR - THACO AUTO
THACO AUTO is the core business and mainstay of THACO over the past two decades. Following the
restructuring in 2021, THACO AUTO operates as a Sub-Holding model responsible for importing,
manufacturing assembly, distribution, retailing, and automotive repair services. The business model is
established along the value chain from Manufacturing (at Chu Lai) to Business (Distribution and
Retailing), encompassing various types of vehicles from passenger cars to buses, trucks, specialized
vehicles under international automobile brands (KIA, Mazda, Peugeot, BMW; Foton, Mitsubishi Fuso),
THACO brand (Thaco Bus), and a network of over 392 authorized dealership showrooms/service
centers, spanning nationwide.
THACO AUTO is a leading conglomerate in automobile assembly manufacturing, catering to domestic
and export market demands. The Automobile Assembly Manufacturing Complex is located at THACO
CHU LAI Industrial Park, comprising 7 factories equipped with technology transferred from Japan,
South Korea, France... featuring automated machinery and digitalization in production management.
The automotive & motorcycle business of THACO AUTO includes a diverse distribution of various
types of vehicles from passenger cars to buses, trucks, specialized vehicles under international
automobile brands (KIA, Mazda, Peugeot, BMW; Foton, Mitsubishi Fuso), THACO brand (Thaco
Bus), and a network of over 400 authorized dealership showrooms/service centers, representing brands
across provinces/cities in Vietnam from North to South.

Finance – Business results

As of the end of 2022, THACO's total assets reached over 153,000 billion dong, placing THACO among
the top 10 enterprises with the largest capital scale in Vietnam. However, there is still a significant gap
compared to Vingroup - the leading enterprise, but the difference is not too much compared to VinFast.
THACO's equity capital as of December 31, 2022, reached 48,445 billion dong, equivalent to an
increase of nearly 2,000 billion dong over the year. Thanks to this result, the return on equity (ROE) of
the conglomerate improved from 11.3% to 15.3%.
The debt-to-equity ratio (D/E) is 2.16 times, slightly higher than the same period last year. Accordingly,
at the end of 2022, THACO's total liabilities amounted to over 104 trillion dong. The bond debt-to-
equity ratio of the company alone is 0.17 times. Thus, the company has approximately 8,200 billion
dong in bond debt.
From 2012 to 2016, THACO's business results were very good and grew rapidly. However, from 2016
to 2020, the business results were unstable and tended to decline until 2020-2022 when growth resumed.
THACO's total assets have increased significantly from 2012 to 2022.
The Vietnamese car market grew from 80,000 units in 2012 to 306,000 in 2019, recording a compound
annual growth rate ("CAGR") of 21%. This strong growth is expected to continue in the passenger car
market. In Vietnam, THACO is a leading automotive manufacturer, assembler, distributor and retailer
with close to 200 branches nationwide. Its automotive brands for passenger cars include Kia, Mazda,
Peugeot as well as BMW and MINI, and commercial vehicles Foton, Kia, Hyundai and FUSO. With
the forecast that the market situation in 2023 will decrease compared to 2022, Thaco Auto expects sales
to reach over 120,000 vehicles (of which, 96,000 passenger cars, 23,500 trucks, 1,500 buses and
minibuses), has the highest market share in each category and the highest total market share in the
Vietnamese automobile market. Total consolidated revenue is over 90,000 billion VND, of which
service revenue is 5,200 billion VND.
 Hyundai Thanh Cong

Overview
With a 50-year history of formation and development, Hyundai Motor Group (South Korea) is a
prestigious, leading brand in quality, and an excellent companion for customers across continents. In
2009, Hyundai Motor signed an exclusive cooperation agreement with Thanh Cong Group in the
production, assembly, and distribution of passenger cars in the Vietnamese market. On March 19, 2021,
Thanh Cong Group and Hyundai Motor officially established a joint venture to distribute Hyundai
passenger cars in the Vietnamese market under the name Hyundai Thanh Cong Vietnam Joint Stock
Company (HTV).
Hyundai Motor considers Vietnam as a potential market for commercial vehicles. However, product
quality and services are inconsistent due to various distribution units. In 2017, Hyundai Thanh Cong
Trading (HCTV) was established with the mission to become the number one manufacturer, distributor,
and exporter of commercial vehicles in Vietnam. After 6 years of development, HCTV has sold 40,000
commercial vehicles; built 20 3S dealerships, 8 1S dealerships, and 7 POS points nationwide; and
operates a manufacturing plant with a capacity of 12,000 vehicles/year for passenger and bus models,
and 30,000 vehicles/year for trucks. HCTV ranks first in customer satisfaction with service quality. It
organizes many large events to show gratitude to customers, partners, and employees. HCTV is
increasingly asserting its leading position in the Vietnamese commercial vehicle industry with reliable
and professional product quality and services.
 Finance – Business results
Hyundai Motor Company is a company with high operating efficiency and is on a strong development
path. This business is highly appreciated for its effective financial management and smart business
strategy. In the coming years, Hyundai Thanh Cong has the goal of continuing to expand its market
share and become the leading automobile distributor in Vietnam.

Hyundai Motor Company's revenue grows steadily in the period from 2011 to 2023, with an average
growth rate of about 5% per year. However, the growth rate has tended to decrease in recent years, and
tended to move sideways in the period from 2015 to 2019. Revenue decreased slightly in 2020 due to
the impact of the COVID-19 pandemic. , disrupting supply chains and limiting consumer demand.
However, revenue rebounded strongly in 2021 and 2022, demonstrating the company's resilience and
rising consumer demand post-pandemic.

Hyundai Motor Company's gross profit grew in the period from 2015 to 2021, mainly thanks to the
growth of revenue, vehicle selling prices and operating efficiency. It is expected that the company's
gross profit will continue to grow in the coming years, but the growth rate will be slower than the
previous period.
Hyundai Motor Company's vehicle output in Vietnam tends to grow strongly in the period from 2017
to 2023. During the 2017-2020 period, vehicle output grows steadily at an average rate of about
20%/year. . In the period 2021-2023, vehicle output will grow dramatically, reaching a growth rate of
71.58% in 2021 and 70.63% in 2022. Hyundai Motor Company's vehicle output in Vietnam has grown
strongly in period from 2017 to 2023. It is forecast that vehicle production will continue to grow in the
coming years.

Toyota

Overview
Toyota Vietnam Company (TMV) was established on September 5, 1995 as a joint venture between
Toyota Japan Company, Vietnam Engine and Agricultural Machinery Corporation (VEAM) and KUO
Company (Asia), with a total investment capital of 49.14 million USD.
In addition to production and business activities, Toyota Vietnam always strives to contribute positively
to the State Budget through good completion of tax payment, as well as contributing to promoting the
sustainable development of the community and society. Vietnam Association with many long-term,
practical and meaningful activities. Throughout the history of formation and development, with the
continuous efforts of all Toyota Vietnam employees, dealers, suppliers and partners, Toyota Vietnam
has achieved many great achievements and continuously developed. strong, fulfilling its mission to
customers, making significant contributions to the automobile industry and Vietnamese society. With
its achievements, Toyota Vietnam was honored to be awarded the second-class Labor Medal by the
Vietnamese Government and is considered one of the most successful foreign-invested enterprises
operating in Vietnam.

Finance – Business results

Currently, Toyota Vietnam always holds the leading position in the Vietnamese automobile market with
the company's factory output reaching over 30,000 vehicles/year (in 2 working shifts). Toyota
Vietnam's cumulative sales reached over 305,799 units, and all products accounted for a large market
share in the market. From 11 employees on the first day of establishment, the company's number of
employees has now reached more than 1,900 people and more than 6,000 employees working at a
system of 41 agents/agency branches and service stations. Toyota authorization covers all over the
country.

According to the Vietnam Automobile Manufacturers Association (VAMA), sales in the entire market
in 2022 will reach more than 500,000 vehicles, of which passenger cars account for more than 80%
with 413,455 vehicles. This is the highest sales level ever in Vietnam. Among them, Toyota continues
to be the leader in market share with sales of 92,625 vehicles (including Lexus), accounting for 22.4%
of the market share.
Toyota's sales of more than 92,000 cars show that every hour, 10 of its cars are sold. 2022 is also the
year recording record sales for the brand with a growth of 34% compared to the same period in 2021.
In 2023, Toyota Vietnam will achieve sales of 59,207 vehicles (including Lexus), bringing total
cumulative sales to over 916,000 vehicles. In particular, the Lexus brand achieved record sales since its
launch with 1,793 vehicles, bringing the total cumulative number to more than 12,000 vehicles.
Regarding production, Toyota will ship 26,426 vehicles in 2023, bringing cumulative production output
to over 687,000 vehicles. Toyota's export of components and spare parts reached nearly 74 million USD
in revenue, with accumulated revenue reaching nearly 864 million USD.
 Ford

Overview
Ford Vietnam Co., Ltd., part of the Ford automobile group, was established in 1995 and opened an
assembly plant in Hai Duong province two years later in November 1997. The factory's capacity is
14,000 vehicles per year/2 production shifts with six current product lines: Transit, Ranger, Escape,
Mondeo, Everest, Focus. Ford Vietnam's total investment capital is 102 million USD, of which Ford
Motor contributes 75% of the capital and Song Cong Vietnam Diesel Company has 25% of the capital.
This is the automobile joint venture with the largest investment capital and also one of the largest US
investment projects in Vietnam.
 Finance – Business results

Currently, City Auto is the distributor for all Ford vehicle models in Vietnam, including cars,
commercial vehicles (Ranger, Ranger Raptor, Transit), and SUVs (Explorer, Everest). According to
official figures, Ford sold nearly 29,000 vehicles in Vietnam in 2022. Ford Vietnam achieved sales of
28,847 vehicles in 2022, an increase of 22% compared to the previous year. Particularly, in Q4/2022,
Ford broke all monthly and quarterly sales records in its history in Vietnam, reaching the highest level
ever recorded with 13,329 units sold.
According to the Q4/2023 financial statements, City Auto's gross revenue reached 7.1 trillion VND, a
12.5% increase compared to 2022. This also marks a record revenue for CTF over the past few years.
However, the cost of goods sold increased by an additional 16.3%, amounting to 6.688 trillion VND.
This resulted in a significant decrease in gross profit of 25.5%, to 412 billion VND.
Notably, the financial operating revenue of City Auto increased relatively strongly during the period,
from 42 billion VND to 185 billion VND, representing a 4.4-fold increase. Meanwhile, financial
expenses also increased by 2.5 times to 158 billion VND, with interest expenses accounting for the
majority of financial costs.

Ford is currently the 4th company selling the most cars in Vietnam in 2023. In December 2023, Ford
reached a sales record with 4,854 cars thanks to a series of promotional and stimulus activities, an
increase of 1% over the month. December 2022. For the whole year of 2023, this brand will reach a
sales record with a total number of cars sold of up to 38,322 units, an increase of nearly 33% compared
to 2022.

In the commercial vehicle segment, Ford Transit has always had steady growth. In 2023, Ford Transit
sales will reach 3,861 vehicles, growing nearly 60% over the same period in 2022 and accounting for
62% of the segment's market share. This is a testament to Transit's outstanding value to businesses in
the same 16-seat commercial vehicle segment. Vietnam is identified as one of four key markets in the
international market area of Ford Group along with Thailand, Australia, and South Africa.
In recent years, Ford has been considered an automobile brand with a strong breakthrough in the
Vietnamese market. The company has continuously improved the engine and performance as well as
equipped with modern technology for its newly launched products. In the near future, based on market
assessment, the company will have more plans to bring hybrid and electric vehicles from Ford to
Vietnam.

Nissan

Overview
Nissan Vietnam Co., Ltd. (NVL) is a joint venture between Nissan Motor Co., Ltd. and Tan Chong
Motor Holdings Berhad (TCMH). The company is headquartered at 3rd Floor, PVI Tower, No. 01 Pham
Van Bach Street, Yen Hoa Ward, Cau Giay District, Hanoi City, Vietnam.
In December 2009, NVL began importing and distributing Nissan cars along with genuine components
and spare parts. In 2010, NVL began assembling the Nissan Grand Livina model in the domestic market
and developed a new exclusive dealer system nationwide. By using specialized software, NVL is one
of the pioneering companies in Vietnam in the field of research and design of Nissan cars.

Finance – Business results

Nissan Motor Group has announced its business results for the first 6 months of fiscal year 2023 (ending
September 30, 2023). Accordingly, Nissan's consolidated revenue in the first half of fiscal 2023 is 6.06
trillion yen, an increase of 1.4 trillion yen over the same period last year. Notably, operating profit
increased from 156.6 billion yen to 336.7 billion yen in the past 6 months, more than double that of the
first half of fiscal 2022. Operating profit ratio of the Japanese group This also increased from 3.4% to
5.6%. In addition, this car company's global sales in the first half of the 2023 fiscal year also increased
by 3.3%, to 1.62 million units. Markets recording positive signals for Nissan are Japan, North America
and Europe.

KIA

Overview
KIA Motor is a renowned automobile manufacturer from South Korea. One of the aspects that many
users appreciate about KIA vehicles is their provision of high-quality products with modern technology,
durability, and yet affordable prices, catering to every customer segment. Originating as a bicycle
manufacturer, KIA ventured into the automotive market through relentless efforts and development.
KIA Motors America was established in the United States with a large scale. In 1998, KIA was acquired
by Hyundai, and together they achieved significant milestones, reaching the production mark of ten
million cars, including popular models such as Carnival (Sedona) and Sorento, which remain favored
in the Vietnamese market due to their high quality and reasonable prices.
In 2007, THACO AUTO and KIA Group officially signed a cooperation agreement for technology
transfer, assembly, and exclusive distribution of KIA vehicles in the Vietnamese market. In June 2007,
THACO Group commenced the construction of an assembly plant for KIA vehicles in the Chu Lai Open
Economic Zone, Quang Nam Province, with an initial scale of about 35 hectares. This plant is the first
domestic passenger car assembly plant in Vietnam and is one of the most modernly equipped facilities
in the region.
To date, KIA Motors Vietnam has produced and introduced to the market over 400,000 KIA vehicles
through more than 100 showrooms/dealerships following KIA Motors' global standards. This has
established KIA as a familiar and reputable automobile brand, beloved by a large customer base, with
many trusted and leading models in segments such as KIA Morning, Cerato, and Sedona.

Finance – Business results

On January 25, 2024, KIA Corp., Korea's second largest automobile manufacturer by revenue, said its
net profit in the fourth quarter of 2023 decreased by 21% compared to a year earlier due to costs. higher
and the won strengthens. Net profit for the three months ending December 2023 fell to 1,620 billion
won ($1.2 billion) from 2,040 billion won in the same period in 2022. KIA's operating profit in the
fourth quarter dropped 6% down to 2,470 billion won compared to 2,620 billion won in the same period
last year. Revenue increased 5% to 24,330 billion won compared to 23,160 billion won in the same
period last year.
For the full year 2023, net income rose 62% to 8,780 billion won from 5,410 billion won the previous
year thanks to strong sales of premium SUVs. Last year, operating profit also increased 61% to 11,610
billion won in 2023 from 7,230 billion won a year earlier. Revenue increased 15% from 86,560 billion
won to 99,810 billion won.
In 2024, KIA has set a yearly revenue and operating profit target of 101,100 billion won and 12,000
billion won, respectively.
 Tesla

Overview
Tesla Motors is an American company specializing in the design, manufacture, and distribution of
electric vehicles and components for electric vehicles. It was founded in July 2003 by Martin Eberhard
and Marc Tarpenning. Today, under the leadership of tech billionaire Elon Musk, the startup electric
car company Tesla Motors has achieved considerable success in just a few short years, starting from
scratch. Beginning with the original Tesla Roadster model, leveraging the credibility of its founders,
the company has become a leader in developing new electric vehicle technology. In Asia, Tesla opened
its first showroom in Japan in Aoyama in November 2010, followed by the second showroom in Osaka.
While Tesla is one of the leading brands in the US market and is successfully expanding in some
European and Asian countries, there is still no official showroom/dealer in the Vietnamese market.
Vietnamese customers can only import Tesla vehicles through maritime shipping. The notable electric
vehicle models from Tesla available in Vietnam include the Tesla Model X and Tesla Model 3.

Finance – Business results

Tesla Motors is currently producing and selling Model S Sedan. Model S deliveries started in June 2012
and the company delivered 56,768 vehicles by Dec 31st, 2014. Apart from Model S, the company
continues to develop Model x crossover vehicles with deliveries commencing in 2015 and Model 3
lower priced Sedan for mass market in 2017.
As per the company’s annual report (2015), In 2014, Tesla did a total revenue of $3.20 billion and a
gross margin of 27.6% which was significantly more than the gross margin of 22.7% in 2013. The
company attributes higher vehicle production volume, supply chain efficiencies and component cost
reduction for higher gross margin. Tesla anticipates huge demand for Model S and X and are executing
a plan to produce over 2000 units per week. They are also focusing on continuously lowering the
manufacturing cost. They expect to deliver approximately 55,000 Model s & X vehicles worldwide by
2015. To support these vehicles, the company plans to expand the Supercharger and service
infrastructure worldwide. Tesla’s Giga factory for Lithium battery production is another milestone in
which the company invested over 5 billion dollars. Although the Giga factory is an important step
towards achieving the company's ambitious production goals with Tesla Motors as well as Tesla
Energy, it is a long journey before it becomes financially profitable for the company.
According to the financial report of 2022, Tesla generated $2.8 billion from its charging station
business, marking a 71% increase compared to 2021. This is an impressive figure, demonstrating the
significant potential of this business segment, especially amid the rapidly growing electric vehicle
market in North America. Electric vehicle sales in the US are expected to reach 5 million units by 2025.
Tesla announced the delivery of 466,140 sedans and crossovers in the second quarter of 2023, driven
by significant price reductions. This is a record-breaking sales figure for Tesla and exceeds investor
expectations. Total sales for Tesla increased by 83% compared to the same period in 2022 and by 10%
from the first quarter of 2023, with the Model Y and Model 3, which utilize new battery technology,
leading the pack with a combined total of 446,915 units. Total production from the four manufacturing
plants located in Austin, Texas (USA) increased by 86% to 479,700 vehicles compared to the previous
year.
In 2023, Tesla's sales increased by 38% compared to 2022, although investor expectations were higher.
In January 2024, Tesla warned that this year's sales growth might be even lower. However, Tesla's
global sales in the first quarter of 2024 decreased by over 20% compared to the same period last year,
marking the first decline since the outbreak of the pandemic. Tesla's stock price fell by nearly a third in
2024, as the company's sales and profits disappointed. This makes it one of the weakest-performing
companies in the S&P 500 index since the beginning of the year.
 BYD

Overview
BYD Auto is a subsidiary specializing in automobile manufacturing of the multinational conglomerate
BYD Co. Ltd, headquartered in Xi'an, Shaanxi, China. The company was established in January 2003
after BYD acquired Qinchuan Auto Company in 2002. BYD Auto produces various types of vehicles
including cars, buses, trucks, electric bicycles, forklifts, and electric vehicle batteries. BYD's electric
car models include battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV). By
March 2022, they had also produced vehicles using internal combustion engines.
In June 2022, BYD Auto surpassed Tesla to become the world's largest electric vehicle manufacturer,
announcing sales of approximately 641,000 electric vehicles (including both BEVs and PHEVs) in the
first half of 2022, although still trailing Tesla in BEV numbers. By the end of 2022, BYD became the
first automaker in China to produce one million new energy vehicles (NEVs) - a term used in China to
describe BEVs, PHEVs, as well as fuel cell electric vehicles (FCEVs) - in a single year. On August 11,
2023, BYD celebrated the sale of 5 million NEVs.
By 2021, BYD was the fourth-largest plug-in electric vehicle (PEV) manufacturer and the fourth-largest
BEV manufacturer globally, with 9.1% and 7% global market share, respectively. In the latter half of
2023, the company became the largest PEV manufacturer and the second-largest BEV manufacturer
(after Tesla) globally, with global market shares of 21.4% and 15%, respectively. Most of the sales are
concentrated in China, although the company is rapidly expanding into overseas markets in the
European Union, Southeast Asia, Oceania, and Latin America. BYD's electric vehicle battery division,
FinDreams Battery, is the world's third-largest electric vehicle battery manufacturer, with a 12% global
market share in the first half of 2022, focusing on lithium iron phosphate batteries. In 2023, FinDreams
established a joint venture with Huaihai Holding Group, renowned for electric tricycles and electric
bicycles, to establish the world's largest sodium-ion battery supplier.BYD owns several subsidiary
brands, including Denza, which is a luxury brand. Yangwang is slightly more upscale luxury. They also
have a specialty/custom vehicle brand called Fangchengbao.

Finance – Business results

In 2022, BYD ranked 579th in the list of the 2000 largest public companies in the world (Forbes Global
2000) and ranked first in the list of the top 10 brands with the highest sales of electric vehicles in 2022.
BYD has actually outsold Tesla in the past two years (2022 and 2023) if their total vehicle sales,
including electric, plug-in hybrid, and commercial vehicles, are considered. However, if only electric
vehicles are considered, they have only surpassed Tesla since the fourth quarter of 2023.
In the fourth quarter of 2023, BYD sold 526,000 vehicles, surpassing Tesla's sales of 485,000 vehicles
during the same period. Overall for the year, Tesla remains the largest electric vehicle manufacturer in
the world, with sales reaching 1.81 million vehicles globally, meeting the annual target, although the
growth rate has slowed down. Meanwhile, BYD sold 1.6 million pure electric vehicles in 2023.
Throughout 2023, BYD sold a total of 3.02 million vehicles globally, a significant increase from the
1.85 million vehicles sold in 2022. According to information from ArenaEV, BYD's electric vehicle
sales from China increased by 72.8% in 2023 compared to 2022.
The impressive growth rate of BYD demonstrates the strong development of the electric vehicle
industry in China as well as BYD's leading position in this field. Specifically, electric vehicles
accounted for 52.3% of BYD's total passenger vehicle sales, surpassing the majority mark. Additionally,
BYD has become the world's second-largest electric vehicle battery manufacturer with an assembled
battery capacity reaching 150,909GWh, second only to CATL. These impressive business results help
BYD further consolidate its leading position in the global electric vehicle industry.

Honda

Overview
Established in 1996, Honda Vietnam is a joint venture between Honda Motor Company (Japan), Asian
Honda Motor Company (Thailand), and Vietnam Engine and Agricultural Machinery Corporation, with
two main product lines: motorcycles and automobiles. With nearly 30 years of presence in Vietnam,
Honda Vietnam has continuously developed and become one of the leading companies in motorcycle
manufacturing and reputable automobile manufacturer in the Vietnamese market.
In March 2005, Honda Vietnam officially received a license from the Ministry of Planning and
Investment to manufacture and assemble automobiles in Vietnam - marking an important milestone in
the company's development history.
Starting automotive business operations in 2006, in just over a year, Honda Vietnam successfully built
a factory, dealer network, sales training programs, services, safe driving training for dealership staff,
and launched its first car model, the Honda Civic, in August 2006. Continuously striving to diversify
its product range, the Honda CR-V model was introduced by the company in December 2008, followed
by the Honda City in June 2013. In addition to domestically manufactured models, Honda Vietnam also
imports premium sedan and multi-purpose vehicle models, namely the Honda Accord and Honda
Odyssey, to meet the increasing demands of customers. In 2016, Honda Vietnam switched to importing
the Honda Civic model instead of producing it domestically. To date, Honda Vietnam has provided the
Vietnamese automobile market with three vehicle lines to serve the diverse needs of customers: sedan
(large, medium, and small sizes), SUV, and MPV.
With relentless efforts, Honda Vietnam is not only known as a prestigious motorcycle manufacturer but
also a reputable automobile manufacturer in the Vietnamese market.

Finance – Business results

In 2023, HVN's car sales will reach 25,808 cars, an increase of 7% compared to 2022. Of which, in
March 2023, car sales will be 1,489 cars, an increase of 7.5% compared to the previous month.
Honda Vietnam achieved sales results of 2,554 vehicles, up 78.5% over the previous month and up
29.6% over the same period last year. Cumulatively for the 2024 fiscal year (lasting from April 2023 to
March 2024), Honda Vietnam achieved sales of 10,702 vehicles, down 32.9% over the same period last
year. Honda Vietnam's best-selling car models in August and September 2023 are Honda City and
Honda CR-V.

Volkswagen

Overview
Volkswagen Group (VW) was founded on May 28, 1937 with headquarters in Wolfsburg, Germany.
Volkswagen is one of the world's leading automakers and the largest car manufacturer in Europe
according to global sales in 2019.
In Vietnam, Trend Motor Vietnam Co., Ltd. is the official authorized distributor of Volkswagen. The
business is proud to bring Vietnamese customers high quality products and services according to
Volkswagen's global standards. With a dealer network spanning major cities in Vietnam, Volkswagen
Vietnam offers a wide range of products from luxury Sedan models (Passat), to multi-purpose sport
SUVs (7-seat Tiguan Allspace). and high-end SUVs (Touareg), from sporty Coupe (Scirocco) to
youthful Hatchback (Polo) and especially the legendary symbol "Beetle" (Beetle Dune).

Finance – Business results

According to figures released by the company, Volkswagen's operating profit before exceptional items
increased by 12.5% to approximately 22.5 billion euros (24 billion USD), and revenue increased by
11.5% to 279 billion euros in 2022.
On February 7, 2023, Volkswagen announced preliminary figures showing increased operating profit
and sales volume in 2022, in line with the company's forecasts. However, Volkswagen did not achieve
its target for cash flow due to supply chain issues.
According to the company's disclosed figures, operating profit before exceptional items increased by
12.5% to approximately 22.5 billion euros (24 billion USD), and revenue increased by 11.5% to 279
billion euros in 2022. Volkswagen had forecasted a growth rate ranging from 8.0-13.0%. Despite a
decrease in sales volume, Volkswagen's profit increased, with the company reporting at the beginning
of the year that the number of cars sold in 2022 decreased by 7%. Cash flow at 5 billion euros was also
significantly lower than the target of 8.6 billion euros set by the company. According to Volkswagen,
this shortfall is mainly due to supply chain disruptions.
According to a report in January 2023, Volkswagen's delivery volume increased by 12% in the second
half of 2022. However, the total delivery volume for the year was the lowest in over a decade, due to
COVID-19 lockdowns in China and conflict in Ukraine disrupting the supply chain in 2022.
Competitive Landscape in the Vietnamese Market and Pressure from Global Competitors
According to Dezan Shira & Associates consulting firm, with rapid population growth, expanding
middle class, and environmental awareness, Vietnam promises to be a strategic market for many electric
vehicle manufacturers, alongside traditional markets like North America, Europe, and China. VinFast
faces significant competition from competitors at home.
At the end of 2021, Mercedes-Benz introduced the EQS model at an online event. This vehicle has a
range of up to 770 km and a charging time at fast charging stations from 10% to 80% in about 31
minutes.
Most recently, Thanh Cong Group and Hyundai introduced the Ioniq 5 electric car, capable of reaching
speeds of up to 185 km/h and a maximum operating range of about 450 km per charge. However, this
model is still in the market exploration phase.
Another vehicle from South Korean manufacturer Kia, the EV6, is designed with multiple motor
versions, including one that can accelerate from 0 to 100 km/h in just 3.5 seconds, equivalent to many
supercars.
Audi is planning to introduce the e-tron GT model in Vietnam, following a relatively successful launch
in Thailand. This is a luxury sports car with a high price tag, around 5 billion VND.
However, unlike VinFast vehicles, the other models have not yet been launched for sale, and foreign
car manufacturers are still cautious, only exploring the market.
In the United States (the world's largest automobile market), VinFast's VF 8 and VF 9 models will have
to compete with major players such as Tesla, Ford, and Korean competitors Kia and Hyundai with their
EV and Ioniq electric car lines.
At the 2022 Consumer Electronics Show (CES) in Las Vegas, VinFast also announced the prices for
the VF8 and VF9 models in the US market, at $41,000 and $56,000 respectively, excluding taxes and
fees, competing with Ford Mustang Mach-E models priced from $42,895 to $59,900.
Although named Mustang, the Ford Mustang Mach-E is actually the first electric SUV from the
American automaker, launched at the end of 2019. In the US, the car is being sold with four versions:
Select, Premium, California Route 1, and GT, priced from $42,895 to $59,900.
In the entry-level Select version, the Ford Mustang Mach-E is equipped with an electric motor with a
power output of 266 horsepower and a maximum torque of 430 Nm. This version's battery pack has a
capacity of 68 kWh, allowing the vehicle to operate for 370 km on a full charge.
In addition, with a total of 5 models introduced at CES 2022, including two large SUVs VF8 and VF9
aimed at the US market, many experts believe that Volkswagen and Audi will be Vinfast's main
competitors in the near future with vehicles in the same segment and price range.

Cutomers

Target Customers - These are the customers VinFast aims to reach:

Individuals with a decent to high income, who have a need for car ownership while saving costs
(VinFast electric vehicles have lower operating costs compared to gasoline-powered cars, helping
customers save on fuel and maintenance expenses).
Customers who are technology enthusiasts, interested in the advanced technological features of VinFast
electric vehicles and desire to experience them.
Customers who want to support Vietnamese brands, trust the VinFast brand, and want to own a product
from this brand.
Potential Customers
Vietnam is a potential market for electric vehicles with its young and developing population. VinFast
has a brand advantage and market understanding domestically. In addition, VinFast is targeting
international markets, especially developing markets like North America and Europe.
Based on customer data analysis, VinFast has identified some common characteristics of its customers,
including:
Age: The main customer group of VinFast is people aged 25 to 45.
Gender: VinFast customers include both males and females, but females account for a higher
proportion.
Income: VinFast customers have a decent to high income.
Education level: VinFast customers have a high level of education.
Occupation: VinFast customers are mainly professionals in business, technology, and services.
Personality: VinFast customers are typically dynamic, modern individuals who love technology and
desire to experience new products.
Overall, VinFast is focusing on customers with high income, high education level, dynamic lifestyle,
technology enthusiasts, and environmental concerns. They have a demand for smart, modern electric
vehicle products that offer new driving experiences. VinFast has implemented various effective
strategies to attract and retain customers, including providing high-quality products, excellent customer
service, and building a cohesive community.
To attract and retain customers, VinFast has implemented various strategies:
Quality assurance: VinFast applies international quality standards in the production process to ensure
the best product quality for customers.
Nationwide showroom system: VinFast has a nationwide showroom system, making it easy for
customers to access and experience products.
Competitive pricing: VinFast offers electric vehicle products at competitive prices compared to other
electric vehicle brands in the market.
Attractive incentive programs: VinFast regularly implements incentive programs such as loan interest
support, gifts, and long-term warranties to attract customers.
Attractive warranty and after-sales policies: VinFast provides attractive warranty and after-sales
policies for customers, creating peace of mind when using the product.

Supplier

AAPICO Company (Thailand) and VinFast Manufacturing and Trading Company Limited (Vietnam)
have formed a joint venture to stamp and weld automotive body parts for VinFast. AAPICO will be
responsible for project management, including manufacturing technology, factory design, and
equipment installation.
In addition, VinFast collaborates with several leading suppliers in the electric vehicle industry to
produce high-quality electric cars. Here are some key suppliers:
Electric vehicle batteries:
LG Chem: Provides lithium-ion batteries for the VF e34, VF8, and VF9 models. LG Chem is the world's
largest electric vehicle battery manufacturer with advanced technology and high reliability.
CATL: Supplies lithium-ion batteries for the VFe35 model. CATL is the world's second-largest electric
vehicle battery manufacturer with large battery production capacity and competitive prices.
Electric motors:
Siemens: Supplies electric motors for the VFe34, VF8, and VF9 models. Siemens is a reputable electric
motor manufacturer with many years of experience in the field.
Bosch: Provides electric motors for the VFe35 model. Bosch is a global automotive supplier with
advanced technologies for electric vehicles.
Electronic systems:
Continental: Supplies electronic systems for the VF e34, VF8, and VF9 models. Continental is a leading
provider of electronic systems for the automotive industry.
Aptiv: Provides electronic systems for the VFe35 model. Aptiv is a supplier of electronic systems for
electric vehicles with advanced technologies.
Design:
Pininfarina: The renowned Italian car design company has collaborated with VinFast to design the
VFe34 model. Pininfarina has extensive experience in designing cars for luxury brands such as Ferrari,
Maserati, and Rolls-Royce.
Torino Design: The famous Italian car design company has partnered with VinFast to design the VF8
model. Torino Design has experience in designing cars for automotive brands such as Fiat, Alfa Romeo,
and Lancia.
Furthermore, VinFast also collaborates with many other suppliers to provide components and
accessories for electric vehicles. VinFast always selects reputable and high-quality suppliers to ensure
the production of the best electric cars for customers.

Substitute product

The electric vehicle market in Vietnam is increasingly growing with the emergence of many new brands
alongside VinFast. Therefore, consumers have more alternative choices for electric vehicles besides
VinFast products. VinFast's substitute products are those that can meet consumers' needs similar to
VinFast's products but are manufactured by other brands. Substitute products may belong to the same
segment, have similar features, or may be different segments with different features but still meet
consumers' needs.

Some substitute products of VinFast, classified by segment:

Segment A:
Toyota Raize: This model has a price starting from 524 million VND, notable for its modern design,
spacious interior, and many safety features.
Kia Sonet: This model has a price starting from 499 million VND, attracting customers with its youthful
and dynamic design, along with modern amenities.
Hyundai Kona: This model has a price starting from 636 million VND, favored for its distinctive design,
strong performance, and advanced technologies.

Segment B:
Honda City: This model has a price starting from 529 million VND, distinguished by its sporty design,
spacious interior, and fuel efficiency.
Toyota Vios: This model has a price starting from 478 million VND, a popular choice for its durability,
fuel efficiency, and high resale value.
Hyundai Accent: This model has a price starting from 426 million VND, appealing to customers with
its youthful design, modern amenities, and reasonable price.

Segment C:
Mazda3: This model has a price starting from 669 million VND, favored for its impressive KODO
design, luxurious interior, and sporty performance.
Toyota Corolla Altis: This model has a price starting from 746 million VND, a top choice for those
seeking a comfortable and reliable car.
Honda Civic: This model has a price starting from 763 million VND, attracting customers with its sporty
design, spacious interior, and modern amenities.

Segment D:
Toyota Camry: This model has a price starting from 1,075 million VND, renowned for its luxury,
comfort, and fuel efficiency.
Mazda6: This model has a price starting from 1,049 million VND, favored for its impressive KODO
design, premium interior, and sporty performance.
Honda Accord: This model has a price starting from 1,326 million VND, attracting customers with its
modern design, spacious interior, and premium amenities.

SUV Segment:
Toyota Fortuner: This model has a price starting from 1,152 million VND, a popular choice for its
durability, strength, and impressive off-road capability.
Hyundai Santa Fe: This model has a price starting from 999 million VND, attracting customers with its
modern design, comfortable interior, and many safety features. The Santa Fe has a SantaFe Hybrid
electric version priced from 1.64 billion VND.
Kia Sorento: This model has a price starting from 1.079 billion VND, a suitable choice for those seeking
a stylish and comfortable SUV. The Sorento does not have an electric version.

MPV Segment:
Toyota Innova: This model has a price starting from 755 million VND, favored for its spacious design,
comfortable interior, and durable performance. The Innova does not have an electric version.
Mitsubishi Xpander: This model has a price starting from 555 million VND, attracting customers with
its reasonable price, spacious interior, and fuel efficiency. The Xpander does not have an electric
version.
Suzuki Ertiga: This model has a price starting from 499 million VND, a suitable choice for those seeking
a budget-friendly MPV. The Ertiga does not have an electric version.

Furthermore, many new electric vehicle models from brands such as Porsche, Mercedes-Benz, BMW,
etc., are also soon to be introduced in Vietnam, promising to bring diverse choices for consumers.
Additionally, motorcycles and public transportation vehicles can also be considered as alternative
products to cars. For those who need to commute within the city, motorcycles, and buses are cost-saving
options compared to car products, including electric cars.

The emergence of substitute products for VinFast electric vehicles will create competitive pressure on
the brand. To maintain market share and increase sales growth, VinFast needs to continue improving
its products and services, while enhancing brand quality and value.

Vinfast- Supply Chain

Supply Chain
Our mission to ‘create a more sustainable future for all’, influences our supply chain decisions. How
we make things and who we partner with carries as much importance as the end product itself. We work
hard to keep our relationships with our suppliers robust, respectful, and resilient so that our supply chain
can make a real difference in the drive toward innovation and lighter impact on the environment. This
requires collaboration, trust, deep understanding, transparency, and a focus on the well-being of people
who help make our products. Each supplier selected by VinFast must meet a number of criteria,
including legal compliance, quality standards, capacity, labor relations, social impact and
environmental protection.
VinFast has a Supplier Code of Conduct which provides a framework for suppliers in regards to their
responsible business conduct and set out steps to help mitigate any adverse effects on human rights,
labor rights, environmental protection and anti-corruption practices. As of June 30, 2023, 76% of our
suppliers have adopted international standards as part of their environmental management systems.
VinFast, as part of its ongoing approach to ESG matters, will continue to consider emerging and relevant
issues for incorporation into its Supplier Code of Conduct and that are particularly relevant to VinFast’s
relationships with its suppliers.

Distribution and Retail

Manufacturers and their distributors are exempt from the foregoing license and permit requirements.
The sale of automobiles is subject to consumer protections that vary by province. Each province has
consumer protection legislation that details the disclosure that must be included in a sales agreement,
as well as specific consumer protection legislation relating to auto-repair services that require that
consumers be provided with written estimates, upfront pricing and details of repair and labor in the sales
agreement. Sales agreements are binding and do not provide for a cooling-off period. However, dealers
are required to provide the most accurate information available regarding the vehicle’s history and key
features. Omission of certain information provides buyers with a period of 90 days in which to cancel
the sales agreement.
Additional consumer protections apply when the purchase of the vehicle is financed. The Canadian
Motor Vehicle Arbitration Plan is a free arbitration program from participating manufacturers that assist
consumers in handling disputes about manufacturing defects. Vehicle dealers must inform the buyer if
the purchased vehicle qualifies for this program.
Under the Canadian Competition Act, unilateral pricing decisions by a manufacturer can be investigated
by the Competition Bureau as a civil matter if they rise to the level of being an abuse of dominant
position by that manufacturer.
ANALYZE INTERNAL FACTORS

Management

Company Structure and Activity

VinFast has implemented a hierarchical management structure, resulting in a high degree of
specialization within the organization. Each department operates independently and focuses deeply on
its specific tasks, minimizing overlaps.
The company has successfully combined specialization and synthesis in a flexible manner. Through
synthesis, the Board of Directors has been able to oversee all aspects of the company's operations
comprehensively. Simultaneously, specialization has clearly defined the authority and responsibilities
of each department, making it easier for management to develop the company's workforce. Each
department is solely responsible for its area of expertise, delving deeply into specialized research, thus
enhancing the quality and efficiency of operations.

Principles of the Management Code of Conduct

Core Values of Management Models

Human resource

Human capital is the critical resource for business development. Vingroup employees are experts in
each of our core business segments, thereby creating an attractive, professional and friendly working
environment based on the human resource policies described below:Protect Employee Rights and
Equality
Vingroup appreciates the values created and contributed by employees to the business,
commits not to use child labor (including juvenile workers), forced labor, ensures equality and
nondiscrimination regardless of nationality, age, gender, education level. The Group manages and
evaluates employees according to their productivity and work efficiency, providing equal opportunities
for all employees in the working process and creating conditions for each individual to maximize their
potential.
VinFast, one of the leading electric car manufacturers in Vietnam, is experiencing strong and diverse
personnel development, with women accounting for 50% of VinFast's leadership team. Since its
establishment in 2017, VinFast has attracted a large number of talented employees from both domestic
and international sources, contributing to the diversity and quality of its workforce.
Currently, VinFast boasts a diverse workforce with thousands of employees in various job fields,
ranging from automotive engineers, designers, and manufacturers to marketing and sales. The company
not only focuses on attracting talented employees but also emphasizes on training and developing the
skills of its current staff.
VinFast provides a professional working environment and advancement opportunities for its employees,
with training programs, support, and benefits. The VinFast workforce is not only diverse in expertise
but also brings creativity and dynamism, contributing to the development of high-quality and diverse
electric car products to serve both domestic and international markets.

We strive to cultivate a culture of diversity, equality and inclusion within our company. We have tapped
into Vietnam’s diverse population, comprising a number of ethnic groups, and seek to build a team
made up of individuals from diverse backgrounds. We believe a diverse workforce contributes to
increased creativity, better problem-solving skills and improved decision-making. We believe in
treating all individuals fairly and equitably and ensuring everyone has access to the same opportunities,
resources and benefits. In furtherance of this, we conduct pay equity analysis to ensure employees are
paid fairly and equitably for their work and have implemented anti-discrimination and anti-harassment
policies and procedures. To foster a culture of inclusion, which we believe promotes employee
engagement, productivity and retention, we have implemented a mentorship program that pairs
employees from underrepresented groups with senior leaders within the organization and provide
training and development opportunities to our employees to enable them to advance in their careers
within the organization.
Our global leadership team, led by our Managing Director and Global CEO, Ms. Le Thi Thu Thuy, is
responsible for the strategic direction of our company across our target markets. Our country-level
leadership teams, led by our country-level chief executive officers, are responsible for implementing
our global strategy in their respective markets as well as developing in-market initiatives to address
specific market conditions and customer requirements that are unique to their markets.
In February 2023, we consolidated our U.S. and Canada operations and management into a single unit,
VinFast North America, which is headquartered in Los Angeles, California. This consolidation is
intended to optimize our operations and achieve greater efficiency and cost management, leading to
improved operational and financial performance.

As of March 31, 2023, approximately 96% of our employees were based in Vietnam, and 4% of our
employees were based in our international offices.
Our success depends on our ability to attract, retain and motivate qualified employees. We offer
employees competitive compensation packages and a positive, dynamic and creative work environment.
We believe that we maintain a good working relationship with our employees, and we have not
experienced any material labor disputes or work stoppages. In Vietnam, we have entered into collective
bargaining agreements on terms that we believe are typical in our market.
We enter into standard labor contracts with our employees. We also enter into standard confidentiality
agreements with all of our employees.

Business activities

Vinfast Business Strengths

We believe we are well-positioned to achieve our strategic goals through several key business strengths,
including the following:
Comprehensive Mobility Ecosystem with Strategic Focus on High Growth Segments: We boast a
broad EV mobility platform, including electric cars for the global EV market and e-scooters and e-buses
in Vietnam. We believe we have achieved a leading market share in Vietnam across each of the vehicle
segments which we historically have delivered ICE cars and currently deliver EVs. We have targeted
the highest-growth segments in our production ramp up and global launch strategy and have formulated
our growth outlook with data from reputable global automotive industry consultants in building our
international expansion plan. Not only do we forecast an increasing secular shift to EVs, but we have
also studied our key growth markets and targeted the SUV segment initially, the segment of the
passenger light vehicle market with the highest expected growth in demand. As customer demand
increases for long distance travel, larger in-vehicle space and larger storage space, Frost & Sullivan
expects the B, C, D, and E vehicle segments to grow globally at 2.3%, 1.6%, 5.8% and 7.9% CAGRs,
respectively, from 2022 to 2028. Our TAM is forecasted to reach $1.3 trillion, representing an annual
shipment of approximately 34 million vehicles, by 2028, according to Frost & Sullivan. We believe we
are reaching the fastest growing market at a competitive price point relative to our closest EV peers.
The F&S Customer Survey conducted in February 2022 found that customers who have placed
reservations for VinFast EVs prefer our vehicles over those of direct peers mainly for our attractive
design, inclusive price (taking into account our optional battery subscription program) and outstanding
technology, with more than 74% of respondents selecting these as the most important factors
influencing their reservation decision. We believe our pricing model, providing luxury-level features
and premium quality at a competitive price point, positions our EV platform for achievable penetration
of our addressable market, through the potential for conversion of a greater number of ICE drivers into
new EV drivers. We have seen success in this conversion effort thus far. A majority of our U.S.
customers who placed reservations for VinFast EVs and participated in the F&S Customer Survey are
switching from ICE vehicles to a VinFast EV. As of the time of the survey in February 2022, over 69%
of F&S Customer Survey respondents owned at least one car and over 89% of respondents owned ICE
vehicles. Given our strategic focus on EVs, we have tailored our business model to target segments that
we believe will achieve the highest growth and profitability across the EV spectrum.
Attractive Lineup of Skillfully Engineered, Luxurious Electric SUVs: Our comprehensive lineup of
EVs, highlighted by the VF 5, VF 8 and VF 9 and forthcoming VF 6, VF 7 and VF 3, is designed to
enhance and complement the lives of our drivers through their lifestyle-friendly design. Incorporating
high quality craftsmanship, alongside our proprietary tech-forward infotainment system, we aim to
provide a luxurious, advanced and customizable offering of the features that EV drivers have come to
desire. Every decision that we make in the design of our vehicles is framed with the driver in mind—
from our spacious seats to the colored heads-up display, simplistic dashboard and personal assistant
interface, we expect the VinFast system to become fully integrated into our drivers’ lives. On the
exterior, our signature lighting that frames our “V” logo sweeps out to the corners of the car and
powerfully exudes our brand. The overarching character of our vehicles provides a comfortable and
modern feel, while making a powerful statement on the VinFast Lifestyle. In addition, we plan to
introduce new features for the VF 8 and VF 9 in the next two years to provide a comprehensive and
higher-end product offering, focusing on sustainable materials and adding more premium features such
as higher-end interior materials, elevated smart features and enhanced ADAS
Innovation-Driven, Technology-Centric Platform: We offer integrated, state-of-the-art technology
across our vehicle segments and in our associated mobile application platform. Our platform was built
with the philosophy of “technology for life,” driven by the belief that technology should enable the
safest, most driver-friendly experience possible. To us, “technology for life” involves being thoughtful
with our design features and R&D efforts, while maintaining a strategic focus on the highest value and
most practical features to support our customers’ needs. Our development teams work with well-
established engineering service providers and suppliers of high-quality components to research and
develop differentiated and personalized features, such as virtual assistants, in-car e-commerce, in-car
entertainment, facial recognition, voice biometrics and more to create a truly personalized driving
experience. With safety being of paramount importance, our heads-up-display, standard across all
VinFast EV models, helps to ensure drivers’ eyes remain on the road to avoid the distraction of looking
at consoles or panels below. In addition, we are focused on including the latest practical safety features
through our ADAS implementation. Each of the vehicles that we currently plan to launch are planned
to be offered with ADAS Level 2 capabilities. Our technology platform provides ancillary revenue
stream opportunities for VinFast over the ownership cycle, including features available for a monthly
subscription fee.
Differentiated Ownership Experience to Drive Brand Loyalty: Our vision is to transform the
traditional vehicle ownership model into a customized experience for our drivers, thereby increasing
brand loyalty and adding more value to our drivers. We aim to do this through four key initiatives: our
cloud-based companion app, unique warranty offer, VinFast Service program and VinFast Power
Solutions. We intend for our app to allow for a fully-connected experience and act as a hub for owner-
to-owner interaction, vehicle service, infotainment connectivity and more. Our comprehensive warranty
of up to 10-year / 125,000-mile, including our roadside assistance package, demonstrates our
commitment to the quality of our products. Our VinFast Service program will aim to bring best-in-class
convenience to our customers through remote care (diagnostics and virtual repairs), mobile services
(provided by a fleet of EV vans) and roadside assistance, all of which will be accessible through our
customer app and our 24/7 service centers. Finally, through our VinFast Power Solutions, we aim to
alleviate anxiety around charging and autonomy by offering at-home smart charging solutions coupled
with access to an extensive charging network through our e-mobility platform.
Flexible Offering at an Inclusive Price Point: We believe that providing a flexible, high-quality
product offering at an inclusive price point is critical to our “boundless together” philosophy. This
philosophy offers the benefits of EVs to a broader population than possible today, which we believe
will provide flexibility for us to capture market share. Our inclusive pricing model differentiates us
from most OEMs in the market today that are pursuing the higher-priced premium segment. We target
a broader market and, according to Frost & Sullivan, offer a lower TCO proposition compared to the
average of our peers, without compromising on our design or technology suite. We believe we deliver
this value not only through our competitive pricing relative to peers but also through our flexible
ownership options, including through vehicle leasing with third-party partner banks and our battery
subscription program for select markets (primarily Vietnam) and models, to reach a broader driver and
ownership base. We have multiple advantages that allow us to maintain price competitiveness, including
our highly-automated manufacturing facility, our access to a low-cost labor base in Vietnam, our well-
diversified supplier base, relatively favorable tax environment and established trade agreements
between Vietnam and the U.S., EU and other major global markets. These relative strengths have
allowed us to build a competitive cost structure that enables our inclusive pricing model.
Demonstrated Speed to Market and Ability to Execute: We have demonstrated our ability to deliver
on market capture and brand building within Vietnam. With our initial line of ICE vehicles, we reached
start of production within 21 months from company inception. Within 18 months from product launch,
we gained the leading market share in Vietnam for each of our product segments, based on
management’s analysis of publicly available data, taking market share from global automotive OEMs
from Europe, the U.S. and Asia who have historically dominated these segments. From a product launch
perspective, we had great success with the launch of our VF e34, Vietnam’s first EV that we pioneered
in 2021, setting records in Vietnam by receiving over 25,000 reservations within three months of
accepting reservations, and receiving more than 417,500 organic discussions on social media in the two
days following the announcement. The VF e34 was voted the “Green vehicle of 2022” and “Favorite
C-segment CUV in 2022” by Otofun and among the top 10 best-selling vehicles in Vietnam in June
2022 according to VAMA, TC Group and our public sales report. Similarly, our “The Future is Now”
delivery event for the VF 8 at our manufacturing facility in Hai Phong in September 2022 was featured
by over 700 news outlets and received over 8.5 million views on social media platforms. We believe
our success in Vietnam has been enabled by our flat organizational structure, quick decision-making,
and strong cooperation with internal and external parties. Our appearance at CES in January 2022 where
we unveiled our VF 8 and VF 9 models, which was posted on various social media platforms and
websites, received 7.7 million views in aggregate across social media platforms and websites within the
first 48 hours of the unveiling. We have been featured by approximately 2,500 international and local
media outlets, reaching a global audience of approximately 10 million with over 21 million impressions.
After we debuted our planned EV lineup at CES in January 2022, we began accepting reservations
globally for our VF 8 and VF 9 models and received approximately 24,000 reservations in the first 48
hours. We commenced delivery of the VF 8 “City Edition” vehicles in Vietnam in September 2022 and
in the U.S. in March 2023, and the VF 9 and VF 5 in Vietnam in March and April 2023, respectively.
First deliveries of the VF 6 and VF 7 are targeted for 2023 and
irst deliveries of the VF 3 are targeted for late 2024. In December 2022, our VF 8 and VF e34 electric
vehicles ranked among the top 10 best-selling cars in Vietnam, according to BizHub.
Highly Automated Manufacturing Capabilities: We produce vehicles out of our factory in Hai
Phong, which we believe is one of the most highly automated and modern manufacturing facilities in
Southeast Asia. Our manufacturing facility opened in 2018 and has supported the production of nine
vehicle models (four ICE models, one e-bus model and four EV models) and nine e-scooter models
with 16 different variants. The automobile manufacturing factory has a maximum production capacity
rate (i.e., maximum number of vehicles that can be constantly manufactured in a year with additional
shifts per day throughout the year) of up to 300,000 EVs per year and a lean production capacity rate
(i.e., the number of vehicles that can be constantly manufactured in a year without additional shifts) of
up to 250,000 vehicles per year. We believe our proven manufacturing capabilities will enable us to
deliver on a global scale. In addition, we benefit from an integrated supplier park at our Hai Phong
facility with our key partners on site, including FORVIA, Lear Corporation and others, which helps us
achieve economies of scale, drive manufacturing optimization and reduce costs. We source up to 60%
of the components for our EVs (excluding batteries) from suppliers in Vietnam, most of which are
established international suppliers, based on the total value of parts produced or packed in Vietnam as
a percentage of the total free-on-board cost of our vehicles (excluding batteries) as of March 31, 2023.
Our location in Hai Phong, the third-largest city in Vietnam and home to one of its largest deep-sea
ports, provides a competitive advantage in logistics as we ship our vehicles across the globe.
Additionally, in 2022, we entered into a series of agreements with North Carolina state and local
authorities to build a manufacturing facility spanning across a site measuring approximately 733
hectares in Chatham County, North Carolina. Commissioning of the facility is targeted for 2025.
Foundational Support from Vingroup: Our relationship with our corporate parent, Vingroup, affords
us a superior competitive footing relative to other peers entering the electric vehicle market, especially
through the partnership channels of Vingroup. Vingroup, together with VinFast’s shareholders, has
provided substantial financial and strategic support to VinFast since our founding. As of March 31,
2023, approximately $9.3 billion has been deployed to fund operating expenses and capital expenditures
of VinFast since 2017 by Vingroup, its affiliates and external lenders. In addition, in April 2023, we
entered into a capital funding agreement with Mr. Pham Nhat Vuong and Vingroup that provides a
framework for us to receive grants of up to VND24,000.0 billion (approximately $1 billion) from Mr.
Pham Nhat Vuong and up to VND12,000.0 billion (approximately $508.5 million) from Vingroup by
April 2024, in amounts to be mutually agreed, at such time as required by us and subject to Vingroup
and Mr. Pham having sufficient financial resources, as well as a loan of up to VND24,000.0 billion
(approximately $1 billion) from Vingroup, with disbursements of the grant and the loan to be subject
to the parties agreeing to enter into a definitive loan agreement, the financial resources of Vingroup and
necessary approvals from the relevant governing bodies of Vingroup. We have benefited from access
to the full range of IP and R&D capabilities in the Vingroup technology ecosystem. One of the Vingroup
companies that we expect will continue to play an integral role in our operation is VinES, one of our
key battery partners. We have sourced battery packs from VinES since VinES commenced production
of battery packs in the second quarter of 2022. VinES plans to be a fully integrated battery cell and pack
manufacturer and is developing its own battery cell technology and battery cell production capabilities
in Vietnam. As affiliates in the Vingroup ecosystem, VinES is expected to grow in lockstep with us to
remain a tier 1 supplier of batteries to us as we expand. To that end, another of our Vingroup affiliates
has made an investment in ProLogium, a manufacturer of next-generation solid-state batteries, which
we believe will lead to future opportunities for us and VinES to collaborate in applying next-generation
solid-state battery technology to VinFast vehicles. Additionally, in March 2023, VinES entered into a
collaboration agreement with StoreDot to develop XFC battery cells in different form-factors, in
preparation for mass production and supply. We believe this may reduce uncertainties associated with
reliance on unrelated third parties outside of the Vingroup ecosystem for batteries. VinES is in the
process of commissioning a battery pack assembly pack in Ha Tinh, Vietnam to expand its battery pack
production capabilities beyond its existing
facilities in Hai Phong, Vietnam. In addition, VinES is developing a second lithium cell facility in Ha
Tinh, Vietnam, in collaboration with Gotion. We also enjoy strong demand for our EVs from our
Vingroup affiliates. For example, we have an agreement GSM, a Vingroup-affiliated e-scooter and EV
rental and taxi services company, to sell VinFast EVs and e-scooters that will comprise GSM’s
Vietnam-based fleet.
Experienced, Diverse and Entrepreneurial Management: Our leadership team is singularly focused
on achieving the original goals set out by Vingroup when VinFast was founded: to establish a high-
quality, globally recognized e-mobility EV manufacturer in Vietnam. We are led by Global CEO, Le
Thi Thu Thuy, who also holds the position of Vice Chairwoman of Vingroup. With 25 years of
experience, Ms. Le was one of the key Vingroup executives instrumental in the push for the creation of
a tech-forward vehicle manufacturing company. She has assembled a deep bench of talent from the
automotive, technology and finance industries, unified by the spirit of “boundless together” and
dedicated to driving the electric vehicle revolution for VinFast. We also benefit from the diverse
experiences of our senior management team who come from different industries, including those that
have previously served in different roles in leading automotive and technology companies, such as Ford,
Toyota, Aston Martin, Land Rover, Stellantis and Chrysler.

Finance

The following tables present VinFast’s selected consolidated financial data. The financial information
in this proxy statement/prospectus as of December 31, 2021 and 2022 and for the years then ended and
as of March 31, 2023 and for the three months ended March 31, 2022 and 2023 has been derived from
the consolidated financial statements of VinFast Auto Pte. Ltd., which are included elsewhere in this
proxy statement/prospectus. The financial statements of VinFast Auto Pte. Ltd. are prepared in
accordance with U.S. GAAP.
VinFast fully phased out production of ICE vehicles in early November 2022 in connection with its
strategic decision to transform into an EV-only manufacturer. Accordingly, its historical results for any
prior period are not necessarily indicative of results expected in any future period.
Comparison for the Three Months Ended March 31, 2022 and 2023

Revenues
Our revenues decreased by VND1,906.8 billion, or 49.2%, to VND1,971.6 billion ($83.5 million) for
the three months ended March 31, 2023 compared to VND3,878.4 billion for the three months ended
March 31, 2022, primarily due to a decrease in revenue from sales of vehicles and spare parts and
components, partially offset by an increase in revenue from rendering of services and leasing activities.
 • Sales of vehicles. Our revenue from sales of vehicles decreased by VND1,512.7 billion, or 49.6%, to
VND1,536.6 billion ($65.1 million) for the three months ended March 31, 2023 compared to
VND3,049.3 billion for the three months ended March 31, 2022 primarily due to a decrease in ICE
vehicle sales volume in Vietnam to 28 ICE vehicles for the three months ended March 31, 2023, from
approximately 6,100 ICE vehicles for the three months ended March 31, 2022 due to our phasing out
of production of ICE vehicles in furtherance of our plan to fully transform into a pure EV player and
a decrease in the sale of e-scooters, which was attributable to a decline in the sales volume of our older
e-scooter models, including the Feliz, Klara-A2 and Tempest. This decrease was partially offset by
revenue from deliveries of the VF e34, VF 8 and VF 9 in Vietnam in the three months ended March
31, 2023. The comparative period does not include revenue from VF 8 and VF 9 sales since we
commenced delivery of these models in Vietnam in September 2022 and March 2023, respectively.

• Sales of merchandise. Our revenue from sales of merchandise decreased by VND8.1 billion, or
17.5%, to VND38.3 billion ($1.6 million) for the three months ended March 31, 2023 compared
to VND46.4 billion for the three months ended March 31, 2022. The decrease was primarily due
to fewer used vehicles sold as we shifted our business strategy for the vehicle trade-in program in
2022 to only purchasing used VinFast vehicles and no longer purchase used vehicles from other
brands.

• Sales of spare parts and components. Our revenue from sales of spare parts and components
decreased by VND515.0 billion, or 72.9%, to VND191.5 billion ($8.1 million) for the three
months ended March 31, 2023, compared to VND706.6 billion for the three months ended March
31, 2022 primarily due to a decrease in the volume of spare parts and components sold as we did
not sell any finished car batteries to VinES since the second quarter of 2022, as compared to
VND503.8 billion in revenue from sales of finished car batteries to VinES in the comparative
period. In the first quarter of 2022, we sold all of the installed batteries to VinES, who in turn
leased the batteries to VF e34 purchasers under a battery subscription program that was available
up until October 31, 2022 through VinES for the EVs that we sold in Vietnam.

• Rendering of services. Our revenue from the rendering of services increased by VND25.1 billion,
or 50.6%, to VND74.7 billion ($3.2 million) for the three months ended March 31, 2023 compared
to VND49.6 billion for the three months ended March 31, 2022 mainly due an increase in
maintenance services provided at our service centers.
• Revenue from leasing activities. Our revenue from leasing activities increased by VND104.0
billion, or 393.1%, to VND130.5 billion ($5.5 million) for the three months ended March 31, 2023
compared to VND26.5 billion for the three months ended March 31, 2022 primarily attributable
to an increase in revenue from the leasing of cars and e-scooter batteries, which was mainly due
to an increase in the number of EVs and e-scooters batteries on lease, and partially offset by a
decrease in revenue from the leasing of manufacturing parks as we completed the transfer of such
assets to VHIZ JSC in February 2022. See “Certain Relationships and Related Party
Transactions—Certain Relationships and Related Party Transactions—VinFast—Transactions
with Vingroup Affiliates—Asset Transfers to VHIZ JSC.”

Cost of sales
Our cost of sales decreased by VND706.1 billion, or 10.9%, to VND5,780.4 billion ($244.9 million)
for the three months ended March 31, 2023 compared to VND6,486.5 billion for the three months ended
March 31, 2022, primarily due to a decrease in the cost of vehicles sold, cost of spare parts and
components sold, partially offset by increase in the costs of rendering services and cost of leasing
activities.
Cost of merchandise sold. Our cost of merchandise sold decreased by VND7.7 billion, or 16.7%, to
VND38.5 billion ($1.6 million) for the three months ended March 31, 2023 compared to VND46.2
billion for the three months ended March 31, 2022. The decrease was primarily due to a decrease in
the cost of used vehicles sold, which was primarily attributable to a decline in the volume of used
vehicles sold as we shifted our business strategy for the vehicle trade-in program in 2022 to only
purchasing used VinFast vehicles.
Cost of spare parts and components sold. Our cost of spare parts and components sold decreased by
VND499.0 billion, or 73.4%, to VND180.9 billion ($7.7 million) for the year ended March 31, 2023,
compared to VND679.9 billion for the three months ended March 31, 2022 primarily due to a
decrease in the volume of finished batteries sold to VinES for the three months ended March 31, 2023
as compared to the three months ended March 31, 2022.
Cost of rendering services. Our cost of rendering services increased by VND114.6 billion, or
194.8%, to VND173.5 billion ($7.4 million) for the three months ended March 31, 2023 compared to
VND58.8 billion for the three months ended March 31, 2022 primarily due to an increase in charging
station services provided at our service centers for the three months ended March 31, 2023 as
compared to comparative period.
Cost of leasing activities. Our cost of leasing activities increased by VND137.6 billion, or 1,286.5%,
to VND148.3 billion ($6.3 million) for the three months ended March 31, 2023 compared to
VND10.7 billion for the three months ended March 31, 2022 primarily due to an increase in the cost
of leasing cars and e-scooter batteries, partially offset by a decrease in the cost of leasing
manufacturing parks as we completed the transfer of such assets to VHIZ JSC in February 2022. See
“Certain Relationships and Related Party Transactions—Certain Relationships and Related Party
Transactions—VinFast—Transactions with Vingroup Affiliates—Asset Transfers to VHIZ JSC.”
Cost of vehicles sold. Our cost of vehicles sold decreased by VND451.6 billion, or 7.9%, to
VND5,239.2 billion ($222.0 million) for the three months ended March 31, 2023 compared to
VND5,690.9 billion for the three months ended March 31, 2022, primarily attributable to a decrease
in the cost of e-scooters sold in line with a decrease in e-scooter sales, a decrease in the total cost of
ICE vehicles sold, due to the decrease in ICE vehicle sales volume in furtherance of our plan to fully
transform into a pure EV player and a decrease in accelerated amortization and depreciation expenses
due to the ICE phase out event. This decrease was partially offset by an increase in the cost of EVs as
we delivered more EVs to customers in the three months ended March 31, 2023 and an increase in
charges to write-down the carrying value of our inventories that exceeded its estimated NRV
attributable to an increase in inventories reserved for EV production and certain promotion programs
for VinFast’s customers as compared to the three months ended March 31, 2022.

Gross loss
For the reasons described above, our gross loss increased by VND1,200.6 billion, or 46.0%, to
VND3,808.8 billion ($161.4 million) for the three months ended March 31, 2023 compared to
VND2,608.1 billion for the three months ended March 31, 2022.

Research and development costs

Our R&D costs increased by VND1,431.1 billion, or 40.0%, to VND5,007.7 billion ($212.2 million)
for the three months ended March 31, 2023 compared to VND3,576.6 billion for the three months ended
March 31, 2022. The increase was primarily due to an increase in R&D costs paid to external suppliers
(including taxes on expenses paid out to suppliers) and other costs relating to the expansion of our R&D
activities for EVs.

Selling and distribution costs

Our selling and distribution costs decreased by VND43.8 billion, or 3.3%, to VND1,277.9 billion ($54.1
million) for the three months ended March 31, 2023 compared to VND1,321.7 billion for the three
months ended March 31, 2022. The decrease was primarily due to the recognition of extended warranty
expenses for ICE vehicles sold from 2019 until December 31, 2021 in the three months ended March
31, 2022, partially offset by an increase in labor costs and rental costs, which are primarily attributable
to our efforts to scale our sales operations in the U.S., Europe and Canada, including the opening of
new showrooms.
 Administrative expenses
Our administrative expenses increased by VND567.2 billion, or 105.7%, to VND1,103.8 billion ($46.8
million) for the three months ended March 31, 2023 compared to VND536.6 billion for the three months
ended March 31, 2022. The increase was primarily due to an increase in labor costs and impairment
charges in relation to our battery leasing activities under the automotive segments where the carrying
value of certain long-lived assets may not be recoverable from impairment testing, as well as an increase
in depreciation and amortization expenses and other costs for the three months ended March 31, 2023

Net other operating (expenses)/income

For the three months ended March 31, 2023, we recorded net other operating income of VND55.9
billion ($2.4 million), as compared to net other operating expenses of VND27.5 billion for the three
months ended March 31, 2022. This increase in net other operating income was primarily due to an
increase in net foreign exchange gains attributable to a favorable change in foreign exchange rates for
the three months ended March 31, 2023.

Operating loss
For the reasons described above, our operating loss increased by VND3,071.8 billion, or 38.1%, to
VND11,142.3 billion ($472.1 million) for the three months ended March 31, 2023 compared to
VND8,070.5 billion for the three months ended March 31, 2022.

Finance income
Our finance income decreased by VND28.4 billion, or 65.1%, to VND15.2 billion ($0.6 million) for
the three months ended March 31, 2023 compared to VND43.6 billion for the three months ended March
31, 2022. This decrease was primarily due to a decrease in interest income on loan receivables
attributable to a decline in financing activities between our subsidiaries and our affiliates within
Vingroup for the three months ended March 31, 2023.

Finance costs
Our finance costs increased by VND776.4 billion, or 50.2%, to VND2,322.9 billion ($98.4 million) for
the three months ended March 31, 2023 compared to VND1,546.5 billion for the three months ended
March 31, 2022. This increase was primarily due to an increase in our interest-bearing loans and
borrowings and an increase in interest rates.

Net gain/(loss) on financial instruments at fair value through profit or loss

We had net loss on financial instruments at fair value through profit or loss of VND671.5 billion ($28.5
million) for the three months ended March 31, 2023 as compared to net gain on financial instruments
at fair value through profit or loss of VND933.7 billion for the three months ended March 31, 2022.
This loss was primarily due to changes in the fair value of our cross-currency interest rate swap contracts
and changes in the fair value of the financial liability in respect of deferred preference shares issued by
VinFast Vietnam.

Tax (expense)/income
We recorded tax income of VND0.6 billion ($0.0 million) for the three months ended March 31, 2023
as compared to tax expense of VND1,020.6 billion for the three months ended March 31, 2022. This
increase in tax income was primarily due to the realization of deferred tax liabilities in 2022 incurred
in connection with our lease back of our automobile manufacturing plant, related infrastructure
transferred to VHIZ JSC and a fair value gain on cross-currency interest swap contracts, partially offset
by an increase in deferred tax expenses arising from unrealized loss incurred from certain intercompany
transactions.

Net loss for the period

For the reasons described above, our net loss for the period increased by VND4,460.5 billion, or 46.2%,
to VND14,120.8 billion ($598.3 million) for the three months ended March 31, 2023 compared to
VND9,660.3 billion for the three months ended March 31, 2022.
Comparison for the Years Ended December 31, 2021 and 2022

Revenues
Our revenues decreased by VND1,062.6 billion, or 6.6%, to VND14,965.6 billion ($634.1 million) for
the year ended December 31, 2022 compared to VND16,028.2 billion for the year ended December 31,
2021, primarily due to a decrease in revenue from sales of merchandise and vehicles, partially offset by
an increase in revenue from sales of spare parts and components, and the rendering of services.
Sales of vehicles. Our revenue from sales of vehicles decreased by VND1,507.1 billion, or 10.8%, to
VND12,391.5 billion ($525.1 million) for the year ended December 31, 2022 compared to
VND13,898.6 billion for the year ended December 31, 2021 primarily due to a decrease in ICE vehicle
sales volume in Vietnam to approximately 16,800 ICE vehicles for the year ended December 31, 2022,
from approximately 35,600 ICE vehicles for the year ended December 31, 2021 due to our phasing out
of production of ICE vehicles in furtherance of our plan to fully transform into a pure EV player. This
decrease was partially offset by revenue from initial deliveries of VF e34 and VF 8 vehicles in Vietnam
and strong sales of e-motorcycles in connection with the launch of our new models, in particular Klara
S 2022, Feliz S, Evo200, Evo200 Lite and Vento S.
Sales of merchandise. Our revenue from sales of merchandise decreased by VND1,293.2 billion, or
92.0%, to VND112.2 billion ($4.8 million) for the year ended December 31, 2022 compared to
VND1,405.4 billion for the year ended December 31, 2021. The decrease was primarily due to fewer
used vehicles sold as we shifted our business strategy for the vehicle trade-in program in 2022 to only
purchasing used VinFast vehicles and no longer purchase used vehicles from other brands. The
cessation of sales of smartphones in the U.S. market from the fourth quarter of 2021 also contributed to
the decrease in revenue from sales of merchandise for the year ended December 31, 2022.
Sales of spare parts and components. Our revenue from sales of spare parts and components increased
by VND1,534.4 billion, or 285.1%, to VND2,072.6 billion ($87.8 million) for the year ended December
31, 2022, compared to VND538.2 billion for the year ended December 31, 2021 primarily due to an
increase in the volume of spare parts and components sold for the year ended December 31, 2022 as
compared to the prior year. This includes revenue from sales of finished car batteries for the year ended
December 31, 2022 in the amount of VND503.8 billion ($21.3 million) relating to batteries installed in
our VF e34 vehicles sold in Vietnam and revenue from sales of battery components to VinES for the
year ended December 31, 2022 in the amount of VND851.8 billion ($36.1 million). In the first quarter
of 2022, we sold all of the installed batteries to VinES, who in turn leased the batteries to VF e34
purchasers under a battery subscription program that was available up until October 31, 2022 through
VinES for the EVs that we sold in Vietnam. We did not record any revenue from sales of finished car
batteries in the comparative period.
Rendering of services. Our revenue from the rendering of services increased by VND126.2 billion, or
130.6%, to VND222.7 billion ($9.4 million) for the year ended December 31, 2022 compared to
VND96.6 billion for the year ended December 31, 2021 mainly due an increase in factory management
and operation services provided to VinSmart Research and Manufacture Joint Stock Company
(“VinSmart”) from January to May 2022, as well as maintenance services provided at our service
centers.
Revenue from leasing activities. Our revenue from leasing activities increased by VND77.1 billion, or
86.3%, to VND166.5 billion ($7.1 million) for the year ended December 31, 2022 compared to
VND89.4 billion for the year ended December 31, 2021 primarily attributable to an increase in revenue
from the leasing of cars and e-scooter batteries, which was mainly due to an increase in the number of
EVs and e-scooters on lease, and partially offset by a decrease in revenue from the leasing of
manufacturing parks as we completed the transfer of such assets to VHIZ JSC in February 2022. See
“Certain Relationships and Related Party Transactions—Certain Relationships and Related Party
Transactions—VinFast—Transactions with Vingroup Affiliates—Asset Transfers to VHIZ JSC.”

Cost of sales
Our cost of sales increased by VND1,948.5 billion, or 7.7%, to VND27,232.5 billion ($1,153.9 million)
for the year ended December 31, 2022 compared to VND25,284.0 billion for the year ended December
31, 2021, primarily due to an increase in the cost of vehicles, spare parts and components sold.
Cost of vehicles sold. Our cost of vehicles sold increased by VND1,333.2 billion, or 5.7%, to
VND24,660.1 billion ($1,044.9 million) for the year ended December 31, 2022 compared to
VND23,327.0 billion for the year ended December 31, 2021, primarily attributable to an increase in
the cost of e-scooters sold in line with an increase in e-scooter sales, an increase in depreciation
expenses relating to our ICE licenses that were not transferred to VIG, an increase in charges to write-
down the carrying value of our inventories in relation to the phase-out of ICE vehicle production (the
“ICE Production Phase-out”), and an increase in charges to write-down the carrying value of our
inventories that exceeded its estimated NRV attributable to an increase in inventories reserved for EV
production and certain promotion programs for VinFast’s customers. This increase was partially offset
by a decrease in the total cost of ICE vehicles sold, due to the decrease in ICE vehicle sales volume in
furtherance of our plan to fully transform into a pure EV player.
Cost of merchandise sold. Our cost of merchandise sold decreased by VND1,247.0 billion, or 89.2%,
to VND151.4 billion ($6.4 million) for the year ended December 31, 2022 compared to VND1,398.3
billion for the year ended December 31, 2021. The decrease was primarily due to a decrease in the
cost of used vehicles sold, which was primarily attributable to a decline in the volume of used
vehicles sold as we shifted our business strategy for the vehicle trade-in program in 2022 to only
purchasing used VinFast vehicles, and a decrease in the cost of smartphones sold as we ceased selling
smartphones from the fourth quarter of 2021.
Cost of spare parts and components sold. Our cost of spare parts and components sold increased by
VND1,431.9 billion, or 327.5%, to VND1,869.1 billion ($79.2 million) for the year ended December
31, 2022, compared to VND437.2 billion for the year ended December 31, 2021 primarily due to an
increase in the volume of battery components and finished batteries sold to VinES for the year ended
December 31, 2022 as compared to the prior year.
Cost of rendering services. Our cost of rendering services increased by VND324.3 billion, or
496.0%, to VND389.6 billion ($16.5 million) for the year ended December 31, 2022 compared to
VND65.4 billion for the year ended December 31, 2021 primarily due to an increase in factory
management and operation services provided to VinSmart from January to May 2022 and
maintenance and charging station services provided at our service centers for the year ended
December 31, 2022 as compared to comparative period.
Cost of leasing activities. Our cost of leasing activities increased by VND106.2 billion, or 189.3%, to
VND162.3 billion ($6.9 million) for the year ended December 31, 2022 compared to VND56.1 billion
for the year ended December 31, 2021 primarily due to an increase in the cost of leasing cars and e-
scooter batteries, partially offset by a decrease in the cost of leasing manufacturing parks as we
completed the transfer of such assets to VHIZ JSC in February 2022. See “Certain Relationships and
Related Party Transactions—Certain Relationships and Related Party Transactions—VinFast—
Transactions with Vingroup Affiliates—Asset Transfers to VHIZ JSC.”
 Gross loss
For the reasons described above, our gross loss increased by VND3,011.1 billion, or 32.5%, to
VND12,266.9 billion ($519.8 million) for the year ended December 31, 2022 compared to VND9,255.8
billion for the year ended December 31, 2021.

Research and development costs

Our R&D costs increased by VND10,684.5 billion, or 115.4%, to VND19,939.9 billion ($844.9 million)
for the year ended December 31, 2022 compared to VND9,255.4 billion for the year ended December
31, 2021. The increase was primarily due to an increase in R&D costs paid to external suppliers
(including taxes on expenses paid out to suppliers) and other costs relating to the expansion of our R&D
activities for EVs.

Selling and distribution costs

Our selling and distribution costs increased by VND3,009.9 billion, or 136.6%, to VND5,213.7 billion
($220.9 million) for the year ended December 31, 2022 compared to VND2,203.8 billion for the year
ended December 31, 2021. The increase was primarily due to an increase in labor costs, which was
primarily attributable to our efforts to scale our sales operations in the U.S., Europe and Canada,
including the opening of new showrooms, and an increase in our marketing and advertising expenses,
which was principally due to our participation in the New York International Auto Show 2022,
Consumer Electronic Show 2022, Paris Motor Show, 2022 IRONMAN U.S. series, EVS 35 Oslo, and
product showcases in the U.S., Canada, Europe and Vietnam. The selling and distribution costs for the
year ended December 31, 2022 also included extended warranty expenses for ICE vehicles sold from
2019 up until December 31, 2021.

Administrative expenses
Our administrative expenses increased by VND1,585.5 billion, or 65.4%, to VND4,010.0 billion
($169.9 million) for the year ended December 31, 2022 compared to VND2,424.6 billion for the year
ended December 31, 2021. The increase was primarily due to an increase in labor costs, cost of external
services as we expanded our administrative operations within our overseas subsidiaries, and impairment
charges in relation to our battery leasing activities under the automotive and e-scooter segments where
the carrying value of certain long-lived assets may not be recoverable from impairment testing, as well
as an increase in depreciation and amortization expenses and other costs.

Compensation expenses
Our compensation expenses decreased by VND4,230.9 billion, or 97.5%, to VND109.4 billion ($4.6
million) for the year ended December 31, 2022 compared to VND4,340.3 billion for the year ended
December 31, 2021. The decrease was mainly due to our recognition of compensation costs paid to
certain suppliers of our ICE business for the early termination of our contracts with them in connection
with the phase-out of our ICE business in the year ended December 31, 2021.

Net other operating (expenses)/income

For the year ended December 31, 2022, we recorded net other operating expenses of VND716.4 billion
($30.4 million), as compared to net other operating income of VND412.5 billion for the year ended
December 31, 2021. This increase in net other operating expenses was primarily due to an increase in
net foreign exchange losses which was attributable to an adverse change in foreign exchange rates for
the year ended December 31, 2022, partially offset by a decrease in loss from disposal of long-lived
assets and penalties in the year ended December 31, 2021.

Operating loss
For the reasons described above, our operating loss increased by VND15,189.0 billion, or 56.1%, to
VND42,256.4 billion ($1,790.5 million) for the year ended December 31, 2022 compared to
VND27,067.4 billion for the year ended December 31, 2021.

Finance income
Our finance income decreased by VND358.1 billion, or 80.3%, to VND88.1 billion ($3.7 million) for
the year ended December 31, 2022 compared to VND446.1 billion for the year ended December 31,
2021. This decrease was primarily due to a decrease in interest income on loan receivables attributable
to a decline in financing activities between our subsidiaries and our affiliates within Vingroup for the
year ended December 31, 2022.

Finance costs
Our finance costs increased by VND3,361.6 billion, or 73.1%, to VND7,959.8 billion ($337.3 million)
for the year ended December 31, 2022 compared to VND4,598.2 billion for the year ended December
31, 2021. This increase was primarily due to an increase in our interest-bearing loans and borrowings
and an increase in interest rates.

Net gain on financial instruments at fair value through profit or loss

We had net gain on financial instruments at fair value through profit or loss of VND1,226.0 billion
($51.9 million) for the year ended December 31, 2022 as compared to net loss on financial instruments
at fair value through profit or loss of VND1,710.0 billion for the year ended December 31, 2021. This
gain was primarily due to changes in the fair value of our cross-currency interest rate swap contracts
and changes in the fair value of the financial liabilities in respect of deferred preference shares issued
by VinFast Vietnam.

Investment gain
We had no investment gain for the year ended December 31, 2022 compared to VND956.6 billion for
the year ended December 31, 2021. During the year ended December 31, 2021, the investment gain was
primarily attributable to the fair value gain from equity instruments measured at fair value through profit
or loss from changes in the prices of the shares of Vinhomes and Vingroup that we held until March
2021. In March 2021, we effected a demerger transaction following which we no longer held those
shares.

Share of losses from equity investees

We did not record a share of losses from equity investees for the year ended December 31, 2022
compared to VND36.8 billion for the year ended December 31, 2021, primarily due to a step-up
acquisition of an equity investee to our subsidiary, which was subsequently merged into us, and our
disposal of the remaining equity investee in 2021.

Tax expense
Our tax expenses increased by VND737.5 billion, or 352.5%, to VND946.7 billion ($40.1 million) for
the year ended December 31, 2022 compared to VND209.2 billion for the year ended December 31,
2021. This increase was primarily due to an increase in deferred tax expenses incurred in connection
with our lease back of the automobile manufacturing plant and the related infrastructure transferred to
VHIZ JSC and the realization of deferred tax liabilities in 2020 arising from a fair value gain on cross-
currency interest rate swap contracts, partially offset by a decrease in deferred tax expenses that was
largely attributable to investment gains recorded for the year ended December 31, 2021 from changes
in the prices of the shares of Vinhomes and Vingroup (as described above) and a decrease in income
tax expenses attributable to a decrease in the taxable profit of our subsidiary for the year ended
December 31, 2022.

Net loss for the year

For the reasons described above, our net loss for the year increased by VND17,629.9 billion, or 54.7%,
to VND49,848.9 billion ($2,112.2 million) for the year ended December 31, 2022 compared to
VND32,219.0 billion for the year ended December 31, 2021.

Liquidity and Capital Resources

We have had negative net cash flows from operating activities and expect our cash flows to remain
negative at least for the near term as we scale and ramp up production and sales of our vehicles, establish
our manufacturing operations and expand our marketing, sales and service network in our target markets
outside of Vietnam.
We had net losses of VND32,219.0 billion and VND49,848.9 billion ($2,112.2 million) in 2021 and
2022 respectively. We had net losses for the period of VND9,660.3 billion and VND14,120.8 billion
($598.3 million) for the three months ended March 31, 2022 and 2023, respectively. We had net cash
flows used in operating activities of VND28,969.1 billion and VND35,628.4 billion ($1,509.7 million)
in 2021 and 2022, respectively. We had net cash flows used in operating activities of VND9,168.1
billion and VND19,159.1 billion ($811.8 million) for the three months ended March 31, 2022 and 2023,
respectively. VinFast expects to continue to incur operating and net losses in the near term as it scales
the production of its VF e34 (C-segment), VF 5 (A-segment), VF 6 (B-segment), VF 7 (C-segment),
VF 8 (D-segment), VF 9 (E-segment) and VF 3 (mini cars segment) vehicles, establish its
manufacturing operations and expand its marketing, sales and service network in its target markets
outside of Vietnam. In addition, we had total current liabilities of VND66,225.2 billion ($2,806.2
million) and VND83,551.0 ($3,540.3 million) and accumulated losses of VND127,188.5 billion
($5,389.3 million) and VND141,271.5 billion ($5,986.1 million) as of December 31, 2022 and March
31, 2023, respectively. As of December 31, 2022 and March 31, 2023, we had cash and cash equivalents
of VND4,271.4 billion ($181.0 million) and VND3,740.8 billion ($158.5 million), respectively. We
hold and maintain cash and cash equivalents taking into account our current business plans, expected
monthly cash flows from operations and expected monthly cash outlays on a monthly basis.
Our primary requirements for liquidity are to finance working capital, capital expenditures and general
corporate purposes. Since our inception, we have financed our operations primarily though debt and
equity financing activities, including support from our parent company, Vingroup, and our Chairman,
Mr. Pham Nhat Vuong in the form of borrowings, corporate loan guarantees and capital contributions.
As of March 31, 2023, approximately $9.3 billion has been deployed to fund operating expenses and
capital expenditures of VinFast since 2017 by Vingroup, its affiliates and external lenders. In addition,
in April 2023, we entered into a capital funding agreement with Mr. Pham Nhat Vuong and Vingroup
that provides a framework for us to receive grants of up to VND24,000.0 billion (approximately $1
billion) from Mr. Pham Nhat Vuong and up to VND12,000.0 billion (approximately $508.5 million)
from Vingroup by April 2024, in amounts to be mutually agreed, at such time as required by us and
subject to Vingroup and Mr. Pham having sufficient financial resources, as well as a loan of up to
VND24,000.0 billion (approximately $1 billion) from Vingroup, with disbursements of the grant and
the loan to be subject to the parties agreeing to enter into a definitive loan agreement, the financial
resources of Vingroup and necessary approvals from the relevant governing bodies of Vingroup. For
more information, see “Certain Relationships and Related Party Transactions—VinFast—Transactions
with Vingroup Affiliates—Capital funding agreement.”
Our debt service obligations for the remainder of 2023 amount to VND11,805.7 billion ($500.2
million). See “VinFast’s Management’s Discussion and Analysis of Financial Condition and Results of
Operations — Indebtedness.” In addition, as the Business Combination will constitute the occurrence
or non-occurrence of a qualifying liquidity event in respect of VinFast occurring on or prior to
September 25, 2023, holders of $625.0 million aggregate principal amount of Exchangeable Bonds (as
defined herein) issued by Vingroup will have the right to require Vingroup to redeem the Exchangeable
Bonds. If the Business Combination will not be a qualifying liquidity event, such redemption right will
be exercisable on or about the second anniversary from the issuance dates of the Exchangeable Bonds.
Thereafter, Vingroup would be contractually permitted to exercise its right to require VinFast to
purchase VinFast Vietnam shares that were issued to Vingroup in connection with the issuance of the
Exchangeable Bonds. Vingroup’s right to such repurchase should be considered in light of the letters
of support that Vingroup has issued to provide financial support sufficient to meet VinFast’s need for
continued operation.
 Net cash flows used in operating activities
Net cash flows used in operating activities for the three months ended March 31, 2023 were
VND19,159.1 billion ($811.8 million). The difference between our net cash flows used in operating
activities and our net loss for the period of VND14,120.8 billion ($598.3 million) for the three months
ended March 31, 2023 was primarily the result of adjustments for the following items: VND3,299.4
billion ($139.8 million) of provision related to compensation expenses, assurance-type warranties and
net realizable value of inventories, VND1,104.2 billion ($46.8 million) of depreciation of property,
plant and equipment, VND760.2 billion ($32.2 million) of change in amortized costs of financial
instruments measured at amortized cost other than nominal interest, VND671.5 billion ($28.5 million)
of net losses on financial instruments at fair value through profit or loss, VND480.6 billion ($20.4
million) of impairment of property, plant and equipment, VND207.7 billion ($8.8 million) of changes
in operating lease right-of-use assets and VND56.1 billion ($2.4 million) of amortization of intangible
assets, partially offset by VND87.6 billion ($3.7 million) of unrealized foreign exchange gain. Net cash
flows used in operating activities for the three months ended March 31, 2023 also reflected a
VND11,529.9 billion ($488.6 million) increase in working capital, primarily attributable to an increase
in inventories of VND6,479.6 billion ($274.6 million) mainly due to our reservation of raw materials
for EV production in the year 2023, and a VND6,633.4 billion ($281.1 million) decrease in trade
payables, deferred revenue and other payables mainly due to our settlement of payables to certain
related parties, partially offset by a decrease in trade and other payables to third parties arising from an
increase in our payables to suppliers of EV parts and raw materials and by a decrease in trade receivables
and advance to suppliers of VND1,867.7 billion ($79.1 million) arising from a decrease in our advance
to suppliers for the purchase of materials and R&D costs.
Net cash flows used in operating activities for the year ended December 31, 2022 were VND35,628.4
billion ($1,509.7 million). The difference between our net cash flows used in operating activities and
our net loss for the year of VND49,848.9 billion ($2,112.2 million) for the year ended December 31,
2022 was primarily the result of adjustments for the following items: VND5,988.5 billion ($253.8
million) of provision related to compensation expenses, assurance-type warranties and write-downs of
inventories, VND3,924.7 billion ($166.3 million) of depreciation of property, plant and equipment,
VND2,341.9 billion ($99.2 million) of amortization of intangible assets and VND1,999.9 billion ($84.7
million) of change in amortized costs of financial instruments measured at amortized cost, partially
offset by net gain on financial instruments at fair value through profit or loss of VND1,226.0 billion
($51.9 million). Net cash flows used in operating activities for the year ended December 31, 2022 also
reflected a VND2,274.1 billion ($96.4 million) increase in working capital, primarily attributable to an
increase in inventories of VND20,241.7 billion ($857.7 million) mainly due to our reservation of raw
materials for EV production in the year 2023, partially offset by an increase in trade and other payables
of VND17,792.8 billion ($753.9 million) arising from an increase in our payables to suppliers of EV
supplies and raw materials.
Net cash flows used in operating activities for the year ended December 31, 2021 were VND28,969.1
billion. The difference between our net cash flows used in operating activities and our net loss for the
year of VND32,219.0 billion for the year ended December 31, 2021 was primarily the result of
adjustments for the following items: VND6,513.5 billion of provision related to compensation
expenses, assurance-type warranties and write-downs of inventories, VND3,981.4 billion of
depreciation of property, plant and equipment, VND897.6 billion of amortization of intangible assets,
VND1,710.0 billion of net loss on financial instruments at fair value through profit or loss and
VND1,156.1 billion of change in amortized costs of financial instruments measured at amortized cost,
partially offset by VND956.6 billion of investment gain. Net cash flows used in operating activities also
reflected a VND10,561.6 billion increase in working capital, primarily attributable to an increase in
trade and other receivables of VND7,406.1 billion, primarily due to an increase in our advances to
suppliers for the purchase of materials and R&D costs of EV projects, and an increase in inventories of
VND3,857.7 billion primarily due to our reservation of raw materials for EV production in 2022. This
increase was partially offset by a VND760.1 billion increase in trade and other payables due to an
increase in our payables to suppliers of EV supplies and raw materials.

Net cash flows used in/from investing activities

Net cash flows used in investing activities for the three months ended March 31, 2023 were VND6,131.7
billion ($259.8 million), consisting of purchase of property, plant and equipment, and intangible assets,
such as machineries and equipment for EV projects, construction of showrooms and charging stations
at target markets and construction of the factory in the U.S. of VND7,599.8 billion ($322.0 million),
partially offset by proceeds from the disposal of property, plant and equipment of VND922.7 billion
($39.1 million) mainly relating to our disposal of battery production facilities to VinES in 2022 and the
collection of loans of VND545.4 billion ($23.1 million) relating to loan receivables from a related party.
Net cash flows used in investing activities for the year ended December 31, 2022 were VND16,038.9
billion ($679.6 million), consisting primarily of purchase of property, plant and equipment, and
intangible assets, such as machineries and equipment for EV projects, construction of showrooms and
charging stations at target markets and construction of the factory in the U.S. of VND17,681.7 billion
($749.2 million), in addition to our repayment under a business investment and cooperation contract
(“BCC”) in an amount equal to the capital contribution received from VHIZ JSC net of the consideration
for the transfer of various infrastructural assets to VHIZ JSC in the amount of VND968.8 billion ($41.0
million), partially offset by proceeds from disposal of property, plant and equipment of VND1,413.0
billion ($59.9 million) mainly relating to our disposal of battery production facilities to VinES, and the
collection of loans of VND1,034.6 billion ($43.8 million) relating to loan receivables from related
parties.
Net cash flows from investing activities for the year ended December 31, 2021 were VND2,420.1
billion, consisting primarily of net collection of loans of VND7,835.5 billion (equal to the collection of
loans minus the disbursement of loans) related to loan receivables from related parties, partially offset
by the purchase of property, plant and equipment, and intangible assets, such as machineries and
equipment for EV projects and the supplier park in our Hai Phong facility, of VND6,007.9 billion.

Net cash flows from financing activities

Net cash flows from financing activities for the three months ended March 31, 2023 were VND25,424.4
billion ($1,077.3 million), consisting of proceeds from borrowings of VND22,802.5 billion ($966.2
million) and cash received under a business cooperation contract of VND5,875.0 billion ($248.9
million) to fund the development and construction of VinFast’s automobile manufacturing facilities in
Hai Phong, which were partially offset by our repayment of borrowings of VND3,253.1 billion ($137.8
million), which are related to syndicated loans and loans from commercial banks and related parties.
Net cash flows from financing activities for the year ended December 31, 2022 were VND52,945.1
billion ($2,243.4 million), consisting of proceeds from borrowings of VND87,660.1 billion ($3,714.4
million), capital contribution from owners of VND6,317.1 billion ($267.7 million) for the financing of
our business operations (which includes repayment of borrowings and to fund our capital and revenue
expenditures) and deemed contributions from owners of VND646.7 billion ($27.4 million) in relation
to the disposal of the ICE Assets and the financial support from our Chairman in relation to the
additional cost of the extended warranty period for ICE vehicles sold before December 31, 2021, which
were partially offset by our repayment of borrowings of VND41,637.1 billion ($1,764.3 million), which
are related to syndicated loans and loans from commercial banks and related parties, and by our payment
for initial public offering costs of VND41.6 billion ($1.8 million).
Net cash flows from financing activities for the year ended December 31, 2021 were VND28,855.2
billion, primarily consisting of proceeds from borrowings of VND38,042.8 billion and capital
contribution from owners of VND9,988.5 billion for the financing of our business operations (which
includes repayment of borrowings and to fund our capital and revenue expenditures), which were
partially offset by our repayment of borrowings of VND18,677.2 billion related to syndicated loans and
loans from commercial banks and related parties.

Seasonality

In Vietnam, sales are generally higher in the two months before the Tet holiday, which is usually in
December and January of the next year. Demand for new vehicles in Vietnam typically declines in July,
which is the “ghost month” and between late January and early March following the Tet holiday, or
Lunar New Year. Our limited operating history as an international EV manufacturer makes it difficult
for us to judge the exact nature or extent of the impacts of seasonality on our business.
Inflation

Our functional and reporting currency is VND. We incur some of our revenues and expenses in other
currencies. As a result, we are exposed to the risk that the rate of inflation in countries where we transact
or conduct business, other than Vietnam, will exceed the rate of devaluation of such countries’
currencies in relation to the dollar or that the timing of any such devaluation will lag behind inflation in
such countries. To date, we have been affected by changes in the rate of inflation or the exchange rates
of other countries’ currencies compared to the VND, and we cannot assure you that we will not be
adversely affected in the future. Inflation impacts our operating costs. A prolonged period of inflation
could cause interest rates, fuel, wages, commodity prices, raw material costs, shipping and freight costs,
labor costs and other costs to increase. For example, inflationary pressures in 2021 and 2022 increased
our commodity, freight and raw material costs and the effects of inflation may have an adverse impact
on these and other costs, margins and profitability in the future. We implement initiatives from time to
time to alleviate inflationary pressures, such as flexible supply arrangements, including an index-based
pricing mechanism and dual-supplier approach, advance purchase arrangements, localization of certain
vehicle components and parts to leverage lower manufacturing and labor costs in Vietnam and our
partnership with VinES to optimize battery costs. For more information, see “Risk Factors—Risks
Related to VinFast’s Business and Industry—VinFast may be unable to adequately control the costs
associated with its operations.”

Quantitative and Qualitative Disclosures about Market Risk

Our future income, cash flows and fair values related to financial instruments are subject to interest rate
risk, foreign currency risk, liquidity risk and commodity price risk.
Interest rate risk
We are exposed to interest rate risk due to our debt obligations with floating interest rates. As of March
31, 2023, VND58,757.8 billion ($2,489.7 million), or 95.8% of our total debt had floating interest rates.
We define “total debt” as the sum of our short-term and current portion of long-term interest-bearing
loans and borrowings and long-term interest-bearing loans and borrowings, excluding borrowings from
related parties. We hedge a portion of this risk by entering into interest rate swaps for certain loans and
borrowings. The recent rise in interest rates has led to increases in interest rates of our floating interest
loans, leading to increases in finance costs. To manage this risk, we monitor market movements to select
the appropriate time and terms to consider when entering into these interest rate swaps transactions.
As of March 31, 2023, the benchmark used in the majority of our floating rate loans was LIBOR (3M
or 6M) plus a margin ranging from 0.75% to 3.5% per year or SOFR (3 M or 6 M) plus a margin ranging
from 2.6% to 3.6% per year. An increase or decrease in the LIBOR of 0.05%, holding all other variables
constant, would result in an approximately increase or decrease of VND27.3 billion in our net loss for
the year ended December 31, 2021. An increase or decrease in the LIBOR of 1.5%, holding all other
variables constant, would result in an increase or decrease in the fair value of cross currency interest
rate swap derivative instruments of approximately VND254 billion or VND263.5 billion, respectively,
in our net loss for the year ended December 31, 2022.
Foreign exchange risk
Our functional and reporting currency is Vietnamese Dong. We are exposed to foreign exchange risk
in respect of our operating activities, including the import of some supplies and components used in the
manufacture of our EVs, which includes the chassis, powertrain, and electrical and electronic parts, and
our loans and borrowings denominated in non-VND currencies, in particular U.S. dollars. As of
December 31, 2022 and March 31, 2023, 63.9% and 57.8% of our total debt (which consists of our
short-term and current portion of long-term interest-bearing loans and borrowings and long-term
interest-bearing loans and borrowings, excluding
borrowings from related parties) were denominated in U.S. dollars, respectively, 35.9% and 42.2% were
denominated in Vietnamese Dong, respectively, and 0.2% and nil was denominated in euros,
respectively. Our exposure to foreign exchange risk will increase as revenue from the sales of EVs and
the provision of related services in other markets, such as North America and Europe, which are
denominated in foreign currencies, contribute a greater share of our revenue. We hedge a portion of this
risk by entering into foreign exchange rates swap and foreign exchange forward contracts for certain
loans and borrowings.
Liquidity risk
We are exposed to liquidity risk. We have managed this liquidity risk by arranging for long-term credit
facilities with the banks, seeking financial support from Vingroup, including in the form of debt
financing, corporate loan guarantees and capital contributions, or issuing long-term corporate bonds, to
ensure that our outstanding loans and bonds will be repaid after we complete this Business Combination
and roll out our EV business and expansion initiatives.
For more information, see “VinFast is a growth stage company that has a history of losses, negative
cash flows from operating activities and negative working capital” and “VinFast will require significant
additional capital to support business growth. VinFast expects to fund its capital requirements through
additional debt and equity financing, including related party financing.
Commodity price risk
We utilize various commodities in the manufacture of our vehicles, including steel, aluminum and resin,
while our battery suppliers, including VinES, also utilize such commodities in the production of battery
cells. This exposes us, directly and indirectly, to commodity price risk, as commodity prices are subject
to fluctuations due to various factors beyond our control, including market conditions, global demand
for these materials and escalations of hostilities, such as the launch of a military action in Ukraine by
Russia on February 24, 2022.
Risks Related to VinFast’s Business and Industry

VinFast is a growth stage company that has a history of losses, negative cash flows from operating
activities and negative working capital.

VinFast had net losses of VND32,219.0 billion, VND49,848.9 billion ($2,112.2 million), VND9,660.3
billion and VND14,120.8 billion ($598.3 million) in 2021, 2022 and the three months ended March 31,
2022 and 2023, respectively. VinFast had net cash flows used in operating activities of VND28,969.1
billion, VND35,628.4 billion ($1,509.7 million), VND9,168.1 billion and VND19,159.1 billion ($811.8
million) in 2021, 2022 and the three months ended March 31, 2022 and 2023, respectively. VinFast
expects to continue to incur operating and net losses in the near term as it scales the production of its
VF e34 (C-segment), VF 5 (A-segment), VF 6 (B-segment), VF 7 (C-segment), VF 8 (D-segment), VF
9 (E-segment) and VF 3 (mini cars segment) vehicles, establish its manufacturing operations and expand
its marketing, sales and service network in its target markets outside of Vietnam.

VinFast’s ability to achieve profitability, positive cash flows from operating activities and a net working
capital surplus will depend on many factors, including its ability to achieve commercial acceptance,
increase utilization of its production capacity to produce EVs in large quantities as planned and increase
sales of its EVs in its target markets beyond Vietnam where its operations have historically been
focused, including the U.S., Canada, France, Germany, the Netherlands and, in the long-term, elsewhere
in Asia and Europe and other factors discussed in this “Risk Factors” section.

Vingroup has issued support letters in connection with the audit of VinFast’s 2021 and 2022 financial
statements and the review of VinFast’s unaudited interim condensed consolidated financial statements
for the three months ended March 31, 2023 to the effect that Vingroup has the ability and will continue
to provide financial support sufficient to meet VinFast’s need for continued operation, subject to
necessary procedures to facilitate such support. VinFast’s financial statements have been issued on a
going concern basis taking into consideration the support letters, its business plan and the cash and cash
equivalents held by its group. The latest support letter is valid from the issuance date of VinFast’s
unaudited interim condensed consolidated financial statements for the three months ended March 31,
2023, until the earliest of the date on which VinFast obtains adequate third party funding for its capital
requirements or the date on which Vingroup ceases to control VinFast, but in all cases no sooner than
the date falling 12 months after the issuance date of the unaudited consolidated interim condensed
financial statements for three months ended March 31, 2023.
VinFast will require significant additional capital to support business growth. VinFast expects to
fund its capital requirements through additional debt and equity financing, including related party
financing. Such capital might not be available on commercially reasonable terms, or at all, and could,
among other things, be burdensome and lead to dilution of your shareholding in VinFast.
The design, manufacture, sale and servicing of automobiles is a significantly capital intensive business.
As of March 31, 2023, VinFast had total debt (which is VinFast’s short-term and current portion of
long-term interest-bearing loans and borrowings and long-term interest-bearing loans and borrowings,
excluding borrowings from related parties) of VND61,349.0 billion ($2,599.5 million) and debt service
obligations for the remainder of 2023 amounting to VND11,805.7 billion ($500.2 million). In addition,
as the Business Combination will constitute the occurrence or non-occurrence of a qualifying liquidity
event in respect of VinFast occurring on or prior to September 25, 2023, holders of $625.0 million
aggregate principal amount of Exchangeable Bonds (as defined herein) issued by Vingroup will have
the right to require Vingroup to redeem the Exchangeable Bonds. If the Business Combination will not
be a qualifying liquidity event, such redemption right will be exercisable on or about the second
anniversary from the issuance dates of the Exchangeable Bonds. Thereafter, Vingroup would be
contractually permitted to exercise its right to require VinFast to purchase VinFast Vietnam shares that
were issued to Vingroup in connection with the issuance of the Exchangeable Bonds. Vingroup’s right
to such repurchase should be considered in light of the letters of support that Vingroup has issued to
provide financial support sufficient to meet VinFast’s need for continued operation. VinFast expects to
meet its present requirements in respect of working capital, obligations under its loans, borrowings and
other financial liabilities and committed capital expenditures primarily by drawing on its capital funding
agreement with, and other expected financial support from, Mr. Pham Nhat Vuong and Vingroup, as
well as its cash on hand, cash flow from operations, existing third-party loans and borrowings and the
net proceeds that it expects to receive from this Business Combination. In the next few years, VinFast
expects to require a significant amount of additional capital, including working capital, to scale the
production of its VF e34 (C-segment), VF 5 (A-segment), VF 6 (B-segment), VF 7 (C-segment), VF 8
(D-segment), VF 9 (E-segment) and VF 3 (mini cars segment) vehicles, its production capacity
expansion in both Vietnam and the U.S., showroom roll-out and other items. VinFast will also require
a significant amount of additional working capital to support its business expansion in the medium-
term.

Vingroup is VinFast’s largest shareholder and has provided it with funding in the form of debt financing,
corporate loan guarantees, and capital contributions. Vingroup has also issued support letters in
connection with the audit of VinFast’s 2021 and 2022 financial statements, as described above. In
addition, in April 2023, we entered into a capital funding agreement with Mr. Pham Nhat Vuong and
Vingroup that provides a framework for us to receive grants of up to VND24,000.0 billion
(approximately $1 billion) from Mr. Pham Nhat Vuong and up to VND12,000.0 billion (approximately
$508.5 million) from Vingroup by April 2024, in amounts to be mutually agreed, at such time as
required by us and subject to Vingroup and Mr. Pham having sufficient financial resources, as well as
a loan of up to VND24,000.0 billion (approximately $1 billion) from Vingroup, with disbursements of
the grant and the loan to be subject to the parties agreeing to enter into a definitive loan agreement, the
financial resources of Vingroup and necessary approvals from the relevant governing bodies of
Vingroup. VinFast expects to continue to depend, in part, on financing and other support from its
affiliates in the future, including to meet its present requirements in respect of working capital,
committed capital expenditures and obligations under our loans, borrowings and other financial
liabilities. There can be no assurance that in the future financing from VinFast’s affiliates will continue
to be available to VinFast in sufficient amounts or at all due to their level of indebtedness, other financial
obligations or overall funding position, or that, as an alternative to financing from its affiliates, VinFast
will be able to obtain third-party debt financing or access the capital markets in a timely manner and on
terms that are acceptable to it or at all. In addition, a number of VinFast’s financing agreements provide
that various payment delays or defaults by Vingroup would constitute a cross default under the terms
of VinFast’s agreements, and therefore an adverse change in Vingroup’s financial condition could
impact VinFast’s debt maturity profile and liquidity requirements.

VinFast’s outstanding indebtedness may affect its ability to obtain additional financing to meet its future
requirements. Some of VinFast’s financing arrangements require VinFast and Vingroup, as guarantor,
to ensure a collateral cover ratio of at least one times when measured on a quarterly basis. See
“VinFast’s Management’s Discussion and Analysis of Financial Condition and Results of Operations—
Indebtedness.” VinFast’s collateral cover ratio in respect of loans totaling VND29,636.8 billion
($1,255.8 million), and VND2,290.6 billion ($97.1 million) fell below the required ratio as of
September 30, 2022 and December 31, 2022, respectively, and in respect of certain bonds with
outstanding balance amounting to VND13,378.0 billion ($566.9 million) fell below the required ratio
as of March 31, 2023. In each case, the required ratio was subsequently restored by Vingroup. If the
value of the collateral securing VinFast’s borrowings declines in the future, VinFast will be required to
provide, or arrange for, additional collateral to ensure its compliance with the terms of these financing
arrangements. If VinFast is unable to do so, including due to the inability of Vingroup to provide the
support that it requires, it may result in a breach of the terms of VinFast’s financing arrangements.

Any inability to raise financing on commercially acceptable terms or at all could result in VinFast’s
failure to implement its business plans and strategy or cause VinFast to experience disruptions in its
operating activities, and its business, financial condition, results of operations, cash flows and prospects
would be materially and adversely affected.

VinFast faces risks associated with being a new entrant in the EV industry and the marketing and
sale of its EVs in international markets where it only recently began delivering vehicles.

VinFast was established in Vietnam in 2017 and commenced the delivery of ICE vehicles in 2019.
VinFast’s operations prior to 2021 have focused primarily on the manufacture and sale of ICE vehicles
and electric scooters. In 2021, VinFast began delivering its first EV model in Vietnam, the VF e34, and
in 2022, it began accepting reservations for its second to fourth models, the VF 8, VF 9, and VF 5, with
VF 8 deliveries commencing in September 2022 in Vietnam and in March 2023 in the U.S., and VF 9
and VF 5 deliveries commencing in March and April 2023, respectively, in Vietnam.

VinFast has faced and may continue to face many of the risks and challenges typically associated with
commencing operations in the relatively new EV industry. VinFast began U.S. deliveries of the VF 8
in March 2023 from its initial U.S. shipment of 999 VF 8 “City Edition” vehicles in both Eco and Plus
trims. The “City Edition” was VinFast’s first version of the VF 8 to go through the relevant testing and
approval processes in the U.S. and therefore completed those processes and was available for delivery
sooner than the VF 8 (87.7 kWh battery). VinFast offered a $3,000 discount on the VF 8 “City Edition”
to select customers who had made reservations for the VF 8 in the U.S. The “City Edition” is also
available on a 24-month or 36-month lease basis for California residents only. Customers were given
the option to receive the “City Edition” at the discounted price or maintain their existing reservation for
the VF 8 (87.7 kWh battery). Certain customers who opted to take delivery of the VF 8 “City Edition”
may be eligible for the VinFast Lease Forward Program after 12 months of leasing, and subject to the
terms and conditions of the program, would be able to exchange their VF 8 “City Edition” for the VF 8
(87.7 kWh battery) with equivalent trim. Customers may prefer to wait for the VF 8 (87.7 kWh battery)
rather than purchase or lease the “City Edition,” or cancel their reservations entirely. In April 2023,
VinFast dispatched a shipment of approximately 1,900 VF 8 (87.7 kWh battery) and plans to deliver
the VF 8 vehicles from this shipment to North American customers in the second half of 2023 that use
battery components that will result in a longer driving range than the VF 8 “City Edition”. Deliveries
in Europe are expected to begin in the second half of 2023. Our ability to deliver the VF 8 (87.7 kWh
battery) on schedule will depend on our ability to complete EPA testing and obtain the necessary
approvals and licenses, which we completed and obtained in May 2023. Further delays in deliveries of
the VF 8 (87.7 kWh battery) could potentially lead to increases in cancelations, customer dissatisfaction
or negative publicity.

Unforeseen risks associated with moving from an ICE to EV manufacturer could adversely affect
VinFast. It may be difficult to predict VinFast’s future revenues and appropriately budget for its
expenses given its relatively limited operating history in the EV industry. VinFast’s future success will
depend on its ability to continue designing, producing and selling safe, high-quality vehicles as it
transitions to being an EV-only manufacturer.

VinFast’s brand, reputation, public credibility and consumer confidence in its business could be
harmed by negative publicity, and VinFast may not succeed in growing its brand in markets outside
Vietnam.
VinFast’s business and prospects are affected by its ability to grow its brand in markets outside Vietnam.
VinFast expects that its ability to develop, maintain, and strengthen credibility and confidence in its
brand will depend on the acceptance of its vehicles in new markets, its ability to deliver vehicles that
meet its target specifications within the announced delivery schedules, general customer satisfaction
and the success of its marketing and branding efforts, among other factors.

VinFast’s reputation and brand are vulnerable to threats that can be difficult or impossible to predict,
control, and costly or impossible to remediate. As a new entrant in the EV industry and Vietnam’s first
global EV manufacturer, VinFast has received, and expects it and its EVs to continue to receive,
heightened attention and scrutiny, including in the media in its international target markets and on social
media, and particularly as it begins to deliver its vehicles in international markets in larger quantities in
2023 and beyond.

Any negative media or social media coverage, reviews or reviews that compare VinFast unfavorably to
competitors could adversely affect its brand, consumer confidence and demand for its vehicles. For
example, VinFast has been the subject of negative press in relation to its introduction of the VF 8 “City
Edition” in the U.S. market and the VF 8 “City Edition” shorter driving range compared to its
forthcoming VF 8 (87.7 kWh battery), delays in U.S. deliveries of the VF 8 and the reduction of its
workforce in the U.S. and Canada as it sought to optimize its North America operations. In October
2022, VinFast recalled approximately 700 of its VF e34 vehicles, which it sells exclusively in Vietnam,
after being informed by its airbag supplier that certain side impact sensors for the airbags could
malfunction. In February 2023, VinFast recalled approximately 2,700 of its VF 8 vehicles sold in
Vietnam to repair the bolts that connect the front brake caliper to the steering knuckle in the recalled
vehicles, and performed the same repair on other VF 8 vehicles in its global inventory. In May 2023,
VinFast recalled 999 of its VF 8 vehicles in the U.S. to install a software update for the vehicle’s
multimedia display screen after VinFast’s routine performance monitoring identified that the display
intermittently appeared blank during operation. See “—VinFast may be unable to adequately control
the costs associated with its operations.”

Such recalls, whether voluntary or involuntary, and delays in production, shipment and/or delivery of
vehicles could harm VinFast’s reputation, particularly as a new entrant, and discourage additional
reservations and vehicle sales, and otherwise materially and adversely affect its business and operations.
Negative publicity about VinFast could lead customers to cancel reservations and affect its ability to
attract new reservations and to attract and retain suppliers, other business partners, management and
key employees, which in turn could adversely affect its reputation, business, and results of operations,
even if they are baseless or satisfactorily addressed. These allegations, even if unproven or meritless,
may lead to inquiries, investigations, or other legal actions against VinFast by regulatory or government
authorities as well as private parties. Any regulatory inquiries or investigations and lawsuits against
VinFast, perceptions of inappropriate business conduct by VinFast or perceived wrongdoing by any
member of VinFast’s management team, among other things, could substantially damage its reputation
and public credibility and cause it to incur significant costs to defend itself. Any negative market
perception or publicity regarding VinFast’s suppliers or other business partners that it closely cooperates
with, or any regulatory inquiries or investigations and lawsuits initiated against them, may also have an
impact on VinFast’s brand, public credibility and customer confidence in its products, or subject it to
regulatory inquiries, investigations or lawsuits. VinFast’s management may be required to dedicate
significant time and it may incur additional costs on marketing activities to respond to negative publicity
directed at VinFast and rehabilitate its brand and reputation.

Any negative media publicity about the EV industry or product or service quality problems of other
automakers in the industry in which VinFast operates, including its competitors, may also negatively
impact VinFast’s brand, public credibility and consumer confidence by association, and may also affect
the value of your investment.

VinFast’s long-term results depend upon its ability to successfully introduce and market new
products and services, which may expose VinFast to new and increased challenges and risks.

VinFast’s growth strategy depends in part on its ability to offer a competitive EV offering relative to its
peers and to continue augmenting its “technology for life” offering, increase its global reach to meet
demand, innovate its commercial approach, expand its vehicle offerings (including in response to
customer and industry feedback), enhance and refine its service offering, pursue enhanced
manufacturing automation and capacity expansion, broaden its ancillary revenue streams, pursue
organic and inorganic growth opportunities and promote and invest in its ESG initiatives. In particular,
pricing and driving range are key competitive factors in the EV industry.

As VinFast introduces new vehicles and services or refines, improves or upgrades versions of existing
vehicles and services, it cannot predict the level of market acceptance or the amount of market share
these vehicles or services will achieve, if any. VinFast has delays in its initial delivery targets and cannot
assure you that it will not experience material delays in the entry into new markets and the introduction
of new products and services in the future. VinFast offered the “City Edition” VF 8 in the U.S. on a
one-time, limited basis to commence deliveries of its VF 8 model. The “City Edition” VF 8 has a lower
range per charge than VF 8 (87.7 kWh battery) and is being offered at a $3,000 discount to the suggested
retail price of the VF 8 (87.7 kWh battery) to encourage customers who
“City Edition” instead of waiting for the VF 8 (87.7 kWh battery). VinFast commenced deliveries of
the VF 5 and VF 9 in early 2023 in Vietnam. VinFast also plans to begin delivering the VF 8 (87.7 kWh
battery), VF 6 and VF 7 in 2023, and the VF 3 in late 2024. If there are any delays in the delivery of the
new versions or models, or they do not perform as expected or otherwise are not well-received by the
market, VinFast’s prospects would be materially and adversely impacted. Consistent with VinFast’s
strategy of offering new vehicles and vehicle refinements, it expects to continue to use a substantial
amount of capital for product refinement, research and development, and sales and marketing.

If VinFast is unable to successfully implement its long-term growth strategy, its business, financial
condition, results of operations, cash flows and prospects could be adversely affected.

The automotive market is highly competitive, and VinFast may not be successful in competing in this
industry.

The automotive industry is highly competitive. VinFast competes on many factors, including pricing,
TCO, brand recognition, product quality, features (including driving range) and designs, after-sales
service and manufacturing scale and efficiency.

VinFast competes for sales with established EV manufacturers and new entrants, including established
ICE vehicle manufacturers that have entered or are seeking to enter the EV segment, earlier entrants
into the EV industry and new EV companies. Some of VinFast’s competitors may have established
market positions, well known brands and relationships with customers and suppliers. Competition for
EVs could intensify in the future, including due to increased demand and a regulatory push for
alternative fuel vehicles, continuing globalization, new market entrants into the EV space and
consolidation in the worldwide automotive industry. VinFast expects that more competitors will enter
the EV market, and these new entrants will further increase competition. Further, VinFast may
experience increased competition for components and other parts of its vehicles, which may have
limited supply.

VinFast also competes across an array of factors, any of which could affect the competitiveness of its
EV offerings, including pricing and total cost of ownership, driving range, brand recognition, product
design, quality of after-sales services and manufacturing scale and efficiency. For example, in January
2023, the EV industry experienced a series of price reductions following the announcement of price
cuts by one of the major industry players. VinFast has also decided to offer the VF 8 “City Edition” in
the U.S. at a $3,000 discount to the suggested retail price of the VF 8 (87.7 kWh battery) and has also
offered the leasing option for the VF 8 “City Edition” at a significantly discounted lease price. VinFast
monitors competitive factors on an ongoing basis and may from time to time adjusts its prices and
provides promotions due to competitive factors beyond its control, such as industry trends and pricing
pressure, could adversely affect its margins and profitability.

Competition in automotive industry could further intensify in the future in light of increased demand,
continuing globalization and consolidation in the worldwide automotive industry, among other factors.
Increased competition may lead to lower sales or further downward pricing pressure on the VF 8 or on
other models, which may adversely affect VinFast’s business, financial condition, results of operations,
cash flows and prospects.

VinFast’s markets its EVs in multiple markets that use different driving range testing standards while
its EVs are in different stages of development. In addition, the driving range and overall performance
of VinFast’s EVs will depend on many factors beyond VinFast’s control, including driving habits
and conditions. Therefore, the advertised driving range, certified driving range and actual driving
performance of VinFast’s EVs may all differ. As a result, VinFast may be subject to negative
publicity, and its business may be adversely affected even if such press is inaccurate.

EVs are required to undergo various testing and approval processes, including driving range
certification according to EPA (in the U.S.) or WLTP (in Europe) standards, before they can be sold in
a particular market. EPA testing standards typically produce a lower driving range than WLTP testing
standards. Marketing and advertising for the EV generally begins before these testing and approval
processes are complete and therefore may use internal company estimates of features such as driving
range. VinFast has or will promote its EVs using the WLTP or EPA driving range (depending on the
market and stage of development), and not necessarily both ranges, in different instances. In addition,
the estimated and certified driving ranges of VinFast’s EVs may differ. Finally, VinFast offers its EVs
in various trims that have different performance capabilities (for example, VinFast’s Plus trim vehicles
typically have luxury features than the Eco trim version of the same vehicle, but a lower driving range).
Any one or more of these factors related to driving range may attract negative media coverage that can
harm VinFast’s reputation, brand and demand for its EVs and may lead to customer dissatisfaction.

Potential investors should also take note of the section “Presentation of Financial and Other
Information,” which explains the presentation of WLTP and EPA driving range data in this proxy
statement/prospectus and the inherent limitations to consistency and comparability of that data.

VinFast may be unable to adequately control the costs associated with its operations.

VinFast has devoted significant capital to developing and growing its business, including establishing
its manufacturing factory in Vietnam, designing and developing its EV models, the VF e34 (C-
segment), VF 8 (D-segment), VF 9 (E-segment), VF 5 (A-segment), VF 6 (B-segment), VF 7 (C-
segment) and VF 3 (mini cars segment), purchasing and maintaining equipment and tooling, procuring
required parts and raw materials, building its network of sales and servicing infrastructure through its
partnerships and developing its charging infrastructure in Vietnam. VinFast expects to incur further
costs that will impact its profitability, including costs associated with developing new EV models,
upgrading existing models, procuring car components and raw materials, ramping up production at its
manufacturing facility in Hai Phong, establishing new manufacturing facilities, hiring and retaining
qualified employees to meet its growing business needs, further expanding its charging infrastructure
in Vietnam and internationally and marketing its EVs and its brand in existing and new markets and
other after-sale policies. These costs may increase due to many factors, including factors beyond
VinFast’s control, such as higher transportation costs, currency fluctuations, tariffs, inflation and
adverse economic or political conditions.

In June 2023, we announced an additional goodwill after-sales policy that provides eligible customers
with cash or service vouchers if their vehicles experience a technical issue that requires servicing. The
policy applies to VinFast customers in all markets from June 15, 2023 until further notice, and the level
of support varies across markets and based on the types of issue.

The prices for parts and raw materials may fluctuate depending on factors beyond VinFast’s control,
including market conditions, inflation, supply chain shortages and global demand for these materials.
Inflationary pressures in 2021 and 2022 increased VinFast’s commodity, freight and raw material costs
and the effects of inflation may have an adverse impact on its costs, margins and profitability in the
future. VinFast’s initiatives to alleviate inflationary pressures may not be successful or sufficient.

In addition, VinFast has been and in the future may be required to recall its EVs for performance or
safety-related issues. In October 2022, VinFast recalled approximately 700 of its VF e34 vehicles,
which it sells exclusively in Vietnam, after being informed by its airbag supplier that certain side impact
sensors for the airbags could malfunction. As of June 30, 2023, VinFast has completed servicing on
approximately 90.0% of the recalled VF e34 vehicles. In February 2023, VinFast recalled
approximately 2,700 of its VF 8 vehicles sold to retail customers in Vietnam to repair the bolts that
connect the front brake caliper to the steering knuckle in the recalled vehicles, and performed the same
repair on other VF 8 vehicles in its inventory. As of June 30, 2023, VinFast has completed servicing on
approximately 96.0% of the recalled VF 8 vehicles in Vietnam. In May 2023, VinFast recalled 999 of
its VF 8 vehicles in the U.S. to install a software update for the vehicle’s multimedia display screen
after VinFast’s routine performance monitoring identified that the display intermittently appeared blank
during operation. As of June 30, 2023, VinFast has completed servicing on approximately 30.2% of the
recalled VF 8 vehicles in the U.S.

Any future recalls such as these will require VinFast to incur additional costs and, if significant, could
have a material adverse effect on its results of operations, financial condition and cash flows.
Furthermore, there can be no assurance that VinFast will be willing or able to recover any increased
costs by increasing the prices of its EVs. Future increases in the cost of shipping, parts or raw materials
could increase VinFast’s costs and lower its margins. If VinFast is unable to design, develop,
manufacture, market, sell, and service its vehicles and provide services in a cost-efficient manner, its
margins, profitability, and prospects would be materially and adversely affected.
VinFast’s historical results of operations are not, and its past growth may not, be indicative of its
future performance or prospects.

This proxy statement/prospectus includes financial information as of December 31, 2021 and 2022 for
the years then ended and as of March 31, 2023 and for the three months ended March 31, 2022 and
2023 derived from the consolidated financial statements of VinFast Auto Pte. Ltd.

VinFast operated primarily as an ICE vehicle manufacturer prior to 2022. In January 2022, VinFast
announced its strategic decision to cease ICE vehicle production to transform into a pure-play
manufacturer of EVs. In early November 2022, VinFast fully phased-out production of ICE vehicles
and completed the ICE Assets Disposal to its shareholder, VIG. In 2022, while gradually phasing out
VinFast’s legacy ICE vehicle manufacturing operations, it also invested in R&D for new EV models
and ramped up production of its EVs, leading to its initial deliveries of the VF e34 and VF 8 in Vietnam.
During the year, VinFast also grew its footprint outside of Vietnam by opening reservations for the VF
8 and VF 9 in North America and Europe and making its initial shipment of the VF 8 “City Edition” to
the U.S. in December 2022. In early 2023, VinFast commenced delivery of the VF 5 and VF 9 in
Vietnam and the VF 8 “City Edition” in the U.S. In April 2023, VinFast dispatched a shipment of
approximately 1,900 VF 8 (87.7 kWh battery) and plans to deliver the VF 8 vehicles from this shipment
to North American customers in the second half of 2023. Deliveries in Europe are expected to begin in
the second half of 2023. For these reasons, VinFast believe that its results of operations during the
periods presented in this proxy statement/prospectus are not comparable. Moreover, the historical
financial information included in this proxy statement/prospectus may not be indicative of VinFast’s
future performance or prospects. VinFast has experienced rapid growth of its business in the past as an
ICE vehicle manufacturer with operations focused on its home market of Vietnam where its parent
company’s Vingroup brand is well recognized, VinFast offer a range of marketing initiatives and
promotions and VinFast believe domestically produced vehicles have certain competitive advantages.
There can be no assurance that VinFast will be able to achieve similar rapid growth of its business in
its international markets where the business, regulatory and consumer landscapes may differ
significantly from Vietnam. As such, VinFast’s past growth and historical financial results of operations
may not be indicative of its future performance or prospects.

VinFast is dependent, directly and indirectly, on suppliers for component parts and raw materials.
Suppliers may fail to deliver components and raw materials according to VinFast’s schedule and at
prices, quality and volumes acceptable to it.

VinFast depends on third-party suppliers for key components in its vehicles, including battery packs,
axles, chassis, seats, semiconductor chips, interior parts, and steering columns. VinFast also procures
raw materials required to manufacture and assemble its vehicles, such as steel, aluminum and resin.
Raw materials such as these are also used by VinFast’s battery cell suppliers. Raw materials may be
subject to price fluctuations due to various factors beyond VinFast’s control, including market
conditions and global demand for these materials, which may directly or indirectly, have an adverse
impact on its operating costs and profit margins. The supply chain exposes VinFast to multiple potential
sources of delivery failure or component shortages.

If suppliers become unable to provide, or experience delays in providing components and raw materials,
VinFast’s business could be disrupted, including VinFast’s ability to meet its targeted schedules for
vehicle deliveries and the rollout of new features. If existing supply agreements are terminated or
renewed on less favorable terms, VinFast may face difficulty or delays in finding replacement suppliers
able to provide components or other supplies of comparable quality. Any such alternative suppliers may
be located a long distance from VinFast’s manufacturing facilities, which may lead to increased costs
or delays, or the terms of such new agreements may be made on less favorable terms. If VinFast’s
manufacturers or suppliers become unwilling or unable to provide an adequate supply of semiconductor
chips, with respect to which there has been a global shortage, VinFast would not be able to find
alternative sources in a timely manner and its business would be adversely impacted.

VinFast sources the battery cells and battery packs in its EVs from third party suppliers. Driving range
is a key competitive factor in the EV industry, and VinFast’s success depends in part on its ability to
continue to deliver efficient EVs as it develops future EV offerings. VinFast’s success depends, in turn,
on the ability of its battery partners to deliver high-quality and high-capacity battery components that
will allow VinFast to provide a competitive EV offering in terms of driving range and to do so in
quantities that meet VinFast’s requirements as it grows.

VinFast’s battery suppliers include its affiliate, VinES, which is a key battery pack supplier to VinFast
and is in the process of developing battery cell production capabilities in Vietnam. While VinFast has
not experienced a material disruption in the manufacture of its vehicles due to any shortages in the
supply of battery cells, it cannot assure you that it will be able to continue to obtain a sufficient number
of battery cells, components or battery packs at a reasonable cost to support its operations. VinFast
cannot assure you that VinES, a recently established EV battery supplier, and other third-party suppliers
will be able to meet VinFast’s battery cell and battery pack requirements in the manner that VinFast
expects. Furthermore, as VinFast seeks to increase its production capacity in the future, the impacts of
global supply constraints, if they continue, may be magnified in the future.

Changes in business or macroeconomic conditions, governmental regulations and other factors beyond
VinFast’s control or that it does not presently anticipate could affect its ability to receive components
from suppliers. Such events could pose challenges or delays to the construction of, and ramp up at, new
facilities, such
as VinFast’s planned manufacturing facility in North Carolina, by adversely impacting the availability
or costs of raw materials and components used in the construction of such facilities or production of its
vehicles. Under VinFast’s supply agreements, it has in the past, and could again in the future, be subject
to penalties and price adjustments as a result of any volume shortfalls in its orders.

Concerns over inflation, geopolitical issues, global financial markets and the COVID-19 pandemic have
led to increased economic instability and expectations of slower global economic growth. For example,
following Russian military actions related to Ukraine in February 2022, commodity prices, including
the price of oil, gas, nickel, copper and aluminum, have increased. Such disruptions to the global
economy, together with inflationary pressures, has at times disrupted, and in the future may disrupt, the
global supply chain and affect VinFast’s ability to secure (or the cost of securing) components, raw
materials or other supplier. In the past, global supply chain disruption has in turn adversely impacted
the delivery schedule for its vehicles. An increase in raw material costs may require VinFast to increase
its product prices, which could adversely impact its price competitiveness. In 2022, as the pandemic-
related economic instability eased, the U.S. Federal Reserve started tapering its quantitative easing
monetary policies in response to elevated inflation levels (from high food and energy prices and broader
pressures) and supply and demand imbalances. The U.S. Federal Reserve raised the benchmark federal-
funds rate from near-zero in March 2022 to 5% to 5.25% in May 2023 and it is possible that the U.S.
Federal Reserve will continue to increase the funds rate. The financial conditions of banking institutions
have come under severe pressure and deterioration, as exemplified by the proposed restructuring of
several banks in the first half of 2023, driven by bank runs or simultaneous withdrawals by depositors
due to various reasons, including lack of confidence in the banking system. These developments may
adversely impact global liquidity, heighten market volatility and increase U.S. dollar funding costs
resulting in tightened global financial conditions and fears of a recession. A prolonged period of
extremely volatile and unstable market conditions would likely increase our funding costs and
negatively affect market risk mitigation strategies.

Suppliers may experience disruptions in their operations, including due to equipment breakdowns, labor
strikes or shortages, shipping container shortages, financial difficulties, natural disasters, component or
material shortages, cost increases, acquisitions, changes in legal or regulatory requirements, or other
similar problems. The unavailability of any component or supplier could, if not covered by contingency
supplier plans, result in delays in production, deliveries and rollouts of new EV models and new
features, idle manufacturing facilities, product design changes and loss of access to important
technology and tools for producing and supporting VinFast’s products and services. A portion of
VinFast’s parts and components are obtained through short- and medium-term orders rather than long-
term supply agreements. This may expose VinFast to fluctuations in prices of components, materials
and equipment.

Semiconductor chips are a vital input component to the electrical architecture of VinFast’s EVs. There
has been a global shortage of semiconductor chips since 2020, due in part to the COVID-19 pandemic
and increased demand for consumer electronics that use these chips. Although VinFast has sought to
manage the impact of the shortage through proactive inventory management and close collaboration
with its suppliers, the shortage has resulted in increased chip delivery lead times and increased costs to
source available semiconductor chips, which has led to delays in its production. To the extent this
semiconductor chip shortage continues, and VinFast is unable to mitigate the effects of this shortage, it
may incur higher production costs and its ability to deliver its vehicles on schedule and in sufficient
quantities to fulfill customer reservations and to support its growth through sales to new customers
would be adversely affected. In addition, VinFast may be required to incur additional costs and expenses
in managing ongoing chip shortages, including additional research and development expenses,
engineering design and development costs in the event that new suppliers must be onboarded on an
expedited basis. Further, ongoing delays in production and shipment of vehicles due to a continuing
shortage of semiconductor chips may harm VinFast’s reputation and discourage additional reservations
and vehicle sales, and otherwise materially and adversely affect its business and operations. Other
shortages may occur in the future and the availability and cost of the affected components may be
difficult to predict.

Cyber-attacks and malicious internet-based activity directed at supply chains have increased in
frequency and severity, and VinFast cannot guarantee that third parties and infrastructure in its supply
chain or its third-party partners’ supply chains have not been compromised or that they do not contain
exploitable defects or bugs that could result in a breach of or disruption to its information technology
systems or the third-party information technology systems that support it and its services. Ransomware
attacks, including by organized criminal threat actors, nation-states, and nation-state-supported actors,
are becoming increasingly prevalent and severe and can lead to significant interruptions in its
operations, loss of data, and income, reputational harm, and diversion of funds. While VinFast conducts
risk assessments and gap analyses and have implemented monitoring and defense solutions for its
networks, devices applications, data, system processes and users and designed its EVs to comply with
cyber-security standards in the relevant target markets and to offer in-vehicle solutions to protect them
from and respond to risks in real time, there can be no assurance that any mitigation measures that it
has taken or will take will be successful in preventing or minimizing the consequences of cyber-attacks
or similar incidents.
VinFast’s success will be dependent upon its ability to maintain relationships with existing suppliers
who are critical and necessary to the output and production of its vehicles and to create relationships
with new suppliers.

VinFast’s success will be dependent upon its ability to maintain its relationships with existing suppliers
and enter into new supplier agreements. VinFast relies on suppliers to provide key components and
technology for its vehicles. Supplier agreements that VinFast has, and may enter into with key suppliers
in the future, may have provisions where such agreements can be terminated in various circumstances,
including potentially without cause. In addition, if VinFast’s suppliers experience substantial financial
difficulties, cease operations, or otherwise face business disruptions, VinFast would be required to take
measures to ensure components and materials remain available. Any supply chain disruption could
affect VinFast’s ability to deliver vehicles and could increase VinFast’s costs and negatively affect
VinFast’s liquidity and financial performance.

The process of establishing manufacturing facilities outside of Vietnam, and expanding VinFast’s
capacity within Vietnam, may be subject to delays or cost overruns, may not produce expected benefits
or may cause it to not meet its projections for future production capacity.

VinFast is planning to establish manufacturing facilities outside of Vietnam and have identified the U.S.
for its initial international expansion. In addition, VinFast plans to expand its capacity at its Hai Phong
facility. VinFast’s ability to meet delivery timelines could be impacted, which would impact its sales
volume and could impact its reputation. Construction and expansion of EV manufacturing facilities
involve significant risks and capital. Unforeseen events could lead VinFast to adjust its plans and impact
its projected production capacity. VinFast could experience construction delays or other difficulties
beyond its ability to control or predict. Any failure to complete these capital-intensive projects on
schedule and within budget could adversely impact VinFast’s business, financial condition, results of
operations, cash flows and prospects. Construction projects are subject to supervision and approval
procedures, including but not limited to project approvals and filings, construction land and project
planning approvals, environment protection approvals, pollution and hazardous waste discharge
permits, work safety approvals, fire protection approvals and the completion of inspection, acceptance
and other applicable procedures by relevant authorities. There may also be delays and foreseen costs in
obtaining the relevant licenses, permits and approvals to operate these facilities, which in turn could
impact VinFast’s business, financial condition, results of operations, cash flows and prospects.

VinFast’s reservations may not result in completed sales of its vehicles and its actual vehicle sales
and revenue generated for their sales could differ materially from the number of reservations
received.
VinFast’s reservation program for its vehicles requires customers to place a small reservation fee. Each
reservation fee is cancellable and fully refundable without penalty until the customer enters into a sale
and purchase agreement for the vehicle they select. VinFast has experienced cancelations in the past,
and it is possible that a significant number of customers who reserved its vehicles, including corporate
customers and third party dealers with multi-vehicle orders as well as customers that have reserved
multiple EVs, may not ultimately complete their purchases for any reason, including due to reasons and
factors which may be outside of

VinFast’s control, such as rising inflation, deterioration of economic conditions in its end markets, and
the availability and cost of consumer credit. VinFast does not typically verify the identity of customers
making reservations. Customers who have made reservations may have made reservations for multiple
vehicles while deciding which vehicle to ultimately purchase and may continue to evaluate the
attractiveness of vehicle pricing and other factors, in each case up until the time they are given the
opportunity to place orders. The wait time from the time a reservation is made until the time the vehicle
is delivered, and any delays beyond expected wait times, could impact consumer decisions on whether
to ultimately make a purchase and result in customer dissatisfaction. From time to time, VinFast has
experienced delayed vehicle deliveries which have resulted in customer dissatisfaction, and there can
be no assurance that this will not happen again in the future. As VinFast recognizes revenue upon the
sale of a vehicle at the time the vehicle is delivered to the customer, its reservation numbers may not be
indicative of its future revenue generations and prospects. Furthermore, a portion of its reservations
represent reservations made by Vingroup employees who receive discounts on interest payments with
respect to vehicle financing as employees of Vingroup-affiliated companies. As a result, VinFast’s
historical pace of attracting reservations may not be indicative of its pace of attracting reservations in
the future.

VinFast’s future growth is dependent on the demand for, and upon consumers’ willingness to adopt
EVs, which may be affected by various factors, including developments in EV or alternative fuel
technology.

VinFast’s future growth is dependent on the demand for, and upon consumers’ willingness to adopt
EVs. Demand for EVs may be affected by many factors, such as factors directly impacting EV prices
or the cost of purchasing and operating EVs such as sales and financing incentives, prices of raw
materials and parts and components, cost of petroleum and governmental regulations, including tariffs,
import regulations, evolving technical regulations and standards, and other taxes. Concerns over global
economic conditions, stock market volatility, energy costs, geopolitical issues, inflation and central
banks’ decisions to increase interest rate increases in response, the availability and cost of credit, and
slowing of economic growth and forecasts of a recession in VinFast’s target markets and the global
economy may dampen demand for EVs. Demand for EVs may also be adversely affected by increases
in demand for ICE vehicles relative to demand for EVs, which in turn may be driven by many factors.
Volatility in EV demand may lead to lower vehicle unit sales, which may result in downward price
pressure and adversely affect VinFast’s business, prospects, financial condition, results of operations,
and cash flows.

The market for EVs is still evolving, characterized by changing EV and alternative fuel technologies, a
competitive pricing environment, evolving government regulations and industry standards, and
changing consumer demands and behaviors. VinFast may be unable to keep up with changes in EV
technology or alternatives to battery-generated electricity as a fuel source and, as a result, its
competitiveness may suffer. Developments in alternative fuel technologies, such as hydrogen, ethanol,
fuel cells, or compressed natural gas, may materially and adversely affect VinFast’s business and
prospects in ways it does not currently anticipate. Existing and other battery cell technologies, fuels or
sources of energy may emerge as consumer’s preferred alternative to VinFast’s vehicles. As
technologies change, VinFast will need to source and integrate the latest technology into its vehicles.
The introduction and integration of new technologies into VinFast’s vehicles may increase its costs and
capital expenditures required for the production and manufacture of its vehicles. Any failure by VinFast
to cost efficiently implement new technologies or adjust its manufacturing operations could adversely
affect its business, prospects, financial condition, results of operations, and cash flows.

If there is inadequate access to EV charging stations or related infrastructure, VinFast’s business

may be materially and adversely affected.

Demand for VinFast’s vehicles will depend in part upon the availability and quality of VinFast’s
charging infrastructure. In Vietnam, VinFast faces risks associated with owning and operating its EV
charging station network and must ensure that its network reach and infrastructure is sufficient to meet
its customers’ needs. Outside of Vietnam, VinFast markets its VinFast Power Solutions program and
its ability to provide its customers with stress-free charging services, including access to a network of
charging stations through strategic
partnerships. In the U.S., VinFast relies on its partners, Electrify America and EVgo, to provide its U.S.
customers with charging solutions at their networks of EV charging stations.

While the prevalence of charging stations generally has been increasing, charging station locations are
currently less widespread than gas stations in all of VinFast’s target markets. The lack of more
widespread charging infrastructure could lead to potential customers choosing not to purchase VinFast’s
EVs. Although VinFast intends to establish far-reaching charging networks in its target markets,
VinFast and its charging solutions partners may be unable to expand their charging networks as fast as
they intend or as the public desires, or to place the charging stations in places VinFast’s customers
believe to be optimal. There can be no assurance that VinFast’s partners will continue to work with
VinFast on terms acceptable to VinFast’s, or at all. To the extent VinFast or its charging solutions
partners are unable to meet customer expectations or experience difficulties in providing charging
solutions, VinFast’s reputation and business may be materially and adversely affected. If VinFast is
unable to meet user expectations or experience difficulties in providing its charging solutions, its
business, financial condition, results of operations, cash flows and prospects may be materially and
adversely affected.

The unavailability, reduction or elimination of government and economic incentives or government

policies which are favorable for EV manufacturers and buyers could have a material adverse effect
on VinFast’s business, financial condition, results of operations, cash flows and prospects.

Any reduction, elimination, alteration, ineligibility, unavailability or discriminatory application of

government subsidies, favorable trade policies and free trade agreements and economic incentives that
VinFast currently or expects to receive may result in the diminished competitiveness of the alternative
fuel and electric vehicle industry generally or VinFast’s vehicles. In particular, VinFast benefit from
favorable tax concessions in Vietnam and the U.S. For example, in Vietnam, VinFast is entitled to
corporate income tax incentives for investment projects in certain economic zones under Vietnam’s
Law on Investment and the Law on Corporate Income Taxes (and its implementing regulation). As a
result of such tax incentives, for the years ended December 31, 2021 and 2022 and the three months
ended March 31, 2023, VinFast Vietnam was entitled to a preferential tax rate of 10% and CIT
exemption, resulting in an effective tax rate of 0%. These income tax incentives will be phased out
gradually over the years until 2033. The phase-out and expiry of the corporate income tax incentives
may adversely affect VinFast’s results of operations. Conversely, applicable laws may impose
additional barriers to electric vehicle adoption, including additional costs and adversely affect the
growth of the alternative fuel automotive markets and VinFast’s business, financial condition, results
of operations, cash flows and prospects. Incentives may also be put in place which benefit alternative
technologies, which could adversely impact demand for EVs.

In certain markets, customers may also benefit from government incentives for the purchase of electric
vehicles in the form of rebates, tax credits and other financial incentives. These governmental rebates,
tax credits and other financial incentives may lower customer purchase costs or provide savings in
connection with the purchase of EVs or use of EV infrastructure. For example, the IRA provides tax
credits in connection with the purchase of certain EVs through 2032. However, in order for the purchase
of an EV to qualify for such credits, the EV must satisfy certain requirements, including, among others,
that a specified percentage of the value of the battery components in the EV be manufactured or
assembled in the U.S., the final assembly of the vehicle be conducted in the U.S., the retail price of the
vehicle not exceed a specified threshold which varies by vehicle type and eligible taxpayers must have
incomes below certain thresholds. In 2022, VinFast entered into a series of agreements with North
Carolina state and local authorities to build a manufacturing facility spanning across a site measuring
approximately 733 hectares in North Carolina. Commissioning of the facility is targeted for 2025. Once
this facility commences operations and final assembly of VinFast’s EVs, VinFast’s customers in the
U.S. may be able to be entitled to this tax credit, subject to, among other things, their income eligibility
as well as VinFast’s ability to meet requirements on battery components and critical minerals. VinFast
is monitoring the issuance of the detailed guidance on these requirements by the Internal Revenue
Service (“IRS”) and will be evaluating the guidance’s implications on its supply chain ecosystem in
order to satisfy such requirements. If purchases of VinFast’s EVs are not able to qualify for tax credits
under the IRA, demand for its EVs may decrease. There is uncertainty as to the expected benefit or
impact from the IRA due to the IRA’s eligibility criteria related to consumer income, battery
components and critical minerals. In addition, under the IRA, qualifying used EVs will also be eligible
for a tax credit, which could cut into the sales of new EVs. Further, to the extent VinFast’s vehicles now
or in the future benefit from incentives, incentives may take time to be disbursed and may not impact
customer purchase decisions as expected. Incentives may also expire on specified dates, end when the
allocated funding is no longer available, or be reduced or terminated as a matter of regulatory or
legislative policy. There is no guarantee that the rebates, tax credits or other financial incentives for
alternative energy production, alternative fuel, and EVs which have been made available will be
available in the future. If current tax incentives are not available in the future, demand for EVs may
stagnate or decline, which could adversely affect VinFast’s business, financial condition, results of
operations, cash flows and prospects.

VinFast’s vehicles currently make use of lithium-ion battery cells; lithium-ion battery cells have been
observed to catch fire or vent smoke and flame.

The battery packs in VinFast’s EVs make use of lithium-ion cells. On rare occasions, lithium-ion cells
have been reported to vent smoke and flames in a manner that can ignite nearby materials. If the battery
packs in VinFast’s EVs experience failure, it could subject VinFast to lawsuits, product recalls, or
redesign efforts, all of which would be time consuming and expensive. In addition, negative public
perceptions regarding the suitability of lithium-ion cells for automotive use or any future incident
involving lithium-ion cells such as a vehicle or other fire, even if not involving VinFast’s vehicles,
could seriously harm its business. In addition, VinFast stores lithium-ion cells at its EV manufacturing
facilities, which could prove hazardous if not stored and handled properly, resulting in damages, injuries
or adverse publicity. Moreover, any failure of a competitor’s electric vehicle or energy storage products
may indirectly cause indirect adverse publicity for VinFast’s industry as a whole, VinFast and its
products. Such adverse publicity could negatively affect VinFast’s brand and harm its business,
financial condition, results of operations, cash flows and prospects.
VinFast may experience issues with the recycling of its lithium-ion cells and battery modules, which
may harm its business and reputation.

VinFast’s business requires it to dispose of battery components used in the production of its EVs.
VinFast’s ability to appropriately and efficiently handle the recycling of its lithium-ion cells and battery
modules will depend on VinFast’s and its partners’ ability to develop and put in place efficient and low-
cost recycling capabilities and processes that meet future recycling needs.

VinFast’s research and development efforts may not yield expected results.

Technological innovation is critical to VinFast’s success. VinFast has developed some of its
technologies in-house, and it also collaborates with third-party business partners, including its affiliates
in the Vingroup technology ecosystem, for the design and continued development of its EV offerings.
VinFast has invested in its research and development efforts and expect to continue doing so in the
future. Research and development activities are inherently uncertain, and there can be no assurance that
VinFast will continue to achieve technological breakthroughs and successfully commercialize such
breakthroughs. A delay in the development or regulatory approval (if applicable) of technologies for
VinFast’s new EV models could delay its expected timelines to bring new vehicles to market or to
provide upgrades to existing models or generally fail to meet customer demand, which would in turn
damage its brand and reputation, adversely affect its business, financial condition, results of operations,
cash flows and prospects and cause liquidity constraints.

VinFast’s vehicles rely on software and hardware that is highly technical, and if these systems
contain errors, bugs, vulnerabilities, or design defects, or if VinFast is unsuccessful in addressing or
mitigating technical limitations in its systems, or if it is unable to coordinate with vendor and
suppliers in a timely and effective manner, its business could be adversely affected.

VinFast’s vehicles rely on software and hardware that is highly technical and complex and may require
modification and updates over the life of the vehicles. In addition, VinFast’s vehicles depend on the
ability of such software and hardware to store, retrieve, process and manage data. VinFast’s software
and hardware may contain errors, bugs, vulnerabilities or design defects, and its systems are subject to
certain technical limitations that may compromise its ability to meet its objectives. For example, in May
2023, VinFast recalled 999 of its VF 8 vehicles in the U.S. to install a software update for the vehicle’s
multimedia display screen after VinFast’s routine performance monitoring identified that the display
intermittently appeared blank during operation. Some errors, bugs, vulnerabilities, or design defects
inherently may be difficult to detect and may only be discovered after the code has been released for
external or internal use. Although VinFast will attempt to remedy any issues it observes in its vehicles
effectively and rapidly, such efforts may not be timely, may hamper production or may not be to the
satisfaction of its customers.

Additionally, VinFast expects to periodically deploy updates to the software (whether to address issues,
deliver new features or make desired modifications). If VinFast’s OTA update procedures fail to
properly update the software or otherwise have unintended consequences to the software, the software
within its customers’ vehicles will be subject to vulnerabilities or unintended consequences resulting
from such failure of the OTA update until properly addressed. If those remote updates fail, cause
malfunctions, do not function as anticipated or have unintended consequences, the functionality of
VinFast’s customers’ EVs and the safety of users of the vehicle could become compromised. Such OTA
updates must also comply with applicable regulations and standards.

In the design, development and production of VinFast’s vehicles, it utilizes third-party software and
complex technological hardware, some of which are licensed to it pursuant to licensing agreements and
others which it has acquired from experienced business partners through technology transfer
transactions. The development and implementation of such technologies in VinFast’s EVs is inherently
complex and requires that it coordinates with its business partners, vendors and suppliers to integrate
such technology into its EVs and ensure the interoperability of the various parts. If VinFast is unable to
develop the software and technology systems necessary to operate its vehicles, its competitive position
could be harmed. VinFast may also fail to detect defects and errors that are subsequently revealed, and
its control over the performance of third-party services and systems may be limited.

The occurrence of software or hardware issues or other difficulties involving VinFast’s technology or
other systems can adversely impact the customer experience and result in customer dissatisfaction with
its vehicles. If VinFast is unable, particularly as a new entrant to the EV industry, to prevent or
effectively remedy errors, bugs, vulnerabilities or defects in its software and hardware, or fail to deploy
updates to its software properly or otherwise achieve customer satisfaction, it would suffer damage to
its reputation, loss of customers, loss of revenue or liability for damages, any of which could adversely
affect its business, prospects, financial condition, results of operations, and cash flows.

VinFast’s warranty reserves may be insufficient to cover future warranty claims, which could
adversely affect its business, financial condition, results of operations, cash flows and prospects.

VinFast provides a manufacturer’s warranty on all new vehicles at the time of sale as well as a warranty
on batteries in its EVs. In addition, notwithstanding the sale of the ICE Assets to VIG, the liabilities
continue to rest with VinFast. Pursuant to the warranties associated with the ICE vehicles, VinFast is
responsible for servicing the ICE vehicles and handling the warranty claims over the life of the warranty.
VinFast has extended the warranty policy for all ICE vehicles sold and to be sold (which are ICE
vehicles that VinFast produced prior to ceasing its ICE manufacturing operations and are scheduled to
be delivered) to the earlier of 10 years or the first 200,000 kilometers. VinFast also offers a warranty
for battery of 10 years, together with its battery subscription program for the duration of the battery
lease, which may be longer than the warranty period under its outright sale model. VinFast’s battery
subscription program will provide for replacement or repair in case the battery capacity falls under 70%
for the duration of the battery lease.

VinFast maintains a warranty reserve for these obligations. The amount of the warranty reserve
represents VinFast’s best estimate of the projected costs to repair or replace items under warranties, as
well as the nature and frequency of future claims. VinFast cannot assure you that the warranty reserves
that it maintains will be sufficient to fully cover claims that may arise. In addition, given the durations
of VinFast’s vehicle manufacturer’s warranty offering of up to 10-year / 125,000-mile and battery
warranty under the battery subscription program, it may encounter unforeseen or higher costs. VinFast
could, in the future, become subject to significant and unexpected warranty claims, resulting in
significant expenses, which would in turn materially and adversely affect its business, financial
condition, results of operations, cash flows and prospects.

If VinFast’s vehicle owners customize its vehicles with aftermarket products, or attempt to modify its
vehicles’ charging systems, the vehicles may not operate properly, which may create negative
publicity and could harm VinFast’s brand and business.

Automotive enthusiasts may seek to alter VinFast’s vehicles to modify their performance which could
compromise vehicle safety and security systems. Also, customers may customize their vehicles with
aftermarket parts that can compromise driver safety. VinFast does not test, nor does it endorses, such
changes or products. In addition, customers may attempt to modify VinFast’s vehicles’ charging
systems or use improper external cabling or unsafe charging outlets that can compromise the vehicle
systems or expose VinFast’s customers to injury from high voltage electricity. Such unauthorized
modifications could reduce the safety and security of VinFast’s vehicles and any injuries resulting from
such modifications could result in adverse publicity, which may negatively affect VinFast’s brand and
thus harm its business, financial condition, results of operations, cash flows and prospects.

VinFast may be subject to risks associated with autonomous driving technologies.

VinFast vehicles are being designed with connectivity for an autonomous hardware suite and will offer
some autonomous functionality, such as lane change and remote parking. Autonomous driving
technologies are subject to risks and there have been accidents and fatalities associated with such
technologies. The safety of such technologies depends in part on driver interactions, and drivers may
not be accustomed to using or adapting to such technologies. To the extent accidents associated with its
autonomous driving systems occur, VinFast could be subject to liability, negative publicity, government
scrutiny, and further regulation. Moreover, any incidents related to autonomous driving systems of
VinFast’s competitors could adversely affect the perceived safety and adoption of VinFast’s vehicles
and autonomous driving technology more broadly. Any of the foregoing could materially and adversely
affect VinFast’s business, prospects, financial condition, results of operations, and cash flows.

Autonomous driving technology is also subject to considerable regulatory uncertainty as the law evolves
to catch up with the rapidly evolving nature of the technology itself, all of which are beyond VinFast’s
control. VinFast’s vehicles also may not achieve the requisite level of autonomy required for
certification and rollout to consumers or satisfy changing regulatory requirements which would require
it to redesign, modify or update its autonomous hardware and related software systems.

VinFast’s business depends on the continued efforts of its people and its ability to recruit new talent
and its operations may be disrupted if it loses their services.

VinFast’s success depends on the continued efforts of its people, including its key management and
employees with expertise in various areas. VinFast had turnover in some of its key management and
other personnel in the past, including certain senior executives in 2021 and 2022. In addition, VinFast
consolidated its North America operations in February 2023, which resulted in turnover in country-
level management and other personnel. If VinFast’s personnel are unable or unwilling to continue their
services with it, it might not be able to replace such personnel in a timely manner or without incurring
additional costs or it might not be able to find replacements with appropriate experience. The
automotive industry is characterized by high demand and intense competition for talent, and as VinFast
builds its brand and become more well-known outside of Vietnam, the risk that competitors or other
companies may seek to hire its talent could increase. In addition, VinFast may need to expend
significant time and expense to train new employees that it is required to hire.

VinFast may be compelled to undertake product recalls or other actions, which could adversely affect
its reputation and brand, and its business, financial condition, results of operations, cash flows and
prospects.

VinFast may be subject to adverse publicity, damage to its brand, and costs for recalls of its vehicles.
In October 2022, VinFast recalled approximately 700 of its VF e34 vehicles, which it sells exclusively
in Vietnam, after being informed by its airbag supplier that certain side impact sensors for the airbags
could malfunction. The recall procedure entails the replacement of the airbag’s side impact sensor and
reconfiguration of the airbag control module. As of June 30, 2023, VinFast has completed servicing on
approximately 90.0% of the recalled VF e 34 vehicles. VinFast expects that the costs related to the
recall will be borne by the supplier, including the costs of work performed at its service shops in
Vietnam. In February 2023, VinFast has recalled approximately 3,800 of its VF 8 vehicles sold to retail
customers in Vietnam to repair the bolts that connect the front brake caliper to the steering knuckle in
the recalled vehicles, and performed the same repair on other VF 8 vehicles in its inventory. As of June
30, 2023, VinFast have completed servicing on approximately 96.0% of the recalled VF 8 vehicles in
Vietnam. In May 2023, VinFast recalled 999 of its VF 8 vehicles in the U.S. to install a software update
for the vehicle’s multimedia display screen after VinFast’s routine performance monitoring identified
that the display intermittently appeared blank during operation. As of June 30, 2023, VinFast has
completed servicing on approximately 30.2% of the recalled VF 8 vehicles in the U.S.

Although VinFast does not believe its results of operations have been directly materially affected by
these recalls, it cannot assure that these recalls will not lead to other adverse consequences or
reputational harm. In the future, VinFast may at various times, voluntarily or involuntarily, initiate a
recall if any of its vehicles, including any systems or parts sourced from its suppliers, prove to be
defective or non-compliant with applicable laws and regulations. Such recalls, whether voluntary or
involuntary, could involve significant expense and couldadversely affect its brand image in its target
markets, as well as its business, financial condition, results of operations, cash flows and prospects.

Pandemics and epidemics, natural disasters, terrorist activities, political unrest and other geopolitical
risks could disrupt VinFast’s production, delivery, and operations, which could materially and
adversely affect its business, financial condition, results of operations, cash flows and prospects.

Global pandemics, epidemics, or fear of spread of contagious diseases, as well as hurricanes,

earthquakes, tsunamis, or other natural disasters could disrupt VinFast’s business operations, reduce or
restrict its supply of materials and services, incur significant costs to protect its employees and facilities,
or result in regional or global economic distress, which may materially and adversely affect its business,
financial condition, results of operations, cash flows and prospects. Actual or threatened war, terrorist
activities, political unrest, civil strife, and other geopolitical risks could have a similar adverse effect on
VinFast’s business, financial condition, results of operations, cash flows and prospects. Any one or
more of these events may impede VinFast’s production and delivery efforts and adversely affect its
sales results, or even for a prolonged period of time, which could materially and adversely affect its
business, financial condition, results of operations, cash flows and prospects.

In February 2022, Russian military forces launched a military action in Ukraine. The ongoing military
action between Russia and Ukraine, sanctions and other measures imposed against Russia, Belarus, the
Crimea Region of Ukraine, the so-called Donetsk People’s Republic and the so-called Luhansk People’s
Republic by the U.S. and other countries and bodies around the world, as well as the existing and
potential further responses from Russia or other countries to such sanctions, tensions and military
actions, has in the past and in the future could continue to adversely affect the global economy and
financial markets and could adversely affect VinFast’s business, financial condition and results of
operations. Additional potential sanctions and penalties have also been proposed and/or threatened.
Although VinFast’s operations have not experienced material and adverse impact on supply chain,
cybersecurity or other aspects of its business from the ongoing conflict between Russia and Ukraine,
during times of war and other major conflicts, VinFast and the third parties upon which it relies may be
vulnerable to a heightened risk of these attacks, including retaliatory cyber-attacks, that could materially
disrupt VinFast’s systems and operations, supply chain, and ability to produce, sell and distribute its
goods and services. VinFast cannot predict the progress or outcome of the conflict in Ukraine or its
impacts in Ukraine, Russia or Belarus as the conflict, and any resulting government reactions, are
rapidly developing and beyond its control. The extent and duration of the military action, sanctions and
resulting market disruptions could be significant, could result in increases in commodity, freight,
logistics and input costs and could potentially have substantial impact on the global economy and
VinFast’s business for an unknown period of time.

In August 2022, Nancy Pelosi, the former Speaker of the U.S. House of Representatives, visited Taiwan
despite comments in opposition of the visit from the People’s Republic of China (“PRC”) government.
The PRC government subsequently conducted military exercises in the region and imposed a ban on
certain exports and imports with Taiwan. Against this backdrop, VinFast cannot assure you that future
developments in the relationship between mainland China and Taiwan will not adversely affect its
supply chain, its industry and the global economy and its business, financial condition and results of
operations.

VinFast’s servers and data are located in data centers that have implemented data protection and disaster
recovery measures and protocols, backup systems and redundancies. Nevertheless, fires, earthquakes,
floods, typhoons, power loss, telecommunication failures, break-ins, riots, terrorist attacks or other
similar events at the sites of VinFast’s service providers may still cause damage or interruption to its
systems and operations. Any of the foregoing events may give rise to interruptions, damage to VinFast’s
property, delays in production, breakdowns, system failures, technology platform failures, or internet
failures, which could cause the loss or corruption of data or malfunctions of software or hardware as
well as adversely affect its business, financial condition, results of operations, cash flows and prospects.

Research and development activities

VinFast is investing strongly in research activities to develop smart, self-driving electric vehicle
products and services and smart energy solutions. This effort aims to make VinFast the world's leading
smart mobile technology company, affirming its position in the international market.
Write for [CT5] Business strategies and plansTechnological innovation is critical to VinFast’s success.
VinFast has developed some of its technologies in-house, and it also collaborates with third-party
business partners, including its affiliates in the Vingroup technology ecosystem, for the design and
continued development of its EV offerings. VinFast has invested in its research and development efforts
and expect to continue doing so in the future. Research and development activities are inherently
uncertain, and there can be no assurance that VinFast will continue to achieve technological
breakthroughs and successfully commercialize such breakthroughs. A delay in the development or
regulatory approval (if applicable) of technologies for VinFast’s new EV models could delay its
expected timelines to bring new vehicles to market or to provide upgrades to existing models or
generally fail to meet customer demand, which would in turn damage its brand and reputation, adversely
affect its business, financial condition, results of operations, cash flows and prospects and cause
liquidity constraints.
VinFast also entered into a framework research and development agreement with Vingroup dated
December 1, 2020, pursuant to which Vingroup agreed to provide and procure its subsidiaries to provide
VinFast with research and development services and assign to VinFast all rights, titles and interests in
and to any intellectual property created or developed from such research and development services
(“Owned IP”). The fee shall be negotiated and determined in good faith by Vingroup and VinFast on a
case-by-case basis. VinFast compensate Vingroup for the cost of materials that Vingroup acquires from
local or foreign suppliers in relation to the performance of such services.
The VinFast Electric Drive System (“EDS”) is comprised of three main components: inverter,
permanent magnet synchronous electric motor and gear box. Extensive research and development
activities ranging from simulation, modeling and dynamometer to bench testing were carried out in-
house to develop our EDS. High-efficiency, liquid-cooled permanent magnet synchronous (“PMS”)
motors are designed to deliver high power and torque, while maintaining a competitive power-to-weight
ratio and upholding the highest global safety standards. Our R&D activities have allowed us to reduce
our overall development cycle time compared to competitors and produce a series of motors which are
compact, powerful and robust in structure, and have a wide range of power output. VinFast patented
technology paved the way to meet global thermal and noise, vibration and harshness (“NVH”)
requirements of electric motors.
Currently, VinFast's research field specifically focuses on:
Smart electric and self-driving vehicles: VinFast is developing advanced electric vehicle models,
integrating AI, IoT, Big Data, and ADAS technologies. The goal is to provide a safe, convenient, and
environmentally friendly driving experience.
Smart energy solutions: VinFast is researching renewable energy solutions and smart energy
management systems to optimize energy usage efficiency.
VinFast owns two research centers:
The VinFast Research Institute in Hai Phong is the largest research and development center of VinFast,
focusing on electric vehicles, electric vehicle batteries, and other advanced technologies.
The Pininfarina Design Center in Italy collaborates with VinFast to design luxurious and high-class
electric vehicle models.
VinFast collaborates with leading global technology companies such as Magna Steyr, Qualcomm, and
Siemens to enhance research, development, and production activities. VinFast also participates in
international research projects such as "Smart Electric Vehicle Solutions for Smart Cities" (EVolution)
and "Autonomous Driving Development".
With a systematic research and development strategy, effective international cooperation, and clear
objectives, VinFast is gradually asserting its position in the international market. VinFast promises to
bring advanced smart electric, self-driving, and smart energy vehicle products and services, contributing
to improving the quality of life and protecting the environment.
Notable R&D achievements of VinFast:
Successful development of electric vehicle models VFe34, VF8, VF9.
VinFast has filed over 1,000 patents for electric vehicles, electric vehicle batteries, and advanced
technologies.
VinFast is considered one of the world's leading electric vehicle manufacturers with a target of selling
1 million electric vehicles annually by 2026.
With relentless efforts in research and development activities, VinFast is establishing a strong position
in the global electric vehicle market, contributing to making Vietnam a leading hub for innovative and
manufacturing electric vehicles worldwide.

Smart Mobility and the VinFast Differentiators

Our full-service driver and ownership experience is a hallmark of the VinFast brand and built around
the concept of Smart Mobility, which we believe differentiates us from our competitors. To us, Smart
Mobility encompasses the following:

Premium Quality Product

Thoughtful design for a boundless premium experience – We evoke EMOTION and PASSION between
driver and car

Top-of-the-line vehicle lineup – We offer a LUXURIOUS and STYLISH product line with skilled
craftsmanship in every detail
 “TECHNOLOGY FOR LIFE” – We embrace PERSONALIZATION and CONNECTIVITY with a
full suite of standard smart infotainment features including a heads-up display, virtual personal assistant,
in-car commerce and mobile office capabilities, creating a space for lifestyle between home and office

Sustainability – We aim to deliver our products RESPONSIBLY to help promote a greener world for
us all

Steadfast focus on meeting world-class safety standards – We focus unwaveringly on SAFETY

Inclusive Price

ACCESSIBILITY – We seek to offer our products in a more approachable and accessible way relative
to closest EV peers to help increase opportunities for greater EV adoption globally

We offer high performance, luxurious features, premium quality, an advanced suite of enhanced
technology and cutting-edge engineering execution at a COMPETITIVE price point

FLEXIBLE purchase options, including own, lease, and our battery subscription program, where
available, to suit any customer’s preference

Peace-of-Mind Ownership Experience

Our goal is to provide BEST-IN-CLASS after-sale service with up to 10-year / 125,000-mile warranty
and 24/7 roadside assistance

WORRY-FREE experience through our “VINFAST SERVICE” model with remote and mobile service
offerings

EASE-OF-ACCESS to our network of service showrooms and integrated suite of EV charging solutions
through VinFast Power Solutions and partners such as Electrify America, EVgo, Bosch, Blink, Flo and
ChargeHub.

Battery Technology and Solutions

We believe that an integrated battery solution is important for our go-forward strategy of providing
high-quality EVs at an inclusive price point for our global customers. To that end, VinFast and VinES
have entered into a consultancy service agreement pursuant to which VinFast will be able to leverage
VinES’ expertise and specialization on battery R&D, manufacturing, testing, performance and cost
optimization and battery recycling. VinES provides EV battery packs for our vehicles, while VinFast
remains the point of customer engagement for both sales and aftersales service. VinES directly invests
in and owns the manufacturing facilities and the intellectual property associated with its battery cell and
battery pack production. See “— Technology — Battery Design and Battery Management System
Design.”
For select markets and models, particularly in the initial stage of sales, and particularly in Vietnam, we
offer our customers the option to purchase our vehicles with the battery as well as the flexibility to
participate in our battery subscription program. Our battery subscription program, where available, is
intended to supplement our primary model of outright sale of the full chassis and battery and to provide
a flexible alternative that makes our EVs accessible at a lower, inclusive price point. We view this as a
near-term strategy that will help facilitate early adoption by more drivers and bridge the transition to a
lower-cost EV battery and long-term widespread adoption of EVs. It also highlights our ability and
willingness to adopt innovative business models, prioritizing flexibility for our customers.
Under the battery subscription program, where applicable, customers will enter into battery lease
contracts with us and pay a fixed monthly battery subscription fee for unlimited miles, except for
customers that placed reservations before September 2022 in Vietnam, who may select between fixed
and variable monthly subscription fees under our prior sales policy. Our battery subscription program
will also include the provision of a replacement or repair in case the battery capacity falls under 70%
for the duration of the battery lease. We plan to monitor market demand and our peers’ product offerings
on an ongoing basis and adjust our go-to-market strategy dynamically with an aim of ensuring that
VinFast EVs and the VinFast Lifestyle remain accessible.

Technology

A core component of our Chairman’s vision when founding VinFast was integrating the concept of
“technology for life” into our vehicles. We believe technology should help enable the safest, most
driver-friendly experience possible, and we focus relentlessly on improving that. We have endeavored
to make owning, driving or riding in a VinFast a seamless experience between home, workspace and
everything in between. We achieve this primarily through a unified driving experience built around the
driver and enabled through technology. This is exemplified through our driver-friendly central console
screen, benefiting from an on-windshield heads-up-display, summoning the car from car-park to curb,
self-parking capability, voice-activated command systems and AI-powered driver-assist and ADAS
capabilities. We offer a robust suite of tech-enabled features that come standard across our produced
segments as part of the VinFast experience and will provide additional enhancements to meet our
drivers’ preferences for an additional cost. The VinFast technology ecosystem extends beyond the car
itself via our companion app, as well as with an online networking experience through the VinFast
community of drivers, reflecting the emphasis on Smart Mobility and Connectivity at all levels of the
VinFast driving experience.
Underlying our technology design philosophy is an intense focus on standardization and the
interrelationship of key designs and parts to deploy innovation as cost-effectively as possible. We
proactively engineer as much of our ecosystem to be interchangeable across models as possible and
practical so that when we engineer or innovate one piece of technology, it can be integrated with little
additional cost or operational friction. This has enabled us to rapidly launch new products within the
EV market. This permeates our overall production schedule and enables us to keep control of product
quality and cost as we continue to grow and innovate.

Integrated Partnership Model

We deliver top-tier technology using a well-practiced screening approach to integrate and own a specific
technology capability in-house when economically feasible. Otherwise, we align with leading partners
who have a competitive advantage of production for certain technology or components that will improve
our production efficiencies. We safeguard our technological innovation with intellectual property
patents, whether developed within VinFast or sourced through well-vetted partnerships, to ensure that
VinFast controls the key decision-making technology powering our vehicles. This relationship
management framework includes in-house capabilities developed over the years at VinFast and the
Vingroup family of companies.
We aim to keep in-house certain critical components of electric vehicles, including our electric motor,
infotainment software, ADAS software, and battery management system design. We seek margin
benefit and economy-of-scale uplift by outsourcing production of certain hardware components where
our partners can provide us a competitive advantage. We also commit a significant amount of resources,
budget and time to finding and sourcing the best possible partnerships across global suppliers and
continuously review these contracts and arrangements to ensure optimal terms, information-sharing and
operational efficiencies in our partnership network.

Connected Car, Connected Driver, Connected Lifestyle

We have created a proprietary infotainment system that provides a seamless, integrated and fully-
connected experience for our drivers. Our goal is to bring “technology for life” to our drivers and
provide an unmatched experience in terms of convenience, customization and community. Deep
learning AI technology facilitates our ability to further understand and adapt vehicle settings to the
driver’s lifestyle profile. Additionally, through a single, large central screen and a heads-up display,
drivers can access multiple applications and services through a unified and intuitive platform. Software
updates occur seamlessly through an OTA update mechanism, powered through edge network
computing supplied in collaboration with a technology partner.
VinFast vehicles and their integrated technology offerings save drivers’ time by maximizing flexibility
as a “Live and Work” hub. This allows drivers the conveniences of checking emails and messages, with
safety remaining the top priority. Mobile Home is expected to include multiple virtual assistants, smart
home control, video streaming and karaoke.
The VinFast Infotainment and Connected Driver systems is capable of learning and understanding the
driver’s preferences to optimize their driving experience. We place significant focus on cybersecurity
in order to securely protect our drivers’ personal data.
Within our infotainment system, we have a variety of standard features, as well as an expanding
portfolio of value added services and features that will enable ancillary revenue streams via
subscriptions or on-demand features, such as geo-fencing, live traffic alerts, satellite view, Q&A with
virtual assistant, smart home control, text-to-speech, speech-to-text and eCommerce.

Safety and ADAS

Safety is the most important pillar of our investment in technology. We want VinFast drivers to
experience the safest possible mobility environment. The integrated heads-up display replaces the
traditional driver console to keep drivers always informed without distracting their eyesight from the
road. This system notifies drivers with information, ranging from regular vehicle alerts to specific
warnings or notifications permitting the vehicle to act on the driver’s behalf, to actual triggers that are
tied to the vehicle’s ADAS that will take over to act in the event of an emergency.
We design and develop our ADAS and Autonomous Driving software with a primary focus on safety
and an equivalent emphasis on providing the latest advancements in autonomy. Our vehicles will be
launched with Level 2 ADAS technology, including Active Safety and Highway Assist+ capabilities.
This includes autonomous emergency braking, lane change assist, remote parking and summon abilities.
Our driver facial recognition technology assists with driver-alertness safety features and automatic
emergency calls. Our in-house team focuses on providing quality control and helping to co-develop
unique features. We also leverage the Vingroup technology ecosystem in our ADAS development,
including image processing from VinAI and natural language processing from VinBigData.
Autonomous Driving (Level 3 and above) promises to revolutionize the user experience in vehicles,
improving the Smart Services offering while ensuring safety. We plan to introduce Level 3 Traffic Jam
Pilot as an optional feature for our vehicles, which will allow customers to take their hands, eyes and
mind off of the road, under certain circumstances. When the Traffic Jam Pilot is active, the driver can
enjoy our Smart Services offerings. We are also working on HomeZone parking features, a first step
towards a Level 4 Auto Valet parking functionality, which is expected to enable drivers to immediately
exit their vehicle upon arrival at a destination. A driverless VinFast vehicle will be able to find a parking
spot and notify customers when it is successfully parked through our companion app. The driver can
also summon their vehicle when they are ready to leave.
Electric Drive System / Powertrain

The VinFast Electric Drive System (“EDS”) is comprised of three main components: inverter,
permanent magnet synchronous electric motor and gear box. Extensive research and development
activities ranging from simulation, modeling and dynamometer to bench testing were carried out in-
house to develop our EDS. High-efficiency, liquid-cooled permanent magnet synchronous (“PMS”)
motors are designed to deliver high power and torque, while maintaining a competitive power-to-weight
ratio and upholding the highest global safety standards. Our R&D activities have allowed us to reduce
our overall development cycle time compared to competitors and produce a series of motors which are
compact, powerful and robust in structure, and have a wide range of power output. VinFast patented
technology paved the way to meet global thermal and noise, vibration and harshness (“NVH”)
requirements of electric motors.
Our motor series has been tested through various duty cycles to replicate real driving conditions,
controlled with our sophisticated software to meet our goals of driver comfort and tech-forward
vehicles, while remaining competitive on a global scale. From an electromagnetic perspective, our
motors are equipped with different types of winding per various levels of compactness, thermal
requirements, cost and NVH attributes, among other features. In addition to compact design and short
development cycle, the ease of manufacturing and optimized mounting points for simple integration
and installation of the EDS system to the vehicles remain high priorities during the development cycle.
We are also constantly looking for means of enhancing and innovating our powertrain systems, for
example optimizing key hairpin motor technology and improving existing components, including
cooling systems.
In our EDS software, we have integrated control algorithms for PMS motor control such as maximum
torque per ampere (“MTPA”) which reduces copper loss in the electric motor, maximum torque per
voltage (“MTPV”) which increases voltage utility capability of the high voltage (“HV”) battery pack
and maximum torque per watt (“MTPW”) which optimizes the power of the HV battery pack. All of
these advanced control algorithms increase the efficiency and performance of our powertrain system.
Our software comes standard with safety features to meet ASIL-C (ISO26262) and integrated
Cybersecurity (Level 3).

E/E Architecture

We have built a modern take on traditional E/E architecture to support our initial global vehicle rollout,
allowing swift time-to-market with our E/E design that leverages global peers and is integrated across
each of our current models. This approach allows us to scale back electronic control units as necessary
in order to meet our desired cost level in bill of materials. We will have a standard architecture from the
B- through E-segments, with the ability to remove feature sets as more basic models are manufactured.
Our next-generation E/E architecture is currently in development, which will have the ability to support
Level 3+ ADAS and set the standard globally with a domain-based architecture.

Battery Design and Battery Management System Design

The batteries in our vehicle are packed by our partner VinES, which is also a subsidiary of Vingroup,
and other third party suppliers. We source battery components from a variety of third-party suppliers
including Gotion, Samsung SDI and CATL. The capacity of the battery components is one of the key
factors that affects the driving ranges of our EVs.
We offer the VF 8 with two driving range options that utilize different battery components: the “City
Edition” option and the 87.7 kWh battery option. We began U.S. deliveries of the VF 8 in March 2023
from our initial U.S. shipment of 999 VF 8 “City Edition” vehicles in both Eco and Plus trims. In April
2023, we dispatched a shipment of approximately 1,900 VF 8 (87.7 kWh battery) that use battery
components that result in a longer driving range than the VF 8 “City Edition, and plan to deliver the VF
8 vehicles from this shipment to North American customers in the second half of 2023. Deliveries in
Europe are expected to begin in the second half of 2023. We have no plans for future offerings of the
VF 8 “City Edition” in North America or Europe but will continue to offer this VF 8 “standard driving
range” option in Vietnam. The VF 8 Eco trim (87.7 kWh battery) has a longer driving range (targeted
WLTP range of 293 miles; certified EPA range of 264 miles) than the VF 8 Eco trim “City Edition”
(WLTP range of 261 miles; certified EPA range of 207 miles), and the VF 8 Plus trim (87.7 kWh
battery) has a longer driving range (targeted WLTP range of 278 miles; certified EPA range of 243
miles) than the VF 8 Plus trim “City Edition” (WLTP range of 249 miles; certified EPA range of 191
miles). The VF 8 Eco trim and Plus trim with 87.7 kWh battery utilize higher capacity battery
components that offer a longer driving range, and the Plus trim of our vehicles in general offer higher
horsepower than the Eco trim version which might, amongst other things, result in a lower driving range
for the Plus trim as compared to the Eco trim.
We have sourced battery packs from VinES since VinES commenced production of battery packs in
the second quarter of 2022. VinES plans to be a fully integrated battery cell and pack manufacturer and
is developing its own battery cell technology and battery cell production capabilities in Vietnam. As
affiliates in the Vingroup ecosystem, VinES is expected to grow in lockstep with us to remain a tier 1
supplier of batteries to us as we expand. We believe that these advancements by VinES can assist in
reducing the battery supply chain uncertainty of third party providers that are outside of the Vingroup
ecosystem and potentially enhance our overall value proposition to our drivers. We believe that our
partnership with VinES will continue to provide an important strategic benefit in the management of a
key input cost as we grow, as well benefits to drivers of our EVs in terms of day-to-day maintenance
and functionality. To that end, another of our Vingroup affiliates has made an investment in ProLogium,
a manufacturer of next-generation solid-state batteries, which we believe will lead to future
opportunities for us and VinES to collaborate in applying next-generation solid-state battery technology
to VinFast vehicles. Additionally, in March 2023, VinES entered into a collaboration agreement with
StoreDot to develop XFC battery cells in different form-factors, in preparation for mass production and
supply. This can help us reduce uncertainties associated with reliance on unrelated third parties outside
of the Vingroup ecosystem for batteries. VinES is in the process of commissioning a battery pack
assembly pack in Ha Tinh, Vietnam to expand its battery pack production capabilities beyond its
existing facilities in Hai Phong, Vietnam. In addition, VinES is developing a second lithium cell facility
in Ha Tinh, Vietnam, in collaboration with Gotion.
VinES packs batteries, modules and other related power electronics to meet our requirements and
provide optimal performance. The battery systems provide a high level of energy, allowing VinFast
vehicles to achieve competitive performance ranges while optimizing for production and cost. For
example, the usage of battery systems reduces the costs to run our vehicles’ heating and air-conditioning
systems when compared to equivalent ICE models. The batteries utilize the high energy density and
performance of Samsung 21700 NCA cells and side-cooling channels to maximize cell usage
performance and safety. The cells are first packaged into the modules and then into the battery packs
by VinES, which undergo extensive testing to achieve our standard level of reliability and endurance.
The battery design leverages the common architecture among vehicles and will initially consist of
lithium-ion nickel cobalt aluminum chemistry. In the future, the batteries may include other advanced
or more cost-effective battery chemistries to address unique needs and requirements of different
markets. Our in-house developed battery management system (“BMS”) hardware and software
monitors the status of the battery pack and manages its functionalities. The BMS has been designed
with ruggedness in mind to facilitate operation across a range of operating conditions. Its adaptive
algorithm monitors the health of the battery pack in real-time and optimizes its performance. The BMS
comes with integrated support for future cybersecurity and intended cloud smart features, which can be
easily customized to our EV models to provide exceptional safety, accuracy and performance
optimization based on battery status, operating conditions and driver behavior. Our software and
integration with our vehicle control unit (“VCU”) is designed to allow drivers to upgrade the batteries
in their vehicles with higher-power batteries as they are developed in the future through a simple
software update upon installation.
VinES has a battery testing and validation center which ensures product quality and guarantees its
products are tested and meet international quality standards. VinES intends to further develop its
technologies to provide better performance, including proprietary cell design, advanced module-less
pack architecture and advanced smart functions that extend the features of the connected car. VinES
also intends to adapt its engineering to latest-available battery innovations as soon as economically
practical for the VinFast product range. We believe that the investments that VinES has made into the
cell and pack manufacturing capabilities has positioned VinES to be able to support our growth plans.
In March 2023, VinES and Li-Cycle entered into an agreement for recycling VinES’s Vietnamese-
sourced battery materials and to assess the establishment of a recycling plant in Vietnam near VinES’s
lithium-ion battery manufacturing facilities. The agreement builds upon a strategic, long-term battery
recycling partnership between the parties, first announced in October 2022, which is expected to include
global recycling solutions for VinES that support the companies’ ESG strategy and shared vision to
advance a sustainable, closed-loop battery supply chain.
In addition, in October 2022, we entered into an MOU with CATL to collaborate in the development
and production of CIIC skateboard chassis products that integrate battery packs, electric motors and
other core systems and components of an EV into a single layer at the bottom of the vehicle, with the
goal of reducing manufacturing costs, vehicle weight and energy consumption and maximizing cabin
space.

VinFast Companion App and the VinFast Driver Network

Accessibility is key to enabling our technology ecosystem. Enabling interaction anytime and anywhere
with our vehicles is top of mind from our design approach. Our mobile companion app integrates our
customers into the VinFast ecosystem from day one of the vehicle life cycle. The app also act as a portal
to VinFast’s ecosystem in which drivers can connect with VinFast for service, vehicle information and
exclusive offers.
We have developed a companion app version for each of our target markets. In Vietnam, we formally
launched the companion app in December 2021. In the U.S., we published our companion app in the
Apple and Google app stores in December 2022. In Canada, we launched our companion app in the
Apple and Google app store in June 2023. In Europe, the companion app is in the final development
stage prior to submission to the two leading app stores in those markets for approval to publish.
The companion app is designed and targeted to provide end-to-end digital features, defined by six key
feature categories, including vehicle controls, charging, navigation, invisible service (e.g., booking
service appointments, roadside assistance and firmware for OTA updates), smart vehicle functions (e.g.,
valet mode) and smart ownership functions (e.g., managing driver profiles, payments for charging
services and paid-OTA updates).
We plan to monitor companion app performance and release periodic updates to improve app quality
and performance, implement bug fixes and provide feature content updates.

Risks Related to VinFast’s Information Technology, Cybersecurity and Data Privacy

VinFast utilizes third-party service providers to support its service and business operations and any
disruption or delays in service from these third-party providers could materially and adversely affect
its business, financial condition, results of operations, cash flows and prospects.
VinFast’s brand, reputation and ability to attract customers depends on the reliable performance of its
vehicles and the supporting systems, technology, and infrastructure. For example, VinFast outfits its
vehicles with in-vehicle services and functionality that use data connectivity to monitor performance
and capture opportunities for cost-saving preventative maintenance. The availability and effectiveness
of these services depend on the continued operation of information technology and communication
systems. VinFast relies on leading third party providers to host its cloud computing and storage needs.
VinFast does not own, control, or operate its cloud computing physical infrastructure or their data center
providers. Although VinFast has put in place disaster recovery plans, including the use of multiple cloud
service providers spread out across different locations, VinFast’s systems and operations are still
vulnerable to damage or interruption from, among others, fire, flood, power loss, natural disasters,
telecommunications failure, terrorist attacks, acts of war, electronic and physical break-ins, system
vulnerabilities, earthquakes and other events at the sites of such providers. Ransomware within
VinFast’s information systems could target its manufacturing and/or business capabilities limiting the
availability and uptime of these systems or eliciting payment from it. The occurrence of any of the
foregoing events could result in damage to systems and hardware or could cause them to fail completely,
and VinFast’s insurance may not cover such events or may be insufficient to compensate it for losses
that may occur.
Problems faced by VinFast’s third-party cloud service providers with their telecommunications network
providers with which they contract or with the systems by which they allocate capacity among their
customers, including VinFast, could adversely affect the experience of VinFast’s customers. VinFast’s
third-party cloud service providers could decide to close their facilities without adequate notice resulting
in loss of service and negative effects in its systems. Any financial difficulties, such as bankruptcy
reorganization, faced by VinFast’s third-party providers or any of the service providers with whom they
contract may have negative effects on VinFast’s business, the nature and extent of which are difficult
to predict.
Business interruption insurance that VinFast may carry in the future may not be sufficient to compensate
it for the potentially significant losses, including the potential harm to the future growth of its business,
which may result from interruptions in its service as a result of system failures. Any errors, defects,
disruptions or other performance problems with VinFast’s services could harm its business, financial
condition, results of operations, cash flows and prospects.
Breaches in data security, failure of information security systems and privacy concerns could subject
VinFast to penalties, damage its reputation and brand, and adversely impact its business, financial
condition, results of operations, cash flows and prospects.
VinFast and its suppliers and service providers may face challenges with respect to information security
and privacy, including in relation to the collection, storage, transmission and sharing of information.
VinFast and its suppliers and service providers collect, transmit and store confidential and personal and
sensitive information of its employees and/or customers, including names, accounts, user IDs and
passwords, vehicle information, and payment or transaction related information. VinFast is also subject
to certain laws and regulations, such as “Right to Repair” laws, that require it to provide third-party
access to its network and/or vehicle systems. In addition, VinFast’s EVs are connected to the internet
and are accessible by various persons, whether remotely or in person, including by technicians during
car maintenance services, and VinFast may integrate its service providers’ software or services into its
systems and applications, all of which further heighten the risk of breaches of its EVs’ security systems
and unauthorized access to personal data stored in the EV systems.
Increasingly, companies are subject to a wide variety of attacks on their networks and information
technology infrastructure on an ongoing basis. Traditional computer “hackers,” malicious code (such
as viruses and worms), phishing attempts, employee theft or misuse, denial of service attacks,
ransomware attacks and sophisticated nation-state and nation-state supported actors engage in
intrusions and attacks that create risks for VinFast’s (and its suppliers’) internal networks, vehicles,
infrastructure, and cloud deployed products and the information they store and process. In addition,
hardware, components and software that are produced by VinFast or third parties and utilized in
VinFast’s EVs may contain design or manufacturing defects that could unexpectedly interfere with the
operation or security of its EVs.
Although VinFast has implemented security measures to prevent such attacks, its networks and systems
may be breached due to the actions of outside parties, employee error, malfeasance, a combination of
these, or other causes, and as a result, an unauthorized party may obtain access to its systems, networks,
or data. If a threat actor is able to hack into VinFast’s EV systems, the safety of the EV and its passengers
may become at risk. VinFast and its suppliers have in the past been subject to ransomware and phishing
attacks. Though VinFast does not believe it experienced any material losses or any sensitive or material
information was compromised, it was unable to determine conclusively that this was the case. VinFast
has implemented remedial measures in response to such incidents. VinFast cannot guarantee that such
measures will prevent all incidents in the future.
VinFast works with various third-party suppliers and service providers in the course of operating its
business, and it depends on such third parties to take appropriate measures to protect the security and
integrity of their information and systems. VinFast cannot assure you that the measures taken by its
third-party suppliers and service providers will be effective.
VinFast and its third-party suppliers and service providers may face difficulties or delays in identifying
or otherwise responding to any attacks or actual or potential security breaches or threats. A breach in
VinFast’s data security or that of its suppliers or service providers could create system disruptions or
slowdowns and provide malicious parties with access to information stored on its networks, resulting
in data being publicly disclosed, altered, lost, or stolen, which could subject VinFast to liability and
adversely impact its business, financial condition, results of operations, cash flows and prospects.
Further, any breach in VinFast’s data security or those of its third-party suppliers and service providers
could allow malicious parties to access sensitive systems, such as its product lines and the vehicles
themselves. Such access could adversely impact the safety of VinFast’s employees, its customers and
third parties.
Furthermore, cybersecurity organizations around the world have published warnings of increased
cybersecurity threats to businesses, and external events, like the conflict between Russia and Ukraine,
may increase the likelihood of cybersecurity attacks. VinFast and its suppliers and service providers
may be subject to retaliatory cyberattacks by state or non-state actors in response to economic sanctions
and other political actions taken by governments in the North America or Europe where it operates.
Any actual, alleged or perceived failure to prevent a security breach or to comply with VinFast’s
cybersecurity policies or cybersecurity-related legal obligations, failure in VinFast’s systems or
networks, or any other actual, alleged or perceived data security incident VinFast or its suppliers or
service providers suffer, could result in damage to its reputation, negative publicity, loss of customers
and sales, loss of competitive advantages over its competitors, increased costs to remedy any problems
and provide any required notifications and consents, including to regulators and/or individuals, and
otherwise respond to any incident, claims, regulatory investigations and enforcement actions, costly
litigation, administrative fines and other liabilities. VinFast would also be exposed to a risk of loss or
litigation and potential liability under laws, regulations and contracts that protect the privacy and
security of personal data. VinFast may also face civil claims including representative actions and other
class action type litigation (where individuals have suffered harm), potentially amounting to significant
compensation or damages liabilities, as well as associated costs and fees, diversion of internal resources,
and reputational harm.
In addition, VinFast may incur significant financial and operational costs to investigate, remediate and
implement additional tools, devices and systems designed to prevent actual or perceived security
breaches and other security incidents, as well as costs to comply with any notification obligations
resulting from any security incidents. Any of these negative outcomes could adversely impact the
market perception of VinFast’s products and customer and investor confidence in VinFast, and would
materially and adversely affect its business, financial condition, results of operations, cash flows and
prospects.
VinFast retains certain information about its customers, which may subject it to customer concerns or
various privacy and consumer protection laws.
VinFast uses its vehicles’ electronic systems to log certain information about each vehicle’s use, such
as location, charge time, battery usage, mileage and driving behavior, among other things, in order to
aid it in vehicle diagnostics and repair and maintenance, as well as to help it customize and optimize
the driving and riding experiences. VinFast’s customers may object to the use of this data, which may
harm its reputation and business. Possession and use of VinFast’s customers’ driving behavior and data
in conducting its business may subject it to legislative and regulatory burdens in Vietnam and other
jurisdictions that could require notification of data breach, restrict VinFast’s use of such information,
and hinder its ability to acquire new customers or market to existing customers. If customers allege that
VinFast has improperly released or disclosed their sensitive personal data, VinFast could face legal
claims, lawsuits and reputational harm. If third parties improperly obtain and use sensitive personal data
of VinFast’s customers, VinFast may be required to expend significant resources to resolve these
problems.
As VinFast expands its operations internationally, VinFast will be required to comply with increasingly
complex and rigorous regulatory standards enacted to protect business and personal information in the
U.S., Canada, Europe and elsewhere. Such regulations may impose additional regulatory obligations
regarding the handling of personal information and further provide certain individual privacy rights to
persons whose data is processed. Data protection and privacy-related laws and regulations are evolving
and may result in ever-increasing regulatory and public scrutiny and escalating levels of enforcement
and sanctions. VinFast is monitoring these developments, but it may, in addition to other impacts,
experience additional costs associated with increased compliance burdens and restrictions on the
conduct of its business and the manner in which it interacts with its customers.
Failure to comply with applicable laws and regulations could result in regulatory enforcement actions
against VinFast. For example, VinFast’s misuse of or failure to secure personal information could result
in violation of data privacy laws and regulations, proceedings against VinFast by governmental entities
or others, and/or result in significant liability and damage to its reputation and credibility. These
possibilities, if borne out, could have a negative impact on revenues and profits. If a third party alleges
that VinFast has violated applicable data privacy laws, it could face legal claims, damages and
administrative fines as well as reputational harm among consumers, investors, and strategic partners.
Any unauthorized control or manipulation of VinFast’s vehicles’ systems could result in a loss of
confidence in VinFast and its vehicles and harm its business.
VinFast’s vehicles contain complex technology systems. VinFast has designed, implemented, and tested
security measures intended to prevent cybersecurity breaches or unauthorized access to VinFast’s
information technology networks, its vehicles and their systems, and intend to implement additional
security measures as necessary and to comply with the relevant standards of VinFast’s target markets,
such as ISO 21434:2021, UNECE R-155 and R-156 regulations on the safety of connected vehicles.
However, hackers and other malicious actors may attempt in the future to gain unauthorized access to
modify, alter, and use networks, vehicle software and VinFast’s systems to gain control of, or to change,
VinFast’s vehicles’ software or to gain access to data stored in or generated by the vehicle. Errors and
vulnerabilities, including zero day vulnerabilities, in VinFast’s information technology systems will be
probed by third parties and could be identified and exploited in the future, and VinFast’s remediation
efforts may not be timely or successful. Any unauthorized access to or control of VinFast’s vehicles or
their systems or any unauthorized access to or loss of data could result in risks to its customers and
other third parties, unsafe driving conditions, or failure of its systems, any of which could result in
interruptions in VinFast’s business, legal claims or proceedings which may or may not result in its favor
and could subject it to significant liability. In addition, regardless of their veracity, reports of
unauthorized access to VinFast’s vehicles, their systems or data, as well as other factors that may result
in the perception that VinFast’s vehicles, their systems or data are capable of being “hacked” and lack
appropriate safety controls, could negatively affect its brand and harm VinFast’s business, financial
condition, results of operations, cash flows and prospects.

Risks Related to VinFast’s Intellectual Property

VinFast’s use of open source software in its applications could subject its proprietary software to
general release, adversely affect its ability to sell its services and subject it to possible litigation, claims
or proceedings.
VinFast uses open source software in connection with the development and deployment of its products
and services, and it expects to continue to use open source software in the future. Companies that use
open source software in connection with their products have, from time to time, faced claims
challenging the use of open source software and/or compliance with open source license terms. As a
result, VinFast could be subject to suits by parties claiming ownership of what VinFast believes to be
open source software or claiming noncompliance with open source licensing terms. Some open source
software licenses may require users who distribute proprietary software containing or linked to open
source software to publicly disclose all or part of the source code to such proprietary software and/or
make available any derivative works of the open source code under the same open source license, which
could include proprietary source code. In such cases, the open source software license may also restrict
VinFast from charging fees to licensees for their use of its software. While VinFast monitors the use of
open source software and try to ensure that open source software is not used in a manner that would
subject its proprietary source code to these requirements and restrictions, such use could inadvertently
occur, in part because open source license terms are often ambiguous and have generally not been
interpreted by U.S. or foreign courts.
VinFast may not be able to prevent others from unauthorized use of its intellectual property, which
could harm its business and competitive position.
VinFast may not be able to prevent others from unauthorized use of its intellectual property, which
could harm its business and competitive position. VinFast relies on a combination of owned, jointly
owned and licensed patents, trade secrets (including those in its know-how), copyrights, service marks,
trademarks and other rights granted by intellectual property laws, as well as employee and third-party
nondisclosure agreements, intellectual property licenses and other contractual rights to establish and
protect VinFast’s technology and intellectual property rights. While Vingroup has registered VinFast’s
tradename, logo and V line design worldwide, VinFast’s EV and e-scooter names have only been
registered in its target markets, while the
industrial designs for various EV models have only been submitted and registered in various key
markets. Thus, VinFast’s intellectual property rights may not be enforceable across various international
jurisdictions and may be challenged, contested, circumvented or invalidated by third parties.
The occurrence of any of the foregoing events may result in limitations in the scope of VinFast’s
intellectual property or restrictions on VinFast’s use of its intellectual property rights or may adversely
affect the conduct of its business. Despite VinFast’s efforts to protect its owned, jointly owned and
licensed intellectual property rights, third parties may attempt to copy or otherwise obtain and use
VinFast’s intellectual property or seek court declarations that they do not infringe upon VinFast’s
intellectual property rights. Monitoring unauthorized use of VinFast’s intellectual property is difficult
and costly, and the steps VinFast has taken or will take to prevent misappropriation may not be
successful. From time to time, VinFast may have to resort to litigation to enforce its intellectual property
rights, which could result in substantial costs and diversion of its resources. Failure to adequately protect
VinFast’s intellectual property rights could result in its competitors offering similar products,
potentially resulting in the loss of some of VinFast’s competitive advantage and a decrease in its revenue
which would adversely affect its business, financial condition, results of operations, cash flows and
prospects.
VinFast may need to defend itself and its employees, agents and contractors against patent, trademark
and/or other intellectual property right infringement claims, which may be time-consuming and would
cause VinFast to incur substantial costs.
VinFast is involved in and may in the future become party to additional intellectual property
infringement proceedings. From time to time, VinFast may receive communications from holders of
patents, trademarks, trade secrets or other intellectual property or proprietary rights alleging that
VinFast is infringing, misappropriating, diluting or otherwise violating such rights either directly or
through its employees, agents or contractors. Such parties may in the future bring suits against VinFast
alleging infringement or other violation of such rights, or otherwise assert their rights and urge VinFast
to take licenses to their intellectual property. Moreover, if the third-party technology partners (including
VinFast’s affiliates) with whom VinFast jointly owns or from whom it licenses intellectual property
rights infringe, misappropriate, dilute or otherwise violate other parties’ intellectual property rights,
VinFast may also be subject to liability pursuant to any ensuing litigation.

Although VinFast’s contracts with third parties typically include indemnification clauses which require
such parties to indemnify VinFast against any damages arising from infringements of other’s intellectual
property rights, in the event of a successful claim of infringement against VinFast or its third-party
technology partners, or if VinFast fails or are unable to obtain a license to the infringed technology or
other intellectual property right, VinFast’s business, financial condition, results of operations, cash
flows and prospects could still be materially and adversely affected. In addition, any litigation or claims,
whether or not valid, could result in substantial costs, negative publicity and diversion of resources and
management attention. VinFast’s rights to indemnity may not fully cover the costs or damages arising
from any intellectual property right infringements that may occur.

Marketing

VinFast is applying effective marketing elements to bring its products to customers. With a methodical
marketing strategy and strong investment, VinFast is gradually asserting its position in the Vietnamese
and international electric vehicle market. This strategy focuses on the following key elements:
In terms of products, VinFast focuses on:
Smart, self-driving electric vehicles: VinFast pioneers the development of electric vehicles integrating
AI, IoT, Big Data and ADAS technologies, providing a safe, convenient and environmentally friendly
driving experience.
Luxurious and classy design: In cooperation with Pininfarina, a famous Italian car designer, VinFast
creates electric cars with luxurious and classy designs, attracting customer tastes.
Competitive price: VinFast applies a flexible pricing strategy, suitable for the average income of
Vietnamese people, and at the same time implements many attractive incentives and promotions.
In terms of communication, VinFast applies:
Multi-channel communication strategy: VinFast uses a variety of communication channels such as TV,
newspapers, social networks, influencer marketing to reach potential customers.
Creative and attractive content: VinFast's communication campaigns are always creative, attractive,
creating a strong spillover effect, affirming its position as the leading electric vehicle brand.
In terms of distribution, VinFast is building:
Extensive dealer system: VinFast is building a nationwide dealer system, helping customers easily
access and experience products.
Online sales channel: VinFast develops an online sales channel, creating convenience for customers in
buying cars and making payments.
In terms of customer service, VinFast focuses on:
Professional customer care: VinFast provides professional and dedicated customer service, answers all
questions and supports customers quickly.
Good warranty: VinFast applies a long-term warranty, affirming product quality and trust in the brand.
With a methodical and effective marketing strategy, VinFast has achieved many successes:
Favorite electric car brand: VinFast has become a favorite electric car brand in Vietnam and reaches
out to the international market.
Impressive sales: VinFast car sales continuously increased, affirming its leading position in Vietnam's
electric vehicle market.
Prestige brand image: VinFast builds a prestigious, dynamic and pioneering brand image in the field of
electric vehicles.
 It can be affirmed that VinFast's marketing strategy is a successful example, contributing to making
VinFast one of the world's leading electric vehicle manufacturers.
In addition, VinFast also focuses on activities such as: creating a community of electric vehicle users
to share experiences and connect with the brand; focus on digital marketing to reach potential customers
on social networks; cooperate with reputable partners in the field of electric vehicles and technology to
improve the quality of products and services.
With relentless efforts, VinFast promises to continue to achieve more success in the future, contributing
to making Vietnam a leading electric vehicle innovation and manufacturing center in the world.

VINFAST STRATEGIES WERE BUILT

Our Key Focus Areas and Long-Term Growth Strategies

Our long-term growth strategy is anchored on the following key pillars:

Increase Global Reach to Meet Demand: Our strategy is to continue growing our global footprint into
areas where we expect high EV demand growth

The U.S., Canada and Europe, represent the largest addressable markets for our EVs, together expected
to represent approximately 33% of the global EV market by 2028, according to Frost & Sullivan. We
plan to target these markets concurrently as we roll out our initial line of EVs and expand our sales
network through new showroom openings.

We plan to expand both our physical showrooms and other sales efforts so that we can continue to provide
greater access to our products and price points as market conditions warrant. We are also exploring
potential partnerships with distribution agents, dealers and service partners to broaden our reach to
markets and customers. In Phase One of our global roll-out, we are beginning in the U.S., Canada,
Germany, France, the Netherlands and Vietnam. Concurrently, we expect to roll out our online platform
across the globe to execute on our digital strategy to complement the in-person experience. Our website
will allow for full customization of the vehicle and use virtual reality to allow for a near-tangible buying
experience from the comfort of our customers’ homes. In phase two, we plan to expand our penetration
in our initial target markets of the U.S., Canada, Germany, France, the Netherlands and Vietnam and to
begin distributing VinFast vehicles in other markets globally, including other countries in Europe, the
Middle East, Latin America and the Asia Pacific region, through partnerships with strategically selected
distributors. In addition, we continue to build out our B2B strategy of entering into business relationships
with large corporations and well-known leasing, mobility and short-term rental suppliers. Since the
beginning of our global rollout, we have evaluated potential demand from the B2B customer segment
and identified it as a meaningful contributor to our strategic vision. We believe that short-term rentals
serve as valuable test drive opportunities for our vehicles that can drive more future owners to our online
sales channel. In addition, we plan to offer insurance and maintenance services to expand our revenue
streams, and may evaluate pre-owned and remarketing opportunities to further service our customers and
financial service providers as part of our overall B2B strategy.

In the medium term, we also plan to expand our footprint to the greater Southeast Asia region beyond
Vietnam. After our initial global rollout to North America and Europe, we intend to expand our focus

back to Asia where we believe the strength of our track record as a leading automobile manufacturer in
Vietnam and the “Vingroup” brand can serve as a springboard to new successes in other countries in
Southeast Asia.

Continue Augmenting our “Technology for Life” Offering: We intend to remain at the forefront of
automotive technology through our in-house R&D and external partnerships. We seek to deliver the
best experience for our drivers with innovative customer-centric applications inside and outside the
vehicles. We plan to continuously make our vehicles smarter over time through OTA system updates,
and we intend to leverage the power of data to understand and serve our drivers better through AI.
Through a network of renowned partners in various industries, we aim to continue creating a technology
ecosystem that allows us to seamlessly adapt to the changing technology landscape broadly, and develop
features with the driver in mind, such as adding additional languages on our voice assistant, more
connectivity with mobile phones and more. We have more technologies and applications still in the
pipeline (such as enhanced autonomous features with ADAS) and plan to incorporate them into our
vehicles to constantly provide a state-of-the-art driving experience that we believe will attract new
drivers to our brand, build brand loyalty with existing drivers and help VinFast stand out as a leader
among our peers. Each of the vehicles that we currently plan to launch are planned to be offered with
ADAS Level 2 capabilities.
Innovate Our Commercial Approach to Drive Incremental Market Share: We intend to rapidly expand
our sales network across the globe, while simultaneously building out after-sales infrastructure to
support our drivers. We intend to approach the market with a significant social media presence, as well
as traditional advertising and in-person showrooms. A large tenet of our growth strategy will come from
our O2O customer engagement strategy, with the aim of allowing a high level of customization and
personalization for our drivers. Customers will be able to engage with us online through our website
and companion app, while our showroom network will provide an offline, tangible in-person
experience. We believe continued direct engagement is important, not only though our membership
program, but also through multiple touchpoints on social media. We believe the insights gained through
direct interaction with our drivers will allow us to respond efficiently to customer needs in future vehicle
feature development. Additionally, we plan to work with VinES on an ongoing basis to optimize our
battery costs, in order to maintain our price point differentiation in the EV market.
Expand Our Product Offering: We plan to continually evaluate the benefits of expanding our portfolio
into other high-growth, high-demand EV segments in the future. We plan to introduce new features for
the VF 8 and VF 9 in the next two years to provide a comprehensive and higher-end product offering,
focusing on sustainable materials and adding more premium features such as higher-end interior
materials, elevated smart features and enhanced ADAS. We also intend to evaluate expansion into
on sustainable materials and adding more premium features such as higher-end interior materials,
elevated smart features and enhanced ADAS. We also intend to evaluate expansion into segments such
as sedans, pickup trucks and commercial electric vehicles. We have a track record of rolling out our
vehicle platforms at a fast pace and aim to capitalize on market opportunities complementary to our
platform. Our in-house development of new products is based on research on the demands of our
drivers, and we are built to be nimble in responding to market opportunities. With respect to our current
anticipated all-electric SUV product line, in addition to the VF e34 (C-segment) rolled out in 2021, the
VF 8 (D-segment) rolled out in 2022, and the VF 5 (A-segment) and VF 9 (E-segment) rolled out in
early 2023, we plan to begin delivering the VF 6 (B-segment) and VF 7 (C-segment) in 2023 and the
VF 3 in late 2024. The VF 5, VF 6 and VF 7 were recognized on Forbes Wheels’ list of “The 10 coolest
cars from CES 2022.” We selected high-growth markets for these vehicles based on our evaluation of
market size and demand opportunity, and we will use the same level of scrutiny in conducting our
market research to determine how and when to expand into new product lines and new markets.
Enhance and Refine Our Service Offering: Building on our customer-centric mindset throughout our
development and commercial processes, we plan to continue expanding and improving our service
offering. As we continue to expand into additional geographies globally, we plan to build upon our
service network and mobile service platform to ensure on-demand coverage for all drivers. Given our
vehicles are OTA-upgrade enabled, we intend to continue developing technology to make servicing a
remote or hands-free process to the greatest extent possible. Along with expanding our service offering,
we expect to add incremental charging partners to our network, ensuring seamless and accessible
charging.
Pursue Enhanced Manufacturing Automation and Capacity Expansion: We plan to expand our global
maximum production capacity through investments in technology, equipment and infrastructure to add
manufacturing capacity within our existing facility in Hai Phong, as well as opening an additional
factory in the U.S. (assuming the realization of expected growth in demand for our EVs and the
availability of financing for, and timely and on-budget completion of, capacity expansion projects). In
2022, we entered into a series of agreements with North Carolina state and local authorities to build a
large-scale manufacturing center at the Triangle Innovation Point megasite in North Carolina’s
Chatham County. Pre-construction work for phase 1 of the factory commenced in the third quarter of
2022, with commissioning targeted for 2025. Phase 1 of the facility is expected to have an initial
capacity of 150,000 vehicles per year, with the site, layout and infrastructure of the facility designed to
accommodate further capacity expansion to around 250,000 vehicles per year upon completion of phase
2. We believe this facility will help diversify our manufacturing footprint in a critical growth market
where we plan to expand and take advantage of applicable state and local incentives. We plan to
continue to manufacture our vehicles in Vietnam and export them to the U.S. to fill U.S. orders until
our North Carolina facility commences production and meets our U.S. volume requirements. In
addition, we plan to continue improving the efficiency of our manufacturing process with the
implementation of additional automated technology throughout the entire manufacturing value chain,
which we believe is already conforming to Industry 4.0 standards of interconnectivity, automation,
machine-learning and real-time data processing incorporation.
Broaden Our Ancillary Revenue Streams: Our vehicles’ built-in features provide a large opportunity
for ancillary revenue streams in the future. We envision the following potential ancillary revenue
streams in addition to our primary revenue focus on vehicle and aftermarket sales: licensing of higher-
tech autonomy features, licensing the use of advanced infotainment and data sharing features, VinFast
Service program, vehicle financing and subscription services through our infotainment platform. From
a data collection perspective, we see a large opportunity to develop increased features and
functionalities by sharing our collective intelligence with partners as well.
Drive Intelligent Growth through Organic and Inorganic Opportunities: We plan to pursue
potential organic and inorganic growth opportunities which align with our business strategy.
We plan to put capital to work to grow in new organic channels, including broadening and
improving upon our current portfolio offering (such as potential supplier integration and
additional vehicle segments). We plan to also explore potential avenues of inorganic growth in
furtherance of the mission of Smart Mobility. To date, we and our affiliates have made
investments in early-stage technology companies that could be additive to our platform in the
future, including: StoreDot, which plans to manufacture extremely fast charging lithium-ion
battery cells; ProLogium, which is developing solid-state battery cells; and Autobrains, a
developer of AI for autonomous driving. We look forward to the possibility of building
relationships with other companies that share our entrepreneurial, innovative spirit and plan to
continue making relevant investments to expand the VinFast ecosystem by bringing strategic
partners together with meaningful capital.
Continue to Promote and Invest in our ESG Framework: As we continue to expand in new
global markets, we acknowledge global warming and climate related risks. As a company, we
are resiliently pursuing zero-emission vehicles both through innovation and sustainability. We
have declared our commitment to sustainability as a signer of the COP26 ZEV declaration and
The Climate Pledge. Recognizing the need for green and clean energy, we ceased production
of ICE vehicles in early November 2022 and converted our manufacturing entirely to EV
vehicles in line with our journey to reduce our carbon footprint and pursue environmental
stewardship. Apart from the inherent environmental benefits of our product line, we plan to
strategically collaborate with VinES to operate a battery recycling program in the pursuit of
achieving zero waste to landfill. We conduct social outreach programs in the communities
where we operate in support of local enterprises and social economic upliftment and for our
employees and stakeholders, as a key component of our operations. From a governance
perspective, we continue to serve the best interests of our shareholders through a balanced
board of directors with a focus on diversity, equity and inclusion in our leadership and
complying with the latest index and regulatory requirements. We expect promoting this ESG
framework will generate recognition for our brand, while also promoting a well-rounded and
inclusive environment that we expect will be attractive to current and future VinFast
stakeholders.

The VinFast Go-To-Market Strategy

Putting our customers at the center of everything we do, we plan to employ a multi-channel model in
our global rollout. We aim to deliver a best-in-class digital customer journey and seamless experience
across our digital platforms along with strategically located brick-and-mortar showrooms in our key
target markets outside of Vietnam.

Our approach is to integrate a digital, online opportunity to experience and customize the vehicles and
then to support that interaction with the option to interact directly with the vehicles in brick-and-mortar
showrooms, as well as through test drives and other customer touch-points. Our vehicles are easy to
find, incorporating search engine optimization to our targeted audience. We offer 360 degree car
configurations to customize vehicles online and in-store and compare models through our “build and
price” feature. Customers will create online profiles to enable preferences and a personalized sales
approach.
The entire seamless and personalized O2O process will continue to expand into the delivery, after-sales
services and maintenance of the VinFast ownership experience. The unique VinFast ID for each
customer will connect and synchronize their engagement data with the brand on all the channels:
website, companion app and physical showrooms.

Our in-person experience is and will be encapsulated by our self-owned offline distribution network,
including strategically located showrooms with after-sales services and capabilities. We utilize three
different showroom variations, depending on the location and size of our space. We think it is important
for our drivers to have a tangible location to not only purchase our vehicles, but also gather and interact
in the context of our overall VinFast ecosystem.

In each market where we have showrooms, we also plan to utilize third-party dealers in order to broaden
our distribution model to reach a greater number of potential customers. We expect the majority of sales
in our initial rollout would be through our multi-channel direct sales model, including all of our sales
in Vietnam and the U.S. through the date of the proxy statement/prospectus. We envision indirect sales
through dealers increasing in the medium to long-term.

We utilize an experiential marketing strategy that places customers at the core of all marketing touch
points and provides them with an authentic brand experience that creates a trusting and emotional
connection with us. Our experiential marketing initiatives include showcasing our vehicles at major
industry events (e.g., auto shows and technology conferences), hosted events (e.g., factory visits,
showcase tours in major cities and VinFast showroom openings), through digital experience platforms
(e.g., website car configuration) and through social media. We reward customer loyalty through
promotional campaigns for pioneers. We create trust in our brand through brand evangelists, such as
media influencers, key opinion leaders and existing customers who have enjoyed their journey with
VinFast.
Our reservation program for our VF e34, VF 5, VF 8, and VF 9 in Vietnam and VF 8 and VF 9 in
international markets requires customers to place a small reservation fee with their reservation. Each
reservation fee is cancellable and fully refundable without penalty until the customer enters into a sale
and purchase agreement for the vehicle they select, following which the reservation is converted into a
firm order.

As of June 30, 2023, we had 90 showrooms in Vietnam under our hybrid sales model, where we use
both a D2C approach with our own showrooms as well as through dealers.
Strategic Partnerships

As part of our business strategy, we identify and enter into strategic partnerships with top-tier business
partners that possess expertise in areas that complement our business. To ensure that our resources are
optimally allocated, we choose partners that can offer greater benefits than if we were to invest in such
capabilities ourselves.

We have entered into a consultancy service agreement with VinES, a subsidiary of Vingroup, to
leverage VinES’ expertise and specialization across the full spectrum of battery R&D, manufacturing,
testing, performance, cost optimization and recycling. See “Certain Relationships and Related Party
Transactions — Certain Relationships and Related Party Transactions — VinFast — Transactions with
Vingroup Affiliates—Agreements with VinES Relating to the Battery Business.” We have partnered
with top-tier global companies, including Magna, Tata Technologies and Pininfarina to accelerate the
integration of best practices into our processes. We entered into a consultancy services agreement with
Magna dated December 30, 2017, pursuant to which Magna agreed to support us in the conceptual and
technical development of our ICE vehicles between January 1, 2018, to December 31, 2019 for a fixed
service fee. On July 26, 2019, we amended the consultancy services agreement with Magna to provide
additional engineering services relating to the implementation of a V8 engine and vehicle elongation
for our LUX SA model for an additional fixed fee. On August 26, 2021, we entered into an engineering
services agreement with Magna Steyr Automotive Technology (Shanghai) Ltd. for engineering
development services relating to our EVs in exchange for a fixed fee. The agreement was amended on
September 24, 2021, to expand the scope of work to cover lightweight competitive level evaluation,
weight tracking in the design phase and support weight homologation for an additional fee. On
December 12, 2022, we entered into an addendum pursuant to which the term of the engineering
services agreement has been extended to March 31, 2023. In addition, we entered into an agreement
with Pininfarina dated April 12, 2022, for Pininfarina to review and advise us on the standards and
design of our showrooms and stores. The agreement does not have a fixed termination date but may be
terminated by either party upon written notice. Pininfarina is also our primary design partner to ensure
each of our vehicles offers a distinctive style.

Share Commitment to Our Environment, Society and Governance

Our ESG Strategy

VinFast’s commitment to ESG initiatives is institutionalized through a thoughtful and forward-looking

ESG strategy. We seek to adopt industry leading practices to reduce our carbon footprint and target
best-in-class environmental standards. As we believe that our business can be a key part of the charge
to a brighter, greener and safer future, we leverage ESG policies as key catalysts for achieving our
vision. Our environmental and social policies reflect our commitment to our customers, employees and
communities, while our governance structure reflects our core values of fairness, efficiency,
accountability and transparency.
Additionally, we recognize the importance of measuring and monitoring the resources that are
consumed through the lifecycle of our products. As part of our commitment to transparency we will
begin reporting our sustainability information under the automotive framework of the Value Reporting
Foundation (formerly the Sustainability Accounting Standards Board) and will carefully consider the
changing regulatory frameworks and best practices on ESG reporting requirements, including any
reporting requirements regarding climate-related matters and consideration of the provision of climate-
related risks and opportunities consistent with the Task Force on Climate-related Financial Disclosures.
VinFast is committed to contributing to the climate solution and seeks to be a leader in green business
practices.

We seek to periodically validate our progress in honoring our ESG commitment and to identify areas
for improvement. As part of this effort, in 2022, we engaged Morningstar Sustainalytics to perform a
broad-based Corporate ESG Assessment of our company covering seven distinct ESG categories:
carbon – product and services; human capital; product governance; business ethics; carbon-own
operations; human rights – supply chain; and corporate governance. We received an overall indicative
Corporate ESG Assessment score of 23.3, which places us in the “medium risk” category as of July
2022. Our indicative score would place us in the top 10 (9th ranked out of 72) of automobile companies
and having the top ESG rating (lowest potential risk) compared with other pure EV car companies, in
each case among companies assessed by Sustainalytics. In June 2023, we received gold medals in the
categories of “Best ESG in Vietnam” and “Best Diversity, Equity and Inclusion in Vietnam” at the 2023
FinanceAsia Awards.

Environmental

VinFast believes that an environmentally sustainable business model creates long-term value for our
shareholders as well as all our stakeholders, suppliers, policymakers and our customers. Environmental
sustainability is helping inform our decision making and is helping drive our transition from being a
manufacturer of ICE vehicles to a pure play electric mobility company focusing on EVs. This transition
allows us to be hyper-focused on endeavoring to deliver next generation transportation that can have a
positive impact on the environment and the societies we interact with.

We place great emphasis on energy conservation and carbon reduction policies in our production
process as a means to play our part in the global effort towards mitigating the impacts of climate change.
In 2021, we reduced our Scope 1 and 2 greenhouse gas (“GHG”) emissions by 29% when compared to
2019. In addition, various measures have been taken in the VinFast factory—such as using entirely LED
lighting and installing timers for outdoor and landscape lighting—to help reduce energy consumption.
The factory also takes advantage of thermal inertia to adjust the switch-on / switch-off time of paint
cure ovens and liquid-based cooling systems at the end of each work shift. In our ongoing operations,
we aim to raise staff awareness on environmental protection measures, address climate change, and
manage waste treatment systems at our facilities. These steps help support our efforts to reduce our
carbon footprint and to target best in class environmental standards that seek to minimize energy use
and moderate water consumption.

We are cognizant of emissions throughout the lifecycle of our product and have various initiatives to
help us monitor them. One of the ways is through our strategic partnership with VinES, a subsidiary of
Vingroup. VinES is not only the supplier of batteries in our vehicles, but also a sustainable energy
solution provider. We seek to promote the ethical handling of batteries at the end of their useful life,
and VinES plan to assist with the recycling or repurpose of EV batteries.

We target leading industry practices in our manufacturing process, by looking to limit the impact of
waste and placing strict controls on waste treatment processes and systems. For instance, we have
installed exhaust filters and heat circulation systems to control the release of pollutants from our
operations. Additionally, we have put in place a centralized wastewater treatment system at our
automotive paint shop, coupled with a non-water and non-chemicals-based paint separation system, in
an effort to minimize effluent discharge into the environment. We are committed to each of our projects
complying with International Finance Corporation Performance Standards for environmental and social
sustainability and continue to promote the effective use of our limited natural resources.

VinFast remains committed to supporting environmental stewardship in Vietnam through research into
new technologies that can further our offering of Vietnamese-branded electric cars, scooters and buses
in the future. As we scale our business further, we believe we are well-positioned to leverage the
environmental policies in place to build a sustainable business that contributes to the transition of the
world to a low-carbon future.

EFE MATRIX, IFE MATRIX. SWOT MATRIX AND EVELOPMENT

STRATERY
The total scores of the EFE and IFE matrices are 3 and 2.85 respectively. These scores indicate that
VinFast is above average, with the company operating quite well. Internally, the company has notable
strengths compared to competitors in the industry. However, if VinFast can develop a strategy to
maximize opportunities and effectively address threats further, it will grow even stronger not only in
the domestic market but also in the global market.

Strengths (S) Weaknesses (W)

1. Positive brand image; 1. Pressure working environment;

2. Solid financial resources; 2. Inability to do their own research and
3. Dense distribution network; production, depending on the technology
4. Stable human resources; of sourcing;
5. High level of conformity - Quality 3. The list price of the product is high
Management; compared to cars in the same segment
6. Product prices are suitable for customer and the loss due to selling cars below
segments; cost;
7. The product lines are trendy, receiving 4. Significant additional capital is needed to
high support from Vietnamese users in support business growth.
the context of the strongest increase in
domestic consumption in Southeast Asia;
8. Breakthrough marketing strategy helps
VinFast lead 3 automotive segments;
9. Electric vehicle charging stations or
related infrastructure.

Opportunities (O) Threats (T)

1. The potential of the domestic automobile

 market; 1. Compete with well-known automakers in
2. Government Policy; the market;
3. The domestic economy developed; 2. The automobile auxiliary industry in
4. Consumer tastes for the need to buy cars; Vietnam is not yet developed;
5. Vinfast's technological advancement; 3. There are no policies and laws that
6. Environmental protection issues; support the development of electric cars
7. Industrial Revolution 5.0; as much as foreign countries;
8. Fuel prices: Gas prices rise, EV battery 4. Difficulties in accessing the world
prices decrease. market;
5. Risks associated with driving
technology.

S-O Strategy (Strengths combined with Opportunities)

1. (S 6,7 - O 1,2,3,4,5,6): Focus on the domestic market and focus on upgrading product
quality

In recent years, the whole world is concerned about environmental issues and the electric vehicle
market has become more and more exciting, promising the future of "usurping" traditional cars.
In Vietnam, VinFast is absolutely dominant in the electric car industry as a monopoly on the
electric car market. Currently, the company's first electric cars are receiving positive feedback
and record high order numbers.

Besides, our government also has many ways to support the automobile industry and due to the
improvement of infrastructure, people's incomes have increased, so the purchasing power of cars
has increased sharply in recent years. Taking advantage of these opportunities, VinFast should
continue to promote production and promotion of its new electric cars. In addition, the company
should also focus on upgrading technology, product quality and have reasonable customer
policies. Some new technologies such as self-driving electric cars or the US strategy should also
be promoted to reinforce the belief that the first Vietnamese automobile company is mindful,
sufficient, not inferior in technology to the world's leading automakers. With the mentality of
Vietnamese people using Vietnamese goods and concern for the environment, customers will
increasingly tend to be interested in electric cars produced directly in the country with competitive
prices.

2. (S 2,3 - O 2,5): Developing electric car-ready infrastructure in tandem with developing

home charging equipment
A major issue that influences consumers' decision to buy an electric car is the recharging of the
vehicle's fuel. Vinfast needs to ensure that car owners have access to electricity and can charge
their cars anytime, anywhere easily, just like refueling their cars in the present.

With the advantage of available financial resources and infrastructure, Vingroup can completely
turn Winmart+ convenience stores or parking garages in Vincom buildings into electric vehicle
charging points. The company will need to redesign those locations to install more charging
stations, especially in parking garages where there are many cars at the same time and car owners
can take advantage of parking time to charge their cars.

In addition, to ensure the coverage of electric car charging stations is 100% in the shortest time,
bringing charging stations to both highway or rural areas (where Vinmart+ stores or Vincom
shopping centers are not present), Vinfast should consider renting space from large petroleum
companies such as Vietnam Petrolimex Group to install the charging station. At the same time,
the company should propose to the Government preferential policies on the rental price of space
for installing charging stations and electricity prices for charging vehicles. Vinfast's main partners
will be Vietnam Electricity (EVN) and Vietnam Petrolimex Group, ensuring 100% coverage in
63/63 provinces and cities of Vietnam.

The expansion of the charging station system across the country should be carried out in parallel
with the development of home charging equipment. Currently, Vinfast plans to sell two types of
chargers for car owners to charge their cars at home. The standard charger directly connects the
charging system to the 220V AC grid, providing a power range of 0.7kW – 19.2kW.

The fast charger is indirectly connected to the 220V grid via a rectifier transformer. This device
will turn alternating current into 1-way current and sharply increase the voltage delivered,
speeding up the charging process (capacity from 80kW – 400kW). Charging time from 20% to
100% of the battery is expected to be 10 hours. This charging time is still long, which will cause
inconvenience to car owners when they cannot find a charging station and have to rely on the
power of surrounding households. However, it can overcome that weakness through
technological innovations developed by itself or its strategic partners.

3. (S 2,3,4,5 - O 1,2,4,5): Expand production and business scale

VinFast has substantial financial resources and a quality personnel network from its parent company,
Vingroup. Therefore, to boost revenue and market coverage of electric vehicles in the future, VinFast
should focus on expanding the scale of production and business of electric cars in particular, as well as
other electric vehicle models in general. The dense distribution network spread throughout, along with
the integrated online and offline sales model, will be an advantage in quickly promoting and selling
electric vehicle models.

Moreover, VinFast is currently gaining favor among consumers in the electric vehicle segment, evident
in the increasing number of parents interested in purchasing VinFast electric motorcycles and bicycles
for their children. Additionally, the company should continue to ensure product quality and keep up
with trends and new technologies such as fast charging technology, environmentally friendly batteries,
especially since VinFast has signed contracts with many major players in the electric vehicle
manufacturing industry. The company should also invest more in test-driving new models and gathering
feedback from customers about existing models to plan for improvements and appropriate adjustments.
4. (S 1, 8 - O 4, 6): Widespread communication, using the image of influencers marketing
When launching in the Vietnamese market, VinFast had a successful marketing campaign that increased
its brand recognition to 80%, creating excitement and anticipation among domestic consumers for
VinFast's debut in their homeland. Therefore, with the introduction of VinFast electric cars, the
company can continue to apply a similar marketing campaign.

The slogan "Vietnamese spirit of strength" along with advertising content should continue to appeal to
the national spirit of consumers, encouraging Vietnamese people to use Vietnamese products. However,
with the launch of VinFast electric cars, Vietnam will become the first Southeast Asian country to
produce electric cars domestically. The product is not only a source of pride for a company but also
carries the pride of the nation on the international stage. That Vietnamese pride is easily spread,
enhancing the effectiveness of the marketing campaign.

With the financial resources and reputation already available, VinFast can easily invite many celebrities
to participate in media events and become the faces of this marketing campaign. The difference here is
that instead of building trust in domestic products as in previous marketing campaigns, influencers will
guide consumers (especially the middle class) towards the trend of green living and environmental
protection. The appearance of A-list celebrities alongside VinFast electric cars creates a sense of luxury
while still maintaining environmental friendliness. This perception will gradually change the consumer
mindset in Vietnam, making VinFast electric cars the first choice for consumers when they want to buy
a luxury car, instead of electric cars from other giants like Tesla, Mitsubishi, Volkswagen, or luxury
cars from Mercedes, Ferrari, Rolls-Royce.

5. (S 2,3 - O 7): Take advantage of the industrial revolution 4.0 in promotion and sales
Currently, Industry 4.0 technology has developed extensively across various fields: education,
technology, science, etc. Therefore, VinFast should also grasp the trend and integrate digital
transformation into every aspect of the automotive manufacturing industry. For example, in sales,
the company can integrate virtual reality driving experiences for customers at showrooms or
consider transitioning to fully online sales to save costs, delivering cars to users using smart
devices. This not only helps optimize processes but also stimulates customers due to the novelty,
convenience, and cost savings.

In addition, when operating online sales channels, the company should invest more in customer
service, allocate staff to be available on websites or hotline for direct consultation, integrate
automated technology to suggest questions for users, and avoid situations where customers have
queries but are not promptly answered, leading to misunderstandings about the product.

S-T Strategy (Strengths combined with Threats)

1. S (1,2,3,7) - T (1,3,4) : Competitive strategy with domestic and international market

competitors

In recent years, the Vietnamese automaker VinFast has gradually affirmed its position and reputation
in the domestic car market and is soon moving towards the international market. From specific figures
on car sales as well as revenue and profit after 2 years since the first Vietnamese-branded cars hit the
roads in all three regions of the country, we can see that VinFast has not only gained the trust of a large
number of domestic consumers but has also begun to take firm steps towards international expansion.

However, alongside this development, VinFast still faces the pressure of solving the challenge of
barriers from well-established car brands, both domestically and internationally. For the domestic
market, some famous car brands that have become familiar to Vietnamese consumers include Toyota,
Hyundai, KIA, among others. On the path to conquering foreign markets, especially the recent entry
into the US electric car market, VinFast will have to compete with formidable competitors such as
Tesla, Volkswagen, Audi E-Tron, Mercedes-Benz, in the same segment.

Moreover, statistical figures over each period have proven and clearly shown the trend of Vietnamese
consumers' preference for foreign car brands (Japanese, Korean, etc.). This has created significant
challenges for VinFast in the race for car sales in the domestic market. Therefore, aiming to minimize
the impact of the trend of purchasing foreign brands as well as reducing the competitive pressure with
well-experienced and reputable car brands in the domestic market, VinFast needs to strongly emphasize
the "National pride" mentality - the pride of the nation when for the first time, a Vietnamese-branded
car, owned and produced in Vietnam (made in Vietnam), is introduced at a prestigious international
exhibition like the Paris Motor Show, along with the message "Protect the environment, improve air
quality." Environmental pollution and declining air quality have become global issues in recent years.
The standout feature of VinFast electric cars is their electric motor, which contributes to minimizing
environmental pollution. In the production process, the company also proactively invests in battery
processing and recycling lines to protect the environment. It can be seen that the application of modern
and environmentally friendly production technology by VinFast is entirely in line with the country's
direction of green growth and sustainable development. Through advertising campaigns,
communications, or on its website, the company can bring this slogan closer to the Vietnamese people
and convey the meaningful message with global influence on an increasingly wide scale.

On the path to "attacking" the electric car market in Europe, where the green lifestyle originated with
the mindset and culture of green living, bringing strong potential for the development of the electric car
market in the future, VinFast will need to balance the mentality and criteria for choosing cars of
European consumers with the price, features that the car line will introduce while still ensuring to meet
the customers' desires for trendy design, integration of many features, and superior performance.
Accordingly, the company can initially conquer the demanding European market by offering policies
and providing customer care services that always prioritize customer benefits. Specifically,
implementing periodic battery warranty services and replacing new batteries when the battery life is
below the safety threshold will provide customers with rights, peace of mind, and high trust throughout
the usage process.

2. S (4,5,7,8) - T (3,4): Strategies to expand domestic and foreign markets

With its system of shopping centers and the real estate advantage of VinGroup, VinFast receives
significant support in terms of promotion and direct product display to consumers. However, the
demand for electric cars in Vietnam is currently not high due to various factors such as infrastructure,
price, consumer preferences, and consumer prejudices about electric vehicles. This has led to relatively
low sales of electric cars in Vietnam (According to statistics from the Vietnam Register, the number of
electric vehicles in Vietnam is still very small, with 140 electric vehicles in 2019, increasing to 900 in
2020, and 600 in Q1 2021). This means that the domestic electric car market is not large enough and
not yet truly promising for VinFast. Therefore, VinFast aims for a more potential and open market,
which is the European market, where there is a high demand for electric cars, and infrastructure such as
electric vehicle charging stations, technical support, etc., has been provided. VinFast's first step into
these major markets was its appearance at the Los Angeles Auto Show 2021, setting up offices in Europe
and North America, and planning to launch products in these two regions. With high-quality products
meeting international standards, VinFast can penetrate the global market and become a promising new
electric car brand in Europe and North America. Not stopping at setting up offices and opening
showrooms in these markets, VinFast needs to continue to strengthen its marketing strategy to bring its
brand closer to consumers in the US and Europe. Thanks to its marketing strength, VinFast has the
capability to establish appropriate policies to take VinFast further.
For the domestic market, consumers are gradually shifting towards green living and also considering
electric vehicle products. Therefore, to boost sales in the Vietnamese market, VinFast needs to invest
more in infrastructure such as charging stations for electric vehicles. Furthermore, raising consumer
awareness through marketing strategies focused on environmental protection, fuel savings, and always
associating with national identity can attract attention and increase demand for electric vehicles in the
domestic market. In addition, VinFast can offer support packages for Vinhomes residents, who are loyal
customers of VinGroup and use a variety of services from the corporation such as healthcare, tourism,
shopping, etc. By leveraging its dense network of showrooms and dealerships, VinFast can reinforce
the convenience of providing maintenance services, battery replacement, and charging for its electric
vehicle line. If electric cars are still a product that is not yet familiar to domestic consumers, VinFast's
electric motorcycles are currently very popular. By capitalizing on this preference, VinFast can offer
many incentives specifically for customers who own VinFast electric motorcycles. In this way, sales of
electric motorcycles and electric cars can be increased.
3. S (1, 2, 7, 8) - T (3) : The strategy to persuade, build the confidence of domestic
consumers about the outstanding characteristics of electric cars

Abandoning the long-standing habit of using gasoline-powered cars in the domestic market has posed
a challenge for VinFast's VF E34 - VinFast's first mainstream electric car, and the Vietnamese
automobile market as a whole. The challenge requires convincing customers to temporarily forget about
traditional gasoline and diesel engine cars and accept something new, more modern: electric cars.

In addition to the notable features of electric cars such as reducing environmental pollution, noise
pollution in large cities affecting human health and air quality, stable operation, superior safety features,
and reduced risk of fire and explosions, there are also economic and psychological factors that VinFast
should delve deeper into and promote more vigorously in its communication activities. Buying an
electric car truly provides the most intelligent budget-saving solution.

Low operating and maintenance costs are one of the factors that make electric cars attractive. Electric
motors do not require lubricating oil like gasoline or diesel engines, so there is no need for frequent
maintenance (oil changes). Furthermore, electric motors react immediately after each acceleration and
automatically "brake" when the driver releases the accelerator pedal. Therefore, the brake pads on
electric cars do not wear out as quickly as those on gasoline or diesel cars, reducing replacement costs.
According to numerous studies by organizations worldwide, the maintenance costs of electric cars are
only equivalent to 25-30% of those using internal combustion engines.
Moreover, saving fuel costs is also a prominent advantage when choosing an electric car. Based on the
fact that gasoline and diesel prices fluctuate unpredictably, using an electric car is a sensible choice. In
reality, electricity prices tend to be more stable, and this energy source can be actively regenerated.

Therefore, VinFast can highlight the outstanding features of its electric car line and convey them to
domestic consumers through promotional campaigns, media coordination with advertising production
units for TV commercials or short product introduction videos, clearly demonstrating the superior smart
saving solution of electric cars compared to traditional gasoline and diesel cars. This will prove that
choosing to buy an electric car is a wise decision and gradually build customer trust in the first
automobile brand in Vietnam.

W-O Strategy (Weaknesses combined with Opportunities)

1. W2 + O1, O2, O3: Strategies to improve production capacity

Keeping up with the trend of digital transformation from the Fourth Industrial Revolution, senior
management of the company needs to focus on R&D to research and explore manufacturing
technologies to develop products and meet the increasing demands for high design aesthetics from
customers. Investing in manufacturing technology such as machinery, production lines, advanced
technology, etc., instead of investing scatteredly in other industries, is an effective measure to improve
product designs and optimize production processes. Not only impacting the products, but engineering
and technology will also change the structure of the value chain, from design, manufacturing,
operations, and services to changes in manufacturing technology trends. With the assistance of
advanced machinery or specialized manufacturing technologies, not only will the products be
significantly improved, but also manual processes for factory workers will be reduced. With just one
investment like this, the benefits are twofold: improving product quality and saving costs on hiring
labor. Moreover, robot machinery often has longer durability than human labor, and the production
efficiency of technology will far exceed that of manual labor.

2. W3 + O4: Brand positioning strategy

The success of VinFast's marketing campaign, which integrates national elements into its products, is
undeniable. However, in addition to this, VinFast needs to expand its strategies further to position its
products. With numerous opportunities in potential markets such as a large population leading to high
demand for transportation, increasing GDP, and per capita income trends, consumers are inclined
towards products of good quality and appealing aesthetics. Moreover, the government's efforts to
protect intellectual property rights and product quality provide consumers with more confidence and
strengthen their loyalty to domestic brands. To keep up with modern marketing trends, VinFast needs
to embrace new trends such as rap, underground culture, and align with customer preferences,
demonstrating the brand's sophistication and commitment to accompany customers in every aspect of
life. This approach will not only solidify the brand's image but also attract new potential customers.
3. W2, W3 + O5, O6: Product improvement strategy
The scarcity of input materials in various industries, especially the automotive industry, is
always a significant concern. Take VinFast, for example, statistics show that up to 60% of raw
materials are imported, while only 40% are sourced domestically. In the current complex
situation of the Covid-19 pandemic, people's economic conditions have become more difficult,
leading to a tendency to spend more frugally. What the company needs to do most is to find
new, cheaper materials while still ensuring the quality of the product, making every effort to
reduce production costs in order to lower the price of the product.\

W-T Strategy (Weaknesses combined with Threats)

1. Training engineers and experts for research and production of electric cars

The majority of the components of electric vehicles are similar to traditional vehicles; however, there
are some special parts that are unique to electric vehicles such as Li-ion batteries and electric motors.
Therefore, engineers, despite having many years of experience in the automotive industry, may
encounter difficulties when participating in the production of electric vehicles if they are accustomed
to working with traditional vehicles. Additionally, electric vehicles also open up many new job
opportunities in positions such as research and development of autonomous driving, intelligent cockpit
design, software engineering, sales, user experience, etc.

Given the different demands for manpower, along with the aim of enhancing domestic research
capabilities to compete with major rivals in the global market, VinFast needs to quickly implement a
strategy to train engineers and experts in the electric vehicle manufacturing industry. VinFast can
simultaneously develop this strategy in two directions: training experienced engineers and attracting
talent from domestic universities. For experienced engineers in traditional vehicle manufacturing but
lacking expertise in electric vehicle production, VinFast needs to organize supplementary training
during their work, sponsor scholarships for further education in electric vehicle technology at domestic
and foreign universities. For talented individuals at universities, VinFast can organize or sponsor
technical innovation competitions related to engineering and information technology fields, collaborate
with universities in seminars, workshops, career counseling sessions regarding opportunities and jobs
related to research and production of electric vehicles, and sponsor scholarships for outstanding students
in the field.

Currently, VinFast has partnered with 5 colleges and built the VinFast Training Center in Hai Phong.
Trainees not only have access to and practice with advanced technical machinery to German standards
but also receive financial support and guaranteed employment (Thai Tra, 2020). However, to train a
professional workforce and industry experts, VinFast needs a stronger strategy to attract and nurture
talent.

2. Investment in domestic production of automobile components

VinFast needs to invest in establishing automotive parts production lines to increase the localization
ratio of electric vehicles, thereby reducing production costs and product prices. To implement this
strategy, VinFast can invest in two directions: either build and operate its own factories, or acquire and
merge with existing automotive component manufacturing plants on the market.

In 2019, VinFast inaugurated its automotive manufacturing plant in Cat Hai, Hai Phong, after 21 months
of construction. So far, VinFast has domestically produced 15 vehicle components specifically for
VinFast vehicles, but mainly related to the body and chassis; important components such as engines,
gearboxes, drivetrains, safety, and electronic systems are still not domestically produced (Doan Dung,
2021). Therefore, in the future, VinFast needs to focus on investing in the production of these crucial
components for electric vehicles to be able to master its technology, while significantly increasing the
localization ratio of electric vehicles compared to body and chassis parts.

A huge financial source is an indispensable condition for implementing this strategy. Therefore, in the
initial stage of electric vehicle production and sales, VinFast may have to accept significant losses and
rely on support from Vingroup. At the same time, early deposits for electric vehicles from buyers could
also become a source of financial support for these production activities.

3. Implement battery rental to reduce the cost of electric cars

The battery rental policy implemented by VinFast is an effective strategy that helps consumers save
costs when purchasing electric vehicles. According to VinFast's calculations, the total cost of battery
rental and electricity charging is 1,482 VND per kilometer, equivalent to the cost of fuel per kilometer
traveled (VinFast, 2021). This is a very attractive strategy for consumers who want to own an electric
vehicle but cannot afford to purchase the battery outright. Additionally, this policy shifts the risk of
battery quality and lifespan towards VinFast. To minimize the risks that VinFast may face, it is
necessary to provide specific documentation, videos, and a customer service team to provide guidance
and advice on how to charge to ensure the quality of usage and prolong the lifespan of the battery.

4. Apply new technologies or advanced technologies from partners

As mentioned in the previous sections, VinFast's three vehicle lines have not undergone any significant
upgrades over the past two years, and their listed prices are higher than those of similar models in the
market, requiring frequent deep discounts to compete in sales. If we consider the battery as a crucial
component of electric vehicles, Vingroup should invest more in adopting cutting-edge technologies
currently available or modern technologies developed by collaborative partners. This strategy will result
in a variety of batteries suitable for the needs of each electric vehicle line, enhancing the stability of
VinFast's current vehicle models. Following the success of major automakers such as Tesla, BMW,
Volkswagen, who are all collaborating with Chinese partners—considered the world's largest "battery
valley"—could be a reasonable direction for VinFast Corporation, contributing to further advancement
of VinFast's vehicle lines in the future.

5. Development of charging station system

One of the challenges of electric vehicles in Vietnam is the lack of charging infrastructure. Currently,
there are hardly any charging stations for electric cars in Vietnam, and there is a shortage of road
infrastructure, parking spots, and land reserves for setting up charging stations for electric vehicles.
Developing a nationwide charging station system will contribute to expanding the operational scope
and flexibility of VinFast electric vehicles. Therefore, VinFast needs to propose suggestions to the
government regarding the construction of infrastructure to serve electric vehicles in the future.
However, building a charging station system poses a significant challenge for the national electricity
grid: regional grid overload. Therefore, in the process of developing the charging station system,
VinFast also needs to consider two technological solutions to address this issue that some countries
have researched and applied: Smart Charging and Vehicle-to-Grid (V2G). Smart Charging uses
algorithms and integrates with the transmission line to shift the charging time to periods of lower
demand, when electricity prices are cheaper; Vehicle-to-Grid technology, at a certain level of power,
allows its batteries to supply power back to the grid when needed (Vo Quang Lam, 2021). VinFast can
also refer to the current charging station models in developed countries with high demand for electric
vehicles, where stations and outdoor parking lots at offices, workplaces, or shopping centers integrate
solar panels to utilize clean energy and reduce electricity consumption from the grid.
Furthermore, to build a charging station system with lower costs, VinFast should also consider
collaborating with other car manufacturers, using the same electric charging technology, charging
sockets, and sharing the charging station network.
BUSINESS STRATERY:
Overcoming consumers' concerns about electric cars from a Vietnamese car company
Gasoline and diesel lead in terms of drives in the primarily used car

In the Vietnamese market, consumers still hesitate when deciding to purchase and experience a
completely new type of vehicle: domestically-produced electric cars. This obstacle accounts for a
significant portion of the EFE matrix with an average weight of 0.8. The reason for this comes from the
prejudice against domestic products because Vietnam is not a strong country in terms of vehicle
technology. Additionally, there is a psychological barrier and a lack of information about electric cars.
This issue has been discussed in more detail in the macro analysis section.
According to the chart above, the top two reasons why Vietnamese people switch to electric cars are
the number of charging stations and environmental concerns. The top four reasons why Vietnamese
people do not buy electric cars are concerns about the scarcity of charging stations, long charging times,
battery depletion, and the durability of the vehicle.
1. Vinfast Promotes communication, provides information to consumers, and controls misleading
information Lack of knowledge and information is a factor that prevents consumers from
deciding to buy electric vehicles. In addition, on social networks there is too much false
information that makes people misunderstand about electric cars and be afraid to decide to buy
them. With a target customer base of people aged 25-45, Vinfast can have new sales and
marketing methods and be more flexible in information answering tasks such as livestreaming
and selling online on the platform. Tiktok, Shopee,...
2. Expand more charging stations in suburban areas VinFast charging station infrastructure covers
63 provinces, on 106 national highways and expressways, reaching a density of about 3.5 km
in 80 cities across the country. But the density of charging stations is still not much in rural and
suburban areas, which will be an obstacle for users when they drive to travel or return home.
3. Improved battery technology and fast charging technology Many drivers fear that charging the
battery takes too much time compared to refueling, which will be troublesome when they don't
have much time and the car runs out of battery. Continuously improving technology will help
consumers trust Vinfast more
4. Improving the performance of new energy hybrid vehicles
Although new energy hybrid vehicles have the advantage of energy saving and environmental
protection, their high annual maintenance cost becomes an important factor that hinders the
market sales volume. At present, many consumers are reluctant to purchase new energy hybrid
vehicles because of the high price and the subsequent maintenance costs are unaffordable. . If
the price of hybrid vehicles can be reduced to an affordable price, it may attract the interest of
people with positive attitude towards hybrid vehicles. Therefore, companies should actively
develop new technologies to reduce production costs, so that the price of new energy hybrid
cars down; establish an industry standard related to the development of plug-in hybrid electric
vehicles, so that their related components are common and accessories form a large-scale
production, thereby reducing vehicle prices; at the same time, the government should also
increase subsidies to further reduce the cost of new energy hybrid vehicles purchased by
consumers.
5. Encouraging green transportation as a lifestyle
Another solution that electric vehicle brands should consider is to emphasize the role of electric
vehicles as an icon of modern green living, aligning with trends and personal needs rather than
focusing solely on the technical features of the vehicles. This can be achieved by positioning
electric vehicles as a positive element in the lifestyle of leaders who want to develop Vietnam
into a cleaner, wealthier, and safer nation.
6. To achieve this, brands need to develop a strategy to make electric vehicles familiar in the
context of their usage as well as fitting with the culture and lifestyle of Vietnamese people.
Brands can advertise electric vehicle models in easily noticeable locations as users commute
within the city, travel with family, or engage in recreational activities. This helps consumers
perceive electric vehicles as practical, convenient, and suitable for their daily habits. Instead of
solely focusing on macro issues such as climate change, they can highlight how electric vehicles
help improve air quality in cleaner, more breathable urban areas – an issue that directly impacts
the daily lives of Vietnamese people. As infrastructure is completed, combined with broader
government support policies, consumers with average incomes will also have the opportunity
to access and use electric vehicles, even though initially the market is seen as catering
exclusively to high-end segments.
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