Historically, Vietnam was not often associated with industrial or manufacturing prowess. However, this narrative is being reshaped by giants like Vingroup, whose automotive arm, VinFast, is spearheading the country’s industrial transformation.

For decades, Vietnam’s domestic automotive industry grappled with significant challenges. The market was small, production capabilities remained limited, and there was heavy reliance on foreign manufacturers. Localization rates were consistently low, supply chains lacked integration, and local firms struggled to gain the expertise needed to compete globally. Most vehicles were either imported or assembled domestically under foreign licenses, reflecting a market constrained by both infrastructure and ambition.