VinFast, a pioneering Vietnamese electric vehicle (EV) manufacturer, has now set its sights on the electric vehicle market in the Middle East and also expanding into Asia and Africa. The Middle East with its growing environmental awareness and ambitions to diversify from fossil fuels, presents a particularly promising market for electric vehicles.

 

This is evident in the ambitious targets set by countries like the UAE, which aims to have 50% of its vehicles electric by 2050. Additionally, Saudi Arabia's investments in one American EV company further highlight the region's commitment to electric mobility.

 

The Middle East's young, affluent demographic also presents a lucrative market for VinFast's electric vehicles. Mordor Intelligence projects the region's EV market to experience a Compound Annual Growth Rate (CAGR) of 23.20% between 2024 and 2029, reaching $9.42 billion.

 

Partnerships in the region

VinFast has already begun making its moves in the region. In Oman, the company has partnered with Bahwan Automobiles Trading to distribute its electric vehicles. In the UAE, it has signed an exclusive dealership agreement with Al Tayer Motors. And more recently, VinFast has established a regional headquarters in Dubai.

 

VinFast's foray into the Middle East signifies a new chapter in the brand's global expansion and the region's shift toward sustainable transportation. Only time will tell if VinFast's Middle Eastern venture will replicate its domestic success, but the early signs are promising.

VinFast EV manufacturing complex in Hai Phong, Vietnam

 

VinFast's rapid ascend

VinFast owes its existence to the vision and ambition of Vietnam's richest man and Vingroup's founder, Pham Nhat Vuong. Known for his decisiveness, Vuong established the car company in 2017.

 

Following the launch of 3 gasoline models, VinFast made a bold move: it was going all electric. The company delivered its first EVs to Vietnamese customers in December 2021, a remarkable feat achieved in less than five years.

 

The motivation behind VinFast's lightning pace lies in Vuong's laser focus and strategic partnerships. Vingroup, with its vast and multi-faceted resources, leveraged its expertise in construction and real estate development to establish a nationwide network of charging stations. To accelerate development, VinFast partnered with some of the automotive world's heavyweights, including BMW and Pininfarina.

 

Journey to the west

Initial domestic success proved to be a mere stepping stone for VinFast.

 

In 2022, the first VinFast VF 8s arrived on North American shores. The following year, VinFast debuted on NASDAQ, becoming a publicly listed company. VinFast's bold foray into the US market "sends a message about Vietnam's rising profile in the global economy," writes one expert.--TradeArabia News Service