The First Customers Receive VinFast’s VF 5, Priced At $19,500, Batteries Not Included
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VinFast turned over the first batch of VinFast VF 5 smart electric vehicles to its new owners in simple ceremonies at dealers and luxury malls all over Vietnam.
The concept of the economy EV was first introduced in January 2022 at the Las Vegas Consumer Electronics Show (CES), and later the same year at the Paris International Auto Show. The intention for the affordable, compact VF 5 was to meet the needs of Vietnam’s domestic market.
Automotive experts and journalists in Vietnam, commenting on a post about its release, say that the VF 5 was “rushed” because of the expected influx of Chinese EVs to the country. Early this year, BYD was reported to have ‘explored’ tie-ups in Vietnam to set up a plant in the Northern part of the country. BYD, however, said Vietnam is one of three places in the ASEAN region to locate its factory. Meanwhile, China’s Wuling Hongguang Mini EV is set to be assembled and sold in Vietnam later this year.
“We know that the Vietnamese low-cost EV market will expand. We also expect that many Chinese brands are coming in to sell or to assemble their vehicles here in Vietnam. Like in many other countries in Asia, the market may be flooded with super cheap EVs although quality of these vehicles are unknown to the market. Also, there is the issue of after sales service which is really important to the Vietnamese market,” a source at VinFast engineering told CleanTechnica.
The VF 5 is a strategic model introduced alongside another VinFast vehicle, the VF 7. It is number four in VinFast’s EV lineup, which is now present in all the important market segments. The VF 8 has already been introduced and is the company’s first global model. Within the next few months, the large SUV VF 9 will be delivered to customers in North America, after being turned over to customers in its home country.
The VF 5 is an interesting story, because early as 2019, the planning of the vehicle was to create a domestic EV only. The market study behind it determined the size of the typical Vietnamese family is four. Studies were done to include measurements of the height and weight index to make the car with such a compact footprint. Studies also revealed that a compact SUV will work well, versus a sedan or hatchback, with the growing sophistication in the market. The local price for the VF 5 is VND 538 million (approximately $22,900) battery included.
The car’s price goes down to VND 458 million (approximately $19,500) when the battery cost is excluded. This is because unlike habits in the North American market, the Vietnamese market is fine with “batteries not included” when buying the car. There will, however, be a monthly fixed battery subscription fee of VND 1.6 million (approximate US$68). That does not include charging costs.
However, in the whole ASEAN region, Vietnam has a low average electricity price, compared even to that of more advanced nations. It is also increasing its renewable energy mix to reduce dependence on coal by 2030. VinFast also has over 150,000 charging ports for electric cars and scooters throughout the country.
Comparatively, the popular compact hatchback Toyota Yaris is about VND 693 million (~$29,500) and the segment equivalent Ford Ecosport is VND 830 million (about $35,000).
It was first introduced in December 1, 2022 through a social media campaign where VinFast sales agents started to post information about the new vehicle, intended as mass market EV. Within 9 hours after the posts were made, over 3,000 reservations, with a VND 10 million ($450) deposit, were received and about 2,400 (80%) were converted to preorders with a required down payment.
VinFast attributes this impressive response to both the intended pricing (officially announced only in January 2023) and the features of the VF 5, as well as the very positive response on the VinFast e34, another exclusively domestic EV.
What could be most impressive in the introduction of the VF 5 is the time from reservation to production. It took VinFast’s Hai Phong factory to deliver the car to the customer in only four months.
“The shortening of the time from reservation to delivery to only four months demonstrates VinFast’s strong commitment to its customers. This reflects not only “Trust” and “Speed” in Vingroup’s core values, but also affirms VinFast’s outstanding capacity in vehicle development, process and resource optimization,” Madam Le Thi Thu Thuy, Vingroup Vice Chairwoman and CEO of VinFast Holdings said.
VinFast’s press information about the VF 5 (the particular variant that was released in the Plus) describes it as possessing “a modern, youthful, stylish design with 35 interior and exterior color mixes, ensuring personalization satisfying every customer’s lifestyle, personality, and preferences.”
The VND 458 million price tag comes complete with smart features such as Self-diagnosis; Intrusion Alert; Vietnamese Q&A with the Virtual Assistant; Over-the-air Updates; Standard Cruise Control; Door Open Warning; Rear Cross Traffic Alert; Blind Spot Detection; and Rear Parking Assist.
In terms of performance, the VF 5 Plus features an electric motor that packs 100 kW of maximum power, 135 Nm of maximum torque, and a 37.23 kWh lithium battery pack, enabling a driving range of more than 300 km per every full change (NEDC.)
The after-sales package includes a 7-year (or 140,000-km) warranty policy (whichever comes first), 24/7 Mobile Charging, 24/7 Mobile Service, 24/7 roadside assistance, nationwide “non-stop” service workshop system, and much more. An extensive system of VinFast’s stores and service workshops together with dealers’ service is found in 63 provinces and cities all over the country.
“I believe that along with the VF e34, VF 8, and VF 9, already sold on the market, the launch of the VF 5 Plus will provide customers with additional choices that suit the needs of the majority, thereby encouraging consumers to switch to electric vehicles and contributing to a sustainable future for all,” Thuy concluded, while highlighting how the VF 5 is crucial in VinFast’s efforts to promote the adoption of electric vehicles among consumers and drive the transition towards greener mobility in Vietnam.
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