In September 2022, VinFast of Vietnamese richest billionair Pham Nhat Vuong launched the President car model, priced at VND4.6 billion ($190,000). Mr. Vuong defines the segment for President as Lexus LX570, Mercedes GLS, or BMW X7. This was an extremely big ambition, because VinFast at that time was just a tiny baby challenging the giants.
President is a large SUV, still has 7 seats, but is equipped with a 6.2 V8 engine. In terms of design, it is still based on the Lux SA2.0 but refined and added some technological features.
In Vietnam, a car is not only a means of transportation, but also a way for people to show their “class.” Therefore, a great brand is not simply about driving feeling, safety, or luxury, but it is also about “class.” Meanwhile, an anonymous VinFast President cannot compare with the Lexus LX570, Mercedes GLS or BMW X7.
If Lexus, Mercedes or BMW please customers with quality, after-sales service, brand name, and luxury, then VinFast only brings to the market one thing, which is “patriotism” of customers.
However, people who buy VinFast President cars because of that “patriotism” are just a misunderstood kind of patriotism. When people realize that this patriotism does not help the country, but is just something for a business to take advantage of, then that advantage of VinFast will be blown away like a bubble with a hole in it.
According to an experienced car owner, currently, on the market, the 2021 Lexus LX570 costs about VND9 billion. If you buy used cars, the prices can range from VND6.5 billion to VND8 billion. That means a loss of value from about 15 to 25%. Other car manufacturers, such as Mercedes or BMW, can depreciate more, but not exceeds 30%, if they do not crash or get flooded.
Recently, beauty Ngo Thanh Van offered to sell her old VinFast President at VND 1.58 billion, down more than 3 billion compared to the price when she bought it new. The new purchase price is VND4.6 billion. The car has only traveled 25,000 km. With an ODO like this, people who buy cars look at the reviews and it seems like it’s still quite new. Yet, the beauty threw it away with a devaluation of up to 65%. Some people believe that the original price of VND4.6 billion was the combined price of “patriotic fees.” When patriotism fades, the value of the car will return to its true value.
Currently, VinFast has completely switched to electric vehicle production. Over the past year, the online community has exposed many of this company’s problems.
VinFast does not build its own core technology, but hires foreign companies, especially Chinese companies, to design in a “turnkey” format. When first launched, VinFast always advertised that VF e34 was designed by Pininfarina. But on this studio’s website there is absolutely no information about VF e34 or VF5.
Then, in the IPO filing of LongChuan company on the Shanghai floor, it was revealed that the contract to design and develop VF e34 and VF5 cars for VinFast was worth 133,396,200 yuan, equivalent to $18.37 million.
This is completely different from VinFast’s advertising.
To fulfill the contract with VinFast, LongChuan had to establish Top Design Company. VinFast also established Vinfast SCP Company to work with LongChuan’s Top Design. The establishment of these companies is probably to hide the Chinese origin of VFe34 and VF5.
In addition, LongChuan’s IPO filing also revealed that a number of Chinese companies participating in design and production for VF are Shanghai Yirui Automotive Technology Co., Ltd; Shenzhen Yin-bao-shan New Technology Co., Ltd.; Shenzhen Hua-yi-sheng Mold Co., Ltd.; Top Design; Shanghai Idida Automobile Technical Services Co., Ltd. These suppliers mainly provide auto parts, casting, testing, diagnostics and other services.
Order Chinese goods and bring them back with Vietnamese labels, then appeal to patriotism to sell. The values that VinFast creates are not real values, and the selling price of the “President” says it all.