VinFast and BMW are indebted to one person

German Handelsblatt said that the story of VinFast originated in the chain of activities from 1970, and VinFast and BMW all owe one person.

Vietnam builds its first car brand. German companies meet billions of billions. Above all, they owe one person.

Two special cars will be introduced on October 1 at the Paris Motor Show. They are different when they come from a country that has never had a reputation for producing cars. With the Vinfort sedan and SUV, people see the message: the first car brand in Vietnam, the first car assembled in the country.

Half the truth of the car

But that is only half the truth. Because these cars were made by German machines. They are designed based on the German model, part of the equipment is the German company, and workers make the car also trained according to German standards.

Thus, the VinFast project is also the success of the German industry. Its factory in Hai Phong is considered as the largest industrial project in Southeast Asia. Vingroup parent company has invested about $ 3.5 billion for this project.

According to information Handelsblatt obtained, most of this capital was poured into German companies. This project is expected to "guide" the domestic economy.

The success of the German company in this project surprised many people. The Vietnamese market is dominated by Korean, Japanese and Chinese automakers. In the industrial zones here, Asian companies dominate.

Of the total import turnover of Vietnam, only 3% from Germany, while more than half come from China, Korea and Japan.

To find out why the German industry can penetrate the Asian market, it's best to look for a small man with open teeth and sly smile. Vo Quang Hue stands in the middle of VinFast's headquarters in Cat Hai, with the shape of a UFO ship.

"Do you know who designed this building," the Vingroup auto industry director asked. It's Henn Architects, a German company. He launched other projects designed by Henn: the BMW Innovation Center in Munich, the Porsche Design Center in Weissach, and many other projects. "I only transfer what I know," Hue said.

Many German engineers are building important parts of the VinFast plant: the Schuler compressor, the Eisenmann line, the Dürr paint, the ABB robot and the Siemens network. "The line is almost 100% German," said Hue.

Story from the 1970s

Not only that, at the training center of the headquarters there are 200 Vietnamese engineers have certificates issued by the German Chamber of Commerce abroad. This top-level certificate is equivalent to a German industrial engineer or automotive engineer.

Of course, the development of the German car industry is the main reason for the German companies to win many important positions in the project. However, this success is a chainable result that goes very deep in this highly branched industry.

Head of the main chain is Mr. Vo Quang Hue. "I feel like a bridge between Germany and Vietnam," he said.

Since the 1970s, his parents decided to send him to Germany to study and become an engineer. He studied in Cologne and Aachen, then worked at BMW.

Hue has German citizenship, and has worked in many countries around the world, including Egypt, Mexico and Vietnam. Prior to moving to VinFast, he was General Manager of Bosch Vietnam. Two years ago, he received a call from Pham Nhat Vuong.

Mr. Vuong is the head of Vingroup. After success in Ukraine with instant noodles, he returned to Vietnam and built Vingroup into a powerful corporation, operating in many fields.

Now, Vuong wants to turn Vietnam into a country with a car industry, and he goes to Mr. Hue.

At VinFast, they determined from the beginning that they would have to buy a lot of things. Designed by Italy's Pininfarina studio. Besides, VinFast and Hue have determined that they will be closely associated with German technology. Hue has contacted a number of German car manufacturers, and found agreement with his former BMW. The company agreed to sell VinFast the development and design rights to the original 5 Series, and both VinFast cars were developed based on this prototype.

45% from Germany

"In the car industry, this is a relatively new business, and we are building a new way," said VinFast CEO James Deluca. Deluca was formerly General Motors' executive vice president of global manufacturing. However, BMW does not comment on this issue.

Because of the significant components of the BMW, not only the engineers but the German component companies also play a role in the car. According to Deluca, up to 45% of parts come from German companies. Next to the main plant, the German company ZF is also building another factory with an investment of 18 million euros. The plant is scheduled to complete in December.The schedule is very fast. VinFast is expected to launch the first model in 2019. However, VinFast is also very fast: where a year ago was a beach, now is mudflats, crane has built the factory.

In the future, VinFast will focus not only on gasoline. The company has worked with Siemens to develop electric motors for buses. The first electric car is being developed by Edag, and will also be introduced next year.

Industry experts say that VinFast can be successful thanks to the advantages of international partners. "In close cooperation with BMW, VinFast has a big advantage over companies like Proton," says Titikorn Lertsirirungsun, Southeast Asia's managing partner with LMC Automotive.

Proton, a Malaysian car maker, has never had major contracts with international partners.

VinFast also wants to sell cars in the international market. This is very important if they want to succeed. Their factory has a capacity of 250,000 vehicles / year, equivalent to the number of cars consumed throughout Vietnam in a year. By 2025, half a million vehicles will be produced.

But with at least 175 horsepower engines, this would be the "out of reach" car of most Vietnamese. VinFast's general director, James Deluca, said they introduced the car in Paris to explore the market. The car will be introduced as a car produced in Vietnam. "But we will not hesitate to talk about the large amount of German technology being used in the car," James said.