Strategic partnership for GM in Việt Nam
GM has sealed the deal with Việt Nam’s VinGroup, announcing a partnership that entails vehicle distribution, sales and manufacturing in the country.
VinGroup
VinGroup is not your average company. It was created in 1993, in Ukraine, as “Technocom Corporation” by a group of young and ambitious Vietnamese. The company started with food production in its early years and became quickly one of Ukraine’s most influential companies. As the focus and product/service offering shifted more to Việt Nam, the company as a whole moved back home and became VinGroup Joint Stock Company.
Today, VinGroup profiles itself as a “lifestyle” company, with activities in hospitality, entertainment, retail, healthcare, industry and agriculture, all starting with the letters “VIN” (VinHomes, VinSchool, VinCom Retail – see picture, …).
One of the group’s companies is VinFast, a car and motorcycle manufacturing start-up aiming to become a key player in the South-East Asian automotive landscape. Not much is known so far about the vehicles that VinFast is developing, nor about the technologies to be used. Sure is however that VinFast will focus on electric for both cars and motorcycles. Pictures of the progress of their plant area available and Việt Nam’s PM has been said to endorse the company’s efforts to put the country on the automotive map.
Alliance
Through the GM Alliance, VinFast will become Chevrolet’s exclusive distributor, combining VinGroup’s unique retail position on the market and GM’s existing dealer network. VinFast will also acquire GM’s Hà Nội factory.
The production of an all-new, global small car, licensed from GM and sold under the VinFast brand, have already been announced . Production of this vehicle will begin in 2019. GM will become a preferred automotive technology provider to VinFast, opening the doors for future product sharing and technology transfer. VinFast’s ambitions go even further; they hope to launch a total of 5 new vehicles in 2019.
GM
General Motors has already a significant presence in Việt Nam, and has found in VinGroup a local partner that can offer an unmatched distribution network. GM’s International Executive Vice-President and President Barry Engle Meanwhile, cited VinFast as the best choice for his company to partner with.“The automotive industry in Việt Nam is set to become a key growth engine for economic development and we now have the strongest possible local partner in VinFast to grow Chevrolet and drive our brand forward,” Engle recognised the importance of local partnerships. “The GM-VinFast strategic partnership will best position the Chevrolet brand and dealer network for long-term growth in Việt Nam by leveraging GM’s global scale and expertise, married with VinFast’s domestic strength and insight.”
The practical integration of the partnership will commence end of 2018, when dealerships and operations will be handed over to VinFast. Employees will receive a VinFast contract prior to the integration date.
