Vinfast to Agressively Expand in Thailand, Forms 15 Partnerships

VinFast, the Vietnamese electric vehicle manufacturer, has announced partnership agreements with 15 dealers in Thailand, marking its latest move to expand its presence in Southeast Asia and capitalize on the region's growing demand for electric vehicles (EVs). The agreements were signed at the Bangkok International Motor Show held this week.

Thailand has ambitious plans to transition approximately 30 percent of its annual vehicle production to EVs by 2030, driving competition among EV manufacturers. Some companies aim to utilize Thailand's status as a regional automotive hub by establishing manufacturing bases in the country.

VinFast's entry into the Thai market coincides with strong sales of Chinese EV brands like BYD and Great Wall Motor in Thailand, as well as discussions between market leader Tesla and Thai authorities regarding a potential production facility. BYD currently holds the largest share of Thailand's EV market, while Xpeng, based in Guangzhou, plans to open five showrooms in Thailand this year to offer higher-end EV models.

According to VinFast, the company and its partners will work together to establish 22 showrooms along major roadways in the Greater Bangkok Area, aligning with VinFast's expansion strategy in Thailand.

In 2023, Thais purchased 73,500 battery EVs, accounting for approximately 9 percent of domestic car sales. This figure is expected to double by the end of 2024, according to forecasts from the Federation of Thai Industries. VinFast, which commenced EV production in 2021 and went public on Nasdaq last year, has plans to expand its presence to 50 countries. The company sold nearly 35,000 cars in 2023.