India Bound VinFast Joins TIME 100 Most Influential Companies List

VinFast just landed a spot on TIME magazine’s prestigious TIME100 Most Influential Companies” list for 2024. TIME specifically highlighted VinFast’s disruptive influence, applauding the Vietnamese electric car company’s rapid growth and innovative approach.

In the shadow of mango trees and palm groves on the fringes of northern Vietnam’s Red River Delta, a new disruptor in the electric vehicle race has emerged. VinFast, a Vietnamese automaker with ambitions that rival established giants, has built a sprawling factory complex here that embodies its bold vision.

Five years later, VinFast has been named to TIME Magazine’s 2024 list of the 100 Most Influential Companies (TIME100). This prestigious recognition places VinFast alongside established giants like Google, Microsoft, Amazon,and TikTok, as well as automotive leaders like BMW and Toyota. The disruptive AI startups like OpenAI and Anthropic share the company’s recognition.

Within the list, TIME categorizes VinFast as a “Disruptor,” acknowledging the company’s impact on the market through its innovative and unprecedented business model. The magazine further highlights VinFast’s contribution to the electric vehicle industry, calling it “An EV splash.”

VinFast Joins TIME’s Prestigious List

Founded in 1889 and headquartered in New York, TIME magazine holds immense global influence. For over a century, its publications have reached all continents, and its accolades are highly respected worldwide. The TIME100 list, established in 2021, specifically recognizes the top 100 most influential companies across diverse sectors like technology, healthcare, transportation, and energy. Inclusion on this list signifies a significant achievement for any company.

TIME’s rigorous selection process involves editorial review, contributions from global reporters, and consultations with external experts. The chosen companies demonstrate exceptional capabilities, market impact, creativity, ambition, and a proven track record of success.

VinFast is specifically categorized as a “Disruptor.” Disruptors, as defined by TIME, are companies that introduce innovative methods or technologies that have the potential to significantly reshape their respective fields. This designation acknowledges the Vietnamese company’s impact on the automotive industry by challenging traditional business models.

Dr. Tran Dinh Thien delved deeper into VinFast’s inclusion in TIME Magazine’s “Disruptor” category, highlighting its significance on multiple levels. “Firstly,” Dr. Thien explained, “it’s a breakthrough for a company from a developing nation to reach the global stage. Secondly, VinFast’s choice of focusing on electric vehicles, a challenging and new technology, is itself a breakthrough.”

He further emphasized VinFast’s success in competitive markets with a premium product, electric cars. “This boldness and willingness to take on challenges are what define a true breakthrough, something not every company dares to attempt,” Dr. Thien stated.

Looking beyond VinFast’s specific achievements, Dr. Thien believes the company’s journey will serve as an inspiration to the world. “VinFast’s story will encourage and empower new business visions globally,” he said. “Furthermore, its origin in a developing country like Vietnam will motivate businesses from emerging economies to be bolder in today’s fiercely competitive environment.”

VinFast’s Breakneck Speed

Vietnamese economic expert Pham Chi Lan emphasizes the historical significance of VinFast’s recognition. “This accomplishment is even more remarkable considering the current global climate – intense market fluctuations and fierce competition across many industries, particularly the electric vehicle sector,” Ms. Lan observes.

“When TIME visited auto manufacturer VinFast’s EV factory in northern Vietnam in 2022, Google Maps still showed half the site as under the South China Sea; the land had been reclaimed and made operational in just 21 months,” TIME says.

Just outside the plant, a world away from the whirring robots within, fishermen in traditional conical hats ply the mudflats, casting nets for tilapia and grass carp. But step inside VinFast’s facility near the port city of Haiphong, and an entirely different scene unfolds. Here, a ballet of automation unfolds as cars snake their way along a 2.5-mile overhead conveyor assembly line. A synchronized army of 1,250 robotic arms, moving with the precision of ballerinas, meticulously adds some 3,000 components to each vehicle in a flurry of sparks and rivets.

The commitment to cutting-edge technology is evident throughout. VinFast boasts machinery sourced from Germany, Japan, and Sweden, with a staggering 98% of welding performed by automated systems. The factory’s impressive capacity allows for the production of 250,000 cars annually. Perhaps most remarkably, the facility achieves a level of flexibility unseen in traditional manufacturing. Instead of dedicated assembly lines for each vehicle model, VinFast has engineered a system capable of simultaneously producing multiple models on a single line.

Only 5 years since the official inauguration of the electric car factory in Hai Phong, VinFast has gradually conquered global markets after switching to pure electric cars. “Backed by Vietnam’s richest man, Pham Nhat Vuong, who made his fortune in instant noodles but whose sprawling VinGroup empire ranges from hotels to hospitals, VinFast is opening factories in North Carolina, Indonesia, and India,” Time said.

VinFast: The EV Disrupter

Besides its rapid expansion rate, VinFast is considered a “disrupter” in the electric vehicle industry because of its groundbreaking sales strategies. TIME Magazine highlights the “unique” nature of VinFast’s battery subscription electric vehicle business model. This innovative approach is seen as a potential driver of growth for the Vietnamese manufacturer.

VinFast’s battery subscription policy separates the battery cost from the car price, making electric vehicles more affordable for a wider range of consumers. Additionally, the company offers free battery replacement when capacity diminishes, further reducing the long-term ownership costs. This customer-centric approach has been met with positive reception, as it addresses a major barrier to electric vehicle adoption: upfront costs.

Despite the challenges facing the broader electric vehicle industry, VinFast remains steadfast in its growth trajectory. The company has set a bold target of delivering 100,000 vehicles in 2024, a threefold increase from current sales. This ambitious goal is backed by plans to expand its global presence, targeting markets from the U.S. and Canada to those closer to home like Thailand, the Philippines, and Indonesia.

Dr. Tran Dinh Thien, former Director of the Vietnam Institute of Economics, views VinFast’s inclusion in TIME’s list of the 100 Most Influential Companies as a significant milestone, not only for the company but also for Vietnam. He highlights the recognition as a testament to VinFast’s maturity and its ability to navigate the global automotive landscape.

“VinFast may not yet be a household name worldwide,” Dr. Thien observes, “but their approach to market challenges and their willingness to embrace the global competitive arena are truly commendable.”

This unwavering determination is further fueled by the strong support of VinFast’s founder and CEO, Pham Nhat Vuong. Recently, he pledged an additional $1 billion from his personal assets to support VinFast’s growth, underscoring his commitment to building a pioneering electric vehicle company and propelling Vietnam’s automotive industry onto the global stage.

As Mr. Vuong stated at VinFast’s shareholder meeting in April, “I will never give up on VinFast.” This unwavering commitment, coupled with innovative strategies and strategic expansion plans, positions VinFast as a disruptor in the electric vehicle industry, poised to reshape the automotive landscape for years to come./.