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This $17,000 Hatchback From Vietnam Comes at a Cost: No Profit

Viet

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VinFast Fadil hatchbacks. Photographer: Yen Duong/Bloomberg


Vietnam’s foray into the car business with its own brand comes at a cost to its manufacturer: No initial profit.

“We don’t take profit. So right now we’re still losing money on cars we sell,” Le Thi Thu Thuy, chairwoman of VinFast, Vingroup JSC’s auto unit, said in an interview at the Bloomberg Asean Business Summit in Bangkok on Friday.

VinFast marked the rollout of its first vehicles on June 14 as it looks to tap into the one of the world’s fastest-growing economies. To attract brand-conscious Vietnamese consumers -- and compete with giants such as Toyota Motor Corp., Ford Motor Co. and Honda Motor Co. -- the company is offering its first line of cars at cost, Thuy said.

Vingroup will continue to subsidize its car business for two to five years, according to Thuy. “With the next models of cars and optimization of our operations, we can bring the cost down,” she said.

Its first batch of cars include a hatchback named Fadil, which sells for around $16,950 (Dh62,260), a sedan priced at $42,493 and a sports utility vehicle that goes for $60,734.

“We started the company with the domestic market in mind,” said Thuy, who is also Vingroup’s vice chairwoman. “We see very low car penetration in Vietnam right now. It’s 10% of what it is in Thailand. It’s huge market potential if you can get to Thailand’s level in next few years.”


VIETNAM-VINFAST.jpg

VinFast Fadil hatchbacks sit inside the automaker's plant in Haiphong. Bloomberg

Vietnam’s motor-vehicle sales rose 16.3% in May from a year ago, according to data from Vietnam Automobile Manufacturers’ Association.


https://www.bloomberg.com/news/arti...chback-from-vietnam-comes-at-a-cost-no-profit
 
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It’s a long run. catching up with the Siamese will be a major breakthru.


@somsak
 
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6x6 KrAZ-255 military truck imported from Ukraine.:)

Ukraine is a third world country, but still light years ahead of Vietnam.

GqrKZVs.jpg

Nh1W7io.jpg
 
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6x6 KrAZ-255 military truck imported from Ukraine.:)

Ukraine is a third world country, but still light years ahead of Vietnam.

GqrKZVs.jpg

Nh1W7io.jpg

Jesus christ, that truck wouldn't look out of place in a vintage WW2 photograph. Can't believe how outdated it is.
 
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6x6 KrAZ-255 military truck imported from Ukraine.:)

Ukraine is a third world country, but still light years ahead of Vietnam.

GqrKZVs.jpg

Nh1W7io.jpg
China bought an outdated carrier from the third world Ukraine so you just degraded China to a primitive fourth world country. Congrats.

Jesus christ, that truck wouldn't look out of place in a vintage WW2 photograph. Can't believe how outdated it is.
Russia’s Kamaz has a factory under construction in Vietnam. Modern trucks will run off assembly line by next year.

 
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China bought an outdated carrier from the third world Ukraine so you just degraded China to a primitive fourth world country. Congrats.


Russia’s Kamaz has a factory under construction in Vietnam. Modern trucks will run off assembly line by next year.


Well, good for you guys
 
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