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VinFast's European help for automotive ambitions

By Dave Leggett | 13 December 2018

As VinFast sets a course to become the first indigenous Vietnamese automaker, it's also happy to partner with European companies and buy in expertise from companies such as BMW and Bosch, local reports say.

The Nikkei news agency reports that there is a significant presence of German engineers at company's sprawling factory in Haiphong, where it is planning to make new models from next year. The report notes that 'about 200 Germans can be seen performing inspections on robots upon entering the factory, with hardly any Vietnamese present'.

The report adds that the plant contains about 1,200 robots, mainly provided by Swiss engineering group ABB.

VinFast parent, conglomerate Vingroup, has requested comprehensive partnerships with about 20 mainly European companies, according to Nikkei - which mentions companies such as BMW, Bosch and Siemens.

The ambitious group has also launched an aggressive marketing campaign and VinFast recruited footballer David Beckham to unveil its new models at the Paris Motor Show in October.

However, analysts note that it will be reliant on bought in expertise in areas such as engineering and supply chain/procurement. They also say that Vietnam's automotive market is relatively small and underdeveloped, so a big challenge for the new OEM will be to develop overseas sales and raise scale for lower unit costs.

See also: VinFast selects Siemens for PLM software

Paris - Beckham promotes VinFast

Vietnamese car company to unveil models at Paris Show