VinFast (VFS) Achieves 60% EV Localization, Targets 80% with Domestic Battery Cells

Overview

VinFast, the electric vehicle subsidiary of Vingroup, has achieved approximately 60% domestic content in its electric vehicles, with plans to reach 80% localization through future domestic battery cell production. This milestone was announced by Lê Khắc Hiệp, Vice Chairman of Vingroup, at an investor conference, signaling a strategic pivot from assembly to integrated manufacturing that could reshape Vietnam’s automotive industry.

Key Facts

• VinFast has achieved approximately 60% localization for its electric vehicles as of 2025.
• The company targets increasing this to 80% once battery cells are produced domestically in Vietnam.
• VinFast delivered over 175,000 vehicles in 2025, becoming the top automotive brand in Vietnam by sales.
• The strategy involves building a highly automated production complex covering R&D, stamping, welding, painting, and engine manufacturing.
• This approach aims to transition Vietnam’s automotive sector from dependent assembly to autonomous production.
• The company positions itself as a core hub to connect and lead a network of domestic suppliers.

What Happened

At the “40 Years of Renovation: The Leading Role of Economic Groups” conference organized by Investor Magazine on April 13, Lê Khắc Hiệp, Vice Chairman of Vingroup, outlined VinFast’s progress in domestic manufacturing. He stated that VinFast has reached about 60% localization for its electric vehicles, with a goal of 80% once battery cells are produced locally. This marks a significant shift from Vietnam’s historical reliance on automotive assembly with low domestic content, which previously limited local firms’ participation in the global value chain due to technology, capital, and market scale constraints.

Hiệp emphasized that VinFast’s market scale—delivering over 175,000 vehicles in 2025 and becoming Vietnam’s top automotive brand—has created a foundational condition for supporting industrial development. By acting as a core enterprise, VinFast generates sufficient pull to activate this process, transforming market demand into development momentum for the entire supply chain. The company’s integrated production approach, covering all stages from R&D to manufacturing, is designed to restructure Vietnam’s automotive industry toward forming a domestic economic linkage chain.

Market Context

VinFast (VFS) is listed on the HOSE exchange and operates in the competitive global automotive sector, where localization and supply chain efficiency are critical for cost competitiveness and market expansion. The announcement comes as VinFast continues to expand internationally, with its localization strategy potentially reducing reliance on imported components and mitigating supply chain risks. This development aligns with broader Vietnamese industrial policy goals to enhance domestic manufacturing capabilities, particularly in high-tech sectors like electric vehicles.

Strategic Significance

The 60% localization rate and target of 80% represent a core strategic thesis for VinFast: transitioning Vietnam’s automotive industry from assembly-based dependency to integrated, autonomous production. By mastering core technologies and building a domestic supplier network, VinFast aims to create a sustainable value-added ecosystem that can compete regionally, notably against established automotive hubs like Thailand and Malaysia. This could lower production costs, improve supply chain resilience, and support long-term growth as the company scales globally.

What to Watch

• Announcement of a timeline for domestic battery cell production in Vietnam.
• Quarterly financial reports from VinFast (VFS) to monitor cost trends and margin impacts from increased localization.
• Updates on supplier network expansion and partnerships with Vietnamese industrial firms.
• Regulatory developments in Vietnam supporting electric vehicle and battery manufacturing incentives.
• Comparative market share data in Southeast Asia to assess competitiveness against Thai and Malaysian automakers.