At a meeting with leaders of the Government, ministries and sectors in mid-May, Vingroup applied for a pilot exemption of excise tax and registration fee for electric cars for 5 years in order to promote the electric vehicle market. . In fact, this is the first proposal in Vietnam but not new in the world. Many countries have also applied a combination of supportive policies, strong incentives for consumers and manufacturers to encourage the model transition from gasoline to electricity, typically China, the US and other countries. Europe. According to the Wall Street Journal, Mr. Hallgeir Langeland, 65, a former Norwegian politician and environmental activist, has not owned a car in 25 years. But when Ford launched an all-electric version of the Mustang last year, he didn’t hesitate. “I have to have it. I can’t wait until March,” Mr. Langeland said, recalling the Mustang he drove as a young man. Christian Burg, owner of an energy-efficient housing construction business in Germany, has been driving a petrol BMW X3 SUV for many years. When the German government increased subsidies for electric cars, he applied for a small business subsidy and switched to the iX3 rechargeable hybrid. “We received an incentive of 3,750 euros ($4,500),” he revealed. Governments are tightening emissions standards and supporting industries on the front lines of the fight against climate change. Photo: Reuters. From electric vehicle powerhouses China and Europe… Governments around the globe have introduced a variety of policies to boost the electric vehicle industry over the years, including reducing taxes, fees, subsidies, incentives, and administrative regulations. The common point is that governments have set a specific roadmap to transition from fossil fuel vehicles to electric cars. According to the CNBC Many Chinese drivers switch to electric cars because of the government’s preferential policies. For example, in 2016, Chinese buyers received a nationwide discount of 55,000 yuan ($8,599.01) for each BEV and 30,000 yuan ($4,690) for PHEVs. Municipal governments also provide additional support up to 55,000 yuan. Beijing also subsidizes electric vehicle manufacturers based on battery power density, driving range and energy consumption. For example, in 2020, a pure electric vehicle with a minimum range of 300 km will receive a subsidy of 16,200-22,500 yuan (2,532-3,517 USD). Along with that, it supports the construction of a battery charging network for electric vehicles. For taxes and fees, China offers 50-100% reduction in user registration fees from time to time, annual tax relief, free or low-cost charging. In addition, manufacturers will receive credit points if they produce many electric vehicles. China is the leading electric vehicle market in the world. Photo: Reuters. Buyers of electric vehicles in China also receive preferential registration fees, no need to wait for car registration for 6-12 months, free highways, and parking. In Shenzhen alone, taxis switching to electric vehicles will be able to receive subsidies. A 27-year-old customer, who lives in Hangzhou, has been waiting almost a year for a license plate for his petrol car. However, after seeing Xpeng’s G3 electric car, she decided not to wait any longer. “After applying the government subsidy, the car fits my budget of about 180,000 yuan (US$27,643),” she said. The European Union (EU) is also gradually tightening emissions standards and supporting industries on the front lines in the fight against climate change. Much of the support goes to initiatives that push consumers to buy electric vehicles, which in turn drives demand. After applying the government subsidy, the car fits my budget of about 180,000 yuan (US$27,643) A 27-year-old customer in Hangzhou In 2020, sales of new electric vehicles in European countries doubled, accounting for 43% of global sales. Rising momentum has brought the EU over China to become the world’s largest electric vehicle market. For example, Germany subsidizes up to 4,000 euros ($4,874) per BEV and 3,000 euros ($3,656) for PHEVs. The country also built a €1 billion fund for rebates and building charging stations. Meanwhile, France subsidizes 6,000 euros ($7,312) for cars that emit less than 20g of CO2, 5,000 euros ($6,093) per BEV, and nearly 10,000 euros ($12,187.01) for customers who switch from diesel vehicles to BEVs. Similar to France and Germany, Spain, Italy, Sweden, Denmark and Finland also apply different subsidies to electric vehicle customers. Denmark alone reduces sales tax up to 80%. Some major Spanish cities reduce taxes by 75%, while Finland has a minimum tax rate. …to North America Transportation is currently America’s largest source of greenhouse gas emissions. Therefore, US President Joe Biden’s plan to change gasoline cars to electric cars is essential to solving the problems of climate change. Biden’s proposals include incentives of up to $174 billion for electric cars. His plan is to increase discounts for customers who buy electric cars. In addition, the US president plans to push to increase the number of public chargers from 72,000 in 2019 to 500,000 in 2030. He also called for replacing the US government’s fleet of about 650,000 vehicles with models. electricity. Experts of Bloomberg It is estimated that 500,000 chargers may require about 6 billion USD of investment. Part of the $174 billion subsidy will also go directly to consumers to stimulate demand. Along with that are orders for electric vehicles directly from the federal government. To realize his climate ambitions, Mr. Biden needs to benefit as many electric vehicle manufacturers as possible. Bloomberg The above expenses all bring about the same effect. That’s increasing demand to accelerate the electrification of the US auto industry. Previously, the federal government and some states offered tax credits (up to $7,500) and incentives for buying electric vehicles, but the main federal incentive will begin to cut after manufacturers sold 200,000 electric cars. “To realize his climate ambitions, Mr. Biden needs to benefit as many electric vehicle manufacturers as possible.” Bloomberg comment. Meanwhile, the Canadian government requires that all vehicles sold starting in 2040 will produce zero emissions. The province of Québec will ban the sale of new gasoline-powered passenger cars from 2035. British Columbia will completely ban the sale or rental of gasoline-powered cars and trucks by 2040. Norway also introduced subsidy programs to boost sales of electric vehicles, including direct support of 4,000 euros ($4,874) to users, a 50% subsidy on vehicle prices and the cost of station construction and installation. charger for the manufacturer. A plan to change petrol cars to electric cars is necessary to address climate problems. Photo: Reuters. Along with that is a discount on fast charging service, free parking, fees for ships, boats, harbors, and the use of bus lanes; some road and ferry fees are waived. Taxes exempted for electric vehicles in Norway include fuel, road, and vehicle taxes. Meanwhile, Japan also exempts taxes related to vehicle ownership, purchase and tonnage. In 2020, electric car buyers will receive a subsidy of up to $7,700 depending on the vehicle’s battery capacity. According to Dr. Bui Quang Tuan, Director of the Vietnam Institute of Economics, government support is essential if Vietnam wants to develop the electric car industry to catch up with the world’s trends and achieve its goals. on green growth. “The support policy demonstrates the tectonic role of the State, its commitment to accompany businesses so that they can grow up, reach out to the world, and raise the level of Vietnamese people. Behind this policy is a very important political meaning, not just economic support,” said Dr. Bui Quang Tuan, Director of the Vietnam Institute of Economics.

This manufacturing company now owns a phone and electronic equipment factory with an annual design capacity of 125 million devices. In the most recent year (2020), VinSmart said it sold 1.95 million smartphones to the market, up 225% compared to 2019 sales (600,000 units). One of the two production components of Vingroup With record-high phone sales, VinSmart also became the third largest smartphone supplier in the domestic market with 12.7% market share. This is the first time a Vietnamese phone brand is in the top of the largest manufacturers and consumers in the market. VinSmart sold more than 1.95 million smartphones to the domestic market and exported 1.3 million units in 2020. Photo: Gemini. Notably, in addition to selling phones in the domestic market, in the past year, VinSmart also for the first time recorded revenue from outsourcing and manufacturing original equipment for foreign partners. In it, the company said it had signed a contract and started exporting smartphones to US carriers and foreign customers, with an output of 1.3 million units last year. Returning to the domestic market, VinSmart has now launched 18 smartphone models in the segments from popular to high-end. In addition, this manufacturer has also begun to expand its product portfolio to other electronic devices such as electronic components, air purifiers, etc. In 2020, VinSmart has also become a partner for manufacturing components. blower components for Medtronic PLC ventilators, exported to the US and Ireland. In addition to the production of phones and electronic devices, VinSmart is also the enterprise in charge of building a technology ecosystem for Vingroup’s real estate projects with three core products, including Smart city (member of Vingroup). smart city), Smart home (smart home) and Smart services (digital services). Currently, VinSmart is the contractor in charge of deploying smart city solutions in all 3 major urban areas of Vinhomes including Vinhomes Ocean Park, Vinhomes Smart City (Hanoi) and Vinhomes Grand Park (HCMC). Manufacturing is not prioritized? In the latest announcement, Vingroup announced that it will close VinSmart’s TV and mobile phone production segments to focus on developing high technology for VinFast. This move follows after Vietnam’s largest private group had to withdraw from a series of previous business activities to focus on industry and technology. In fact, although it is one of the two components forming the production division of Vingroup, VinSmart’s activities are always invested much less than VinFast. Specifically, in terms of both investment scale and business results, VinSmart is still very modest compared to car and electric vehicle manufacturers with the same owner. According to the separate financial report of parent company Vingroup in the first quarter, the original value of Vingroup’s investment in VinSmart is estimated at nearly VND 5,000 billion, an increase of more than VND 2,000 billion compared to the beginning of the year. However, this figure is less than a quarter of the value of Vingroup’s investment in VinFast, reaching VND 22,007 billion at the same time. The scale of investment and production activities of VinSmart is much smaller than that of VinFast. Photo: Hoang Ha. Despite being one of two subsidiaries that received additional capital through direct investment in the first quarter, the value of Vingroup’s investment in VinSmart is currently only fifth and much lower than other businesses like Vinhomes (22,981 Billion); VinFast (22,007 billion); Vinpearl (16,992 billion); Vincomerce Holding (5,928 billion). In previous years, the investment in VinSmart was also in the middle and low group of Vingroup’s long-term financial investments in subsidiaries. Regarding business results, because VinSmart’s operating report has not been published in detail, the company’s revenue and profit is still accounted for in the production department along with VinFast. In 2020, the revenue of Vingroup’s production division (including VinFast and VinSmart) reached over VND 18,000 billion, an increase of more than 80% compared to 2019. In which, the leader of this group said revenue increased sharply in the year. thanks to increased sales of cars and smartphones. However, as planned by the leadership of this group continuously, Vingroup’s production division in the same year had a pre-tax loss of nearly VND 14,000 billion. In the first quarter of this year, manufacturing was also one of Vingroup’s high-growth business divisions along with real estate. Revenue from this activity brought the group a total of VND4,825 billion, up 44% over the same period. However, the business results report by division of Vingroup said that this business segment still has a pre-tax loss of 4,814 billion. With the cessation of smartphone and television production, in the coming time, VinSmart will focus mainly on high-tech development for VinFast and partly on Vinhomes’ real estate projects. In addition, part of the factory will be used to process for partners, the rest will be expanded and adjusted to produce new products.

Existing for 3 years, VinSmart sometimes reached the top 3 in terms of smartphone market share in Vietnam. No more Vietnamese phones that can compete “My feeling was surprise and disappointment when I received this information. During the VinSmart product business, The Gioi Di Dong assessed that this brand has gained competitiveness in certain segments. Their products are not inferior to other competitors”, a representative of The Gioi Di Dong, the smartphone retailer with the largest market share in Vietnam, shared. Zing . VinSmart is able to compete with other brands in the smartphone field. Meanwhile, the second retailer in the market, FPT Shop, also evaluates that VinSmart’s smartphones are capable of competing with other brands. “FPT Shop and consumers will regret it when Vietnamese brands gradually withdraw from the smartphone market. This is an area that requires constant and very fast updates. However, the mobile phone market has always had a very high level of competition,” said Nguyen The Kha – Head of Mobile Telecommunications Sector FPT Shop, expressing his regret at VinSmart’s announcement to stop the mobile segment. According to FPT Shop, VinSmart’s smartphones are beautifully designed, well-configured and reasonably priced. Vsmart competes strongly with brands from China. In the price segment of less than 4 million VND, Vsmart always has product lines such as Live, Star or Joy that compete well and, above all, are guaranteed for up to 18 months. VinSmart’s competitiveness is shown through numbers, not words. According to market research firm GfK In March, the market share of Vsmart-branded smartphones in Vietnam was 8.2%, ranking 6th in the domestic market. VinSmart achieved a market share of 12.1%, entering the group of 4 best-selling smartphone brands in Vietnam in December 2020. Previously, in October 2020, the company ranked 3rd with 10.5% market share. VinSmart was born in June 2018, and introduced the first smartphones 6 months later. After nearly 3 years of development, Vsmart has launched 19 phone models and 5 TV models. In June 2020, VinSmart announced that it had sold 1.2 million phones. Thus, with the stop of VinSmart, the Vietnamese mobile market still has a name called Bphone of Bkav. However, Bphone 3 has been sold since 2018 with undisclosed sales. Meanwhile, the B40 model was introduced in May 2020, but so far, after a year, this device has not been sold on the market. Model B86 has been discontinued from retail chains. Right decision “I was surprised when I received the news that VinSmart stopped the mobile and TV business. The first feeling is regret when losing a Vietnamese smartphone brand but fully support this decision. This is the right decision in the new context, specifically the epidemic,” said Mai Trieu Nguyen, owner of the Mai Nguyen mobile retail chain. Stopping the smartphone segment and focusing on electric cars is the right direction for Vingroup. According to Mr. Nguyen, besides needing capital to focus on developing VinFast, Vingroup also has to deal with the scarcity of processor chips in the whole industry. “In the context of Covid-19, chips are scarce. Without a chip, there would be no smartphone, the whole line had to wait for a supplier. A smartphone has a lot of chips. This dependence only makes the situation worse. Not to mention that chip suppliers often give preference to partners who sell in larger quantities,” Nguyen predicted the reason VinSmart stopped the smartphone business. At the same time, Mr. Nguyen also gave an example of another Vietnamese brand, Mobiistar, which also stopped doing business because of difficulties in the supply chain. “Mobiistar has tried to overcome difficulties in the component supply chain by selling in India. When the sales volume is large, the company is better able to negotiate components with suppliers,” said Mr. Nguyen. Meanwhile, Apple and Samsung, the two leading brands in the supply chain are also facing difficulties when processor chips are scarce due to the epidemic. Some other companies have had to postpone the product launch date because of a lack of components. According to experts, the decision to dissolve the business segment that has been built for 3 years and has a good market share is not easy. I really respect the executive brains because this is the right decision of VinSmart in the new context, namely the epidemic. Mr. Mai Trieu Nguyen, owner of mobile retail chain Mai Nguyen Previously, HTC and LG also hesitated for a long time before deciding to withdraw from this fiercely competitive market. “They wait too long only to push them into debt and loss. Vingroup’s management team is more assertive. What area has no future they boldly cut out. Buying and closing Vien Thong A or closing VinMart is one of their timely decisions,” said Nguyen. In addition, the electric car market is being evaluated as having the most potential for growth because this segment is still in its infancy. “Famous names in the technology industry such as Huawei, Sony, Xiaomi, Oppo all have plans to change direction. So it is very understandable that VinGroup closes the phone segment to seriously invest in electric cars. But honestly, emotionally, I still regret losing a Vietnamese brand in the smartphone market,” Nguyen concluded. Leaving the popular group market share for Oppo, Xiaomi VinSmart’s products are considered to focus on the segment under VND 4 million. In this segment, brands like Oppo, Xiaomi, vivo and even Samsung have competitive representation. The most obvious is the top 10 best-selling smartphones of GfK In the first quarter of 2020, there were 7 models priced under 5 million VND. Names like Samsung A12/A02s/A12/M15, Oppo A12/A15/A53 are typical examples for the strategy of using low-priced smartphones to capture market share of brands. In the smartphone segment under VND 5 million, companies like Samsung, Oppo, Xiaomi or vivo all see this as a place to capture market share. Low-cost phones make it easier for carriers to reach consumers, thereby creating loyal customer groups. This is an indispensable segment of a brand, although the profit performance may not be as high as that of high-end smartphones. Besides VinSmart, Bphone is the last Vietnamese brand that produces smartphones. According to the latest data from GfK , VinSmart accounted for 9.3% of Vietnam’s mobile market share in February 2021. The absence of VinSmart will leave a gap for brands with strengths in the popular group. “The appearance of Vsmart even in a short time with abundant financial potential, has taken more than 10% of the smartphone market share from foreign firms. This affirms, we Vietnamese people always crave and supporting ‘Make in Vietnam’ products, especially Smartphones,” said Bphone CEO Nguyen Tu Quang. Without VinSmart, the market would only be Bphone, a Vietnamese brand capable of launching new smartphones. However, Bkav’s latest product has been delayed for nearly a year. Besides, Bphone’s market share competitiveness is still not really convincing when sales figures have not been announced.

“I’m really surprised! VinSmart has entered the top 3 brands in Vietnam, and the top 20 in Asia by the end of 2020. They still have many opportunities in the near future when 5G networks are more popular in Asian countries. Asia, Africa, with cheaper usage,” said Neil Mawston, global head of telecommunications at research firm Strategy Analytics. Zing . VinSmart’s smartphone production may be hampered by a global chip shortage. When asked if a reason for the decision could be found, Mr. Mawston suggested that the global chip crisis could be a factor. Not just a single name, this crisis is making many smartphone manufacturers difficult. Many firms face difficulties in the global crisis hoảng “In terms of sales volume, VinSmart is still a small smartphone company in terms of scale. I think small firms are suffering the most because of the chip shortage crisis,” said Anshel Sag, an analyst at the company. Moor Insights & Strategy shared with Zing. The crisis of the semiconductor industry began with the outbreak of the Covid-19 epidemic. At that time, manufacturers thought that user demand would also decrease. However, the truth is the opposite. Due to long-term stay at home, people buy more technology. They buy more powerful computers, bigger screens to work from home. Children can buy new laptops to study at home. TVs, game consoles, and home appliances all increased sales. Chip companies like TSMC are working at more than 100% capacity to reduce the impact of the chip industry crisis. Photo: Reuters. The pandemic has turned into a month-long shopping festival. Therefore, the demand for chips also increased sharply. In the world, there are only a few outsourcing companies possessing modern technology to provide chips for smartphones. When every industry wants to increase production, the supply cannot meet. “Small firms are at a disadvantage because their scale is not large enough, leading to very thin profit margins. In the smartphone industry, scale is very important. It takes a lot of smartphones to be able to negotiate flexible prices. good conditions,” said Mr. Sag when asked about the difficulties of small smartphone manufacturers. In the first quarter financial report published at the end of April, Apple CEO Tim Cook also warned about chip shortages. The head of Apple said that it was not the demand that fell, but the lack of chip supply was the company’s biggest concern in the second quarter. Apple CEO also acknowledged that the company may face difficulties in the near future because of chip shortages. Photo: Cnet. “We think there will be a problem with supply. The chip shortage will mainly affect iPads and Macs. We also control our demand fairly well, but cannot comment on demand from vendors. different,” the Apple CEO told investors. Haven’t found a solution yet Currently, the smartphone market is only a game of a few big companies. One-time names like Sony accepted to downsize, selling only 400,000 units in the first quarter as they tried to keep the Xperia brand for a while. The chip crisis will make it even more difficult for small-scale smartphone companies in the near future. VinSmart has entered the top 3 brands in Vietnam, and the top 20 in Asia by the end of 2020. They also have many opportunities in the near future when 5G networks are more popular in Asian and African countries, with fees. cheaper to use. – Neil Mawston, Global Head of Telecommunications at research firm Strategy Analytics “When producing on a small scale, these companies will be the first affected by the lack of supply, increasing prices. It should also be remembered that suppliers still prioritize serving large, most important customers. theirs,” commented Mr. Anshel Sag. According to Neil Mawston, in addition to the main processor, another component, the screen, also increased in price by about 15%. This is also a consequence of the chip crisis, because every screen on a smartphone must have a control chip. “The pandemic, social distancing, and competition for supplies with other products such as tablets, laptops and electric vehicles have put the smartphone component supply chain in the most stressful state in years.” Mr. Neil Mawston shared. In a recent interview, Qualcomm CEO Cristiano Amon said that the chip shortage could last until the end of 2021. Therefore, difficulties are still ahead for many companies producing technology products. Cars are the manufacturing sector hardest hit by chip shortages. Technology manufacturers may also be affected in the near future. Photo: Automotive News. When asked more about VinSmart, Mr. Neil Mawston said that he was surprised because Vsmart smartphones have a certain market share in the domestic market. This analyst believes that this is one of the big advantages to be able to expand into the regional market. “Every major smartphone maker uses the domestic market as a platform to go regional or global. Apple’s iPhone was successful in the US and then expanded to other countries. The story is similar to Huawei in China. Korea, and Samsung in Korea. VinSmart is also open to growth in Southeast Asia. Therefore, we find it difficult to understand when they decide to stop producing smartphones, especially when the opportunity for 5G is very close, “Mr. Mawston said.

VinSmart stops producing phones and televisions On May 9, Vingroup officially announced that VinSmart would stop producing TVs and smartphones to focus resources on developing IoT products and Infotainment features for VinFast cars. Sharing the main reason why VinSmart made such a decision, Mr. Nguyen Viet Quang, Vice President and General Director of Vingroup said: “The production of smart phones or smart TVs has no longer brought breakthrough possibilities, Meanwhile, the development of smart cars, smart homes, smart cities brings many benefits and outstanding experiences. force for this spike “. VinSmart factories will continue to produce existing phones and TVs until the end of the product’s life cycle to supply the market. Then part of the factory will be used to outsource to partners, while the rest is expanded to adjust to produce new products. With products sold to the market, VinSmart said it will maintain the warranty and customer care as committed. Vsmart phones sold to the market are still upgraded and updated with software. After stopping production of smartphones, TVs, VinSmart will focus on developing information – entertainment – service (Infotainment) features; research, design and manufacture of electronic components, battery cell systems, complete electric batteries, electric motors for VinFast cars. At the same time, VinSmart still retains research on smart cities, smart homes and IoT devices. VinSmart’s smart home solution appeared at a major urban exhibition late last year and has been operated in two major urban areas, Vinhomes Smart City and Vinhomes Ocean Park. VinSmart retains its research on smart cities, smart homes and IoT devices. Its most prominent smartphone products are Vsmart Joy 3, Vsmart Live 4, phone with front camera hidden under the Vsmart Aris Pro screen. In the TV segment, VinSmart has two main lines of 4K resolution: high-end KE and mid-range KD, with sizes from 43 to 55 inches, priced from VND8.7 million.

Established in June 2018, VinSmart is one of the two main companies operating in the Vingroup’s manufacturing division, along with car and electric car manufacturer VinFast. This manufacturing company owns a telephone and electronic equipment factory with an annual design capacity of up to 125 million devices. VinSmart smart electronics factory in Hoa Lac Hi-Tech Park. Photo: Vingroup In Hoa Lac Hi-Tech Park (Hanoi), the complex factory of VinSmart has a total area of ​​up to 15ha, of which, construction area of ​​phase 1 is only 4.8 ha. At the factory in the first phase inaugurated in November 2019, the production area reached 4.5 hectares, including the electronic circuit board manufacturing subdivisions, phone manufacturing and independent research institutes. designed capacity of 26 million devices / year. Half a year after its inception, the company launched its first four smartphone lines. After two and a half years, the total number of VinSmart phone models has increased to 18 lines, of which the first product appeared in the high-end segment, and successfully produced terminals supporting 5G technology. . In 2020 alone, VinSmart said it sold 1.95 million smart phones to the market, an increase of 225% compared to 2019 sales (600,000 units). With record high phone sales, VinSmart also became the 3rd largest smartphone supplier in the domestic market with 12.7% market share. This is the first time a Vietnamese phone brand is in the top manufacturers and consumers in the market. As of early 2021, VinSmart’s distribution network of mobile phones has expanded with 10,000 retail agents, 4 customer care centers and 101 warranty points. Notably, not only consuming phones in the country, last year, VinSmart also recognized for the first time revenue from processing and manufacturing original equipment for foreign partners. VinSmart said that last year it signed a contract and started exporting smartphones to US carriers and foreign customers, with a production of 1.3 million units. In addition, the manufacturer also expanded its product portfolio to other electronic devices such as electronic components, air purifiers … In 2020, VinSmart also became a partner in manufacturing air blower components. supplied to Medtronic PLC’s series of ventilators, exported to USA and Ireland. Not only that, VinSmart is also in charge of building technology ecosystems for its real estate projects with three core products including Smart city (smart city), Smart home (smart home) and Smart. services (number services).

According to the new decision, VinSmart will stop the development of televisions and mobile phones, and switch to the development of smart features on vehicles and houses. Before this unexpected information, the public’s opinion was a lot of turmoil. Especially for those who regularly support Vietnamese goods, this is quite sad news. PT readers shared: “Vin has too many embraces. It’s the brightest hour in the car segment, so I hit hard. Unfortunately, Vsmart is okay but cheap. ” Many people feel sad when they lose a low-cost phone company created by Vietnam. In another aspect, many people think that this is the right decision because the current smartphone and television market is saturated, with very little space for development and competition. In addition, Chinese phone companies are also increasingly appearing in the Vietnamese market, making competitiveness in the industry on the rise. The public also commented that, because the business is right there, when Vingroup could not acquire LG, R & D was weak, at this point, the exit strategy is a good strategy. Everything is two-way, when there are many people expressing quite negative emotions to receive this information, there is a part of the public still acknowledging and appreciating what Vsmart has done for the time. by. For example, readers NM from Hanoi shared that: “Vsmart’s mission is like that, it is already complete. I do not know how sales, profit or loss, but thanks to Vsmart, the Vin brand has also reached all classes of users in the country, as a springboard for Vinfast to be born. Information about the warranty of VinSmart phones. In particular, many people have the same question: “Are Vinsmart buyers still under warranty?” Answering this question, Vingroup said that, regarding the products sold to the market, VinSmart commits to maintain the warranty, repair, and care as committed until the date that the customer no longer uses it. more products. In particular, a part of the phone software design department continues to research to upgrade and update Vsmart phones that have been sold to the market. “

Vsmart Live 4 “make in Vietnam” line of Vinsmart. On May 9, Vingroup officially announced that VinSmart would stop producing TVs and smartphones to focus resources on developing IoT products and Infotainment features for VinFast cars. Mr. Nguyen Viet Quang, Vice President and General Director of Vingroup, said: “The production of smart phones or smart TVs has no longer brought breakthrough capabilities, making a difference for users. The development of smart car, smart home, smart city brings many benefits and outstanding experience. Therefore, we are determined to put all resources into this spearhead. VinSmart factories will continue to produce existing phones and TVs until the end of the product’s life cycle to supply the market. Then part of the factory will be used to outsource to partners, while the rest is expanded to adjust to produce new products. With products sold to the market, VinSmart said it will maintain the warranty and customer care as committed. Vsmart phones sold to the market are still upgraded and updated with software. After stopping production of smartphones, TVs, VinSmart will focus on developing information – entertainment – service (Infotainment) features; research, design and manufacture of electronic components, battery cell systems, complete electric batteries, electric motors for VinFast cars. In addition, VinSmart still retains research on smart cities, smart homes and IoT devices. VinSmart’s smart home solution appeared at a major urban exhibition late last year and has been operated in two major urban areas, Vinhomes Smart City and Vinhomes Ocean Park.

VinSmart will play television and mobile phones Vingroup said VinSmart will focus its resources on developing electronic products and “Infotainment” features for VinFast cars. This is a strategic step to bring VinFast towards its goal of becoming one of the smartest and most convenient electric car manufacturers in the world. According to the new decision, VinSmart will stop the development of televisions and mobile phones, and switch to the development of smart features on vehicles and houses. In which, the focus is on developing information – entertainment – service (Infotainment) features for VinFast cars. With nearly 150 Infotainment features coming soon, VinFast cars will bring different utilities, creating a competitive advantage in the global auto market. In addition, VinSmart focuses on research, design and production of electronic components, electric battery cells, complete electric battery systems and electric motors of all kinds, in order to increase the localization rate. and ensure a high quality supply of VinFast. VinSmart will also continue to promote current research on Smart Cities – Smart Houses and related IoT devices to bring superior living experiences to users. To put all of their energy into a new direction, VinSmart factories will continue to produce existing phones and televisions until the end of the product’s life cycle to supply the market. Then part of the factory will be used to outsource to partners, while the rest is expanded to adjust to produce new products. Regarding products sold to the market, VinSmart commits to maintain the warranty, repair and care as committed until the day when customers no longer use the product. In particular, a part of the phone software design department continues to research to upgrade and update Vsmart phones that have been sold to the market. On May 6, Vingroup announced that it would gather vehicle development forces from overseas VinFast research institutes to its headquarters in Vietnam to ensure the research and development progress and class for new models. Previously, the Group also withdrew from retail, agriculture and aviation to focus on the core priority of cars.

“The production of smart phones or smart TVs has ceased to make a breakthrough and make a difference for users. Meanwhile, the development of smart cars, smart homes, smart cities bring to many outstanding benefits and experiences. Therefore, we are determined to put all resources into this spearhead “, Mr. Nguyen Viet Quang, Vice Chairman and General Director of Vingroup, said. Nearly 3 years in the smartphone market, reaping many successes, Vingroup decided to stop this segment to focus more on VinFast. However, VinSmart factories will continue to produce existing phones and TVs until the end of the product’s life cycle to supply the market. Part of the factory will then be used to outsource to partners, with the rest expanded to make new products. VinSmart will also maintain the warranty and customer care as committed with the products sold to the market. Vsmart phones sold to the market are still upgraded and updated with software. According to a representative of Vingroup, after stopping production of smartphones and TVs, VinSmart will focus on developing information – entertainment – service (Infotainment) features; research, design and manufacture of electronic components, battery cell systems, complete electric batteries, electric motors for VinFast cars. VinSmart will also retain research on smart cities, smart homes and IoT devices. VinSmart’s smart home solution appeared at a major urban exhibition late last year and has been operated in two major urban areas, Vinhomes Smart City and Vinhomes Ocean Park. VinSmart was born in June 2018, starting with the production of smartphones with the Vsmart brand. Nearly 3 years of development, Vsmart introduced to the market 19 phone models and 5 TV models.

According to the new decision, VinSmart will stop the development of televisions and mobile phones, and switch to the development of smart features on vehicles and houses. In which, the focus is on developing information – entertainment – service (Infotainment) features for VinFast cars. With nearly 150 Infotainment features coming soon, VinFast cars will bring different utilities, creating a competitive advantage in the global auto market. The second task is to focus on the research, design and manufacture of electronic components, battery cells, complete electric battery systems and electric motors of all kinds, in order to increase localization rates. and ensure a high quality supply of VinFast. VinSmart is one of the two main enterprises in Vingroup’s production activities. Photo: Le Trong. In addition to focusing on VinFast, VinSmart will also continue to promote current research on Smart City – Smart Home and related IoT devices to bring superior living experiences to people. use. To put all of their energy into a new direction, VinSmart factories will continue to produce existing phones and televisions until the end of the product’s life cycle to supply the market. Then part of the factory will be used to outsource to partners, while the rest is expanded to adjust to produce new products. Regarding products sold to the market, VinSmart commits to maintain the warranty, repair and care as committed until the day when customers no longer use the product. In particular, a part of the phone software design department continues to research to upgrade and update Vsmart phones that have been sold to the market. “The production of smart phones or smart TVs no longer brings the ability to break through and create different values ​​for users. Meanwhile, the development of particularly smart cars, smart homes, even the creation of smart cities … will bring many benefits and outstanding experiences to mankind. Therefore, we are determined to dedicate all resources to this spearhead ”, said Mr. Nguyen Viet Quang, Vice President and General Director of Vingroup. On May 6, Vingroup announced that it would gather vehicle development forces from overseas VinFast research institutes to its headquarters in Vietnam to ensure the research and development progress and class for new models. Previously, the Group also withdrew from retail, agriculture and aviation to focus on the core priority of cars.

VinFast expects a higher price than Ford

On April 12, Bloomberg reported that Vingroup was considering bringing VinFast on the US stock exchange to raise $ 2 billion. According to this source, the car company is currently working with consulting units to IPO (initial public offering) right in the second quarter of 2021.

The source of Bloomberg confirmed that if successful, the IPO could push VinFast’s valuation up to $ 50 billion. At that time, VinFast will immediately close to the top 10 largest car manufacturers in the world, on par with famous manufacturers such as Hyundai (51.38 billion USD), Honda (50.86 billion USD) and surpass Ford (49, 47 billion USD).

With a scale of $ 2 billion, VinFast’s IPO will be the largest ever IPO of a Vietnamese company, after Vinhomes’ first share sale worth $ 1.4 billion in 2018. This could also become the first Vietnamese company to list in the US.

Although VinFast is a fledgling company, the valuation may outstrip traditional Asian carmakers like Suzuki ($ 21.29 billion) and Japan’s Nissan ($ 20.63 billion).

VinFast IPO details including the size and timing may change as discussions with the consultant are in progress. Bloomberg also said that Vingroup representatives declined to comment on this information.

The top 10 car manufacturers with the highest market capitalization are currently Tesla of the US, Toyota of Japan, Volkswagen of Germany, Daimler of Germany, General Motors (GM) of the US, BMW of Germany, BYD and Nio of China. , Stellantis and Ferrari.