A Shared Vision 'For A Green Future': The Contributions Of Vinfast, V-GREEN, And Xanh SM


(MENAFN- EIN Presswire)

VinFast, the Nasdaq-listed electric vehicle company, is at the forefront of the green revolution in Southeast Asia

VinFast (NASDAQ:VFS)

HANOI, VIETNAM, December 27, 2024 /EINPresswire / -- The "For a Green Future" ecosystem, centered around VinFast electric vehicles and integrating the strengths of VinFast, V-GREEN, and Xanh SM, aims to contribute to the electrification of the region's transportation sector. This innovative approach has attracted the attention of prominent foreign investors, suggesting significant potential for growth and transformative change within the industry.

VinFast, Xanh SM and V-GREEN: A Trifecta for a Green Future

Rapid urbanization and strong economic growth have intensified the need for environmental protection. Cities, the engines of development, are now bearing the brunt of pollution.

The urgent need for a sustainable transportation system has brought electric vehicles to the forefront. As zero-emission vehicles, EVs have the potential to revolutionize the sector. However, widespread EV adoption requires not only technological advancements but also systemic changes.

VinFast, the Nasdaq-listed electric vehicle company, is at the forefront of the green revolution. VinFast and billionaire Pham Nhat Vuong are dedicated to a holistic approach to electric mobility, encompassing not only vehicle manufacturing but also the development of robust charging infrastructure and innovative mobility solutions like Xanh SM ride-hailing services.

Furthermore, with a visionary approach, VinFast has made substantial investments in a robust electric charging infrastructure, solidifying its commitment to a sustainable future. VinFast's audacious plan to deploy a staggering 150,000 charging ports across 63 provinces and cities underscores its commitment to electrifying Vietnam.

VinFast has experienced significant growth in its charging network within Vietnam, with a nearly 75% increase in the number of charging ports in just one year. To facilitate further expansion, Mr. Vuong has spun off VinFast's charging station development division into a separate company, V-GREEN, with the aim of developing a robust global charging network for its electric vehicles.

While often overlooked in global discussions of green transformation, Vietnam is experiencing a burgeoning grassroots movement towards sustainable living. Tens of thousands of Vietnamese citizens are actively contributing to this shift by adopting eco-friendly habits. VinFast has accelerated this trend by delivering tens of thousands of electric vehicles, which are estimated to reduce CO2 emissions by 246,000 tons annually.

This number is being multiplied at lightning speed in 2024. In November 2024, VinFast delivered over 16,000 electric vehicles, bringing the total sales for the year to over 67,000 units in the domestic market. This record-breaking monthly delivery sets a new benchmark for the Vietnamese automotive industry.

Why Xanh SM and V-GREEN?

Southeast Asia is emerging as a promising market for electric vehicles on the global stage. The region's expanding middle class and growing environmental concerns are creating a conducive environment for electric vehicle adoption.

Nevertheless, capitalizing on this potential market presents a complex challenge. Automakers must demonstrate a long-term commitment and actively support consumers throughout the transition to electric vehicles. The potential rewards for pioneering this market are substantial.

VinFast's electric vehicle product line offers a diverse range of affordable urban vehicles, catering to the varied budgetary needs of Indonesian consumers. The company's three-pronged strategy, encompassing premium products, inclusive pricing, and excellent after-sales service, is further enhanced by attractive sales policies specifically designed for the Indonesian market, such as pioneering battery subscription and resale price guarantee programs.

However, Pham Nhat Vuong's entrepreneurial endeavors extend beyond vehicle manufacturing. Xanh SM, a ride-hailing service powered by electric vehicles, offers consumers a convenient and sustainable transportation solution. This innovative service enables individuals to participate in the green transformation by adopting electric mobility without the need for personal vehicle ownership.

V-GREEN, a subsidiary founded by Mr. Pham Nhat Vuong, will complete the final component of VinFast's green transportation ecosystem in Indonesia. The company is responsible for investing in VinFast's entire electric vehicle infrastructure, with the explicit goal of fostering a sustainable transportation ecosystem and accelerating the electric mobility revolution.

V-GREEN will serve as a critical partner in VinFast's global expansion. The development of comprehensive charging infrastructure is essential to address consumer concerns regarding charging availability and facilitate the widespread adoption of electric vehicles.

Announced on January 18, 2024, the Indonesian Ministry of Energy and Mineral Resources noted a total of 2,704 Public EV Charging Stations in 2023.
VinFast's vision has gained the confidence of prestigious foreign investors. Recently, V-GREEN and the multi-industry corporation Prime Group (UAE) officially announced a Memorandum of Understanding (MoU) to collaborate on the development of VinFast's electric vehicle charging station infrastructure in Indonesia.

According to the agreement, the two parties will collaborate on research and development initiatives, aiming to establish approximately 100,000 VinFast electric vehicle charging stations across Indonesia within the next three years. The total estimated investment for this project is up to $1.2 billion.

In the initial phase, V-GREEN will prioritize the development of charging stations in key areas such as Jakarta, Surabaya, Bali, and surrounding regions. The network will subsequently be expanded in subsequent phases. Given the high potential for electric vehicle adoption in these regions, they align with V-GREEN's expansion strategy in the Indonesian market, particularly considering VinFast's diverse range of urban electric vehicles.

The construction and development of charging stations will commence in January 2025, with the anticipated operationalization of select charging stations later that year.

Leveraging its extensive network of operations across the Middle East and Africa, Prime Group will utilize its robust financial resources and global network of partners to provide the necessary capital for the construction and development of VinFast's electric vehicle charging stations.

Concurrently, V-GREEN will proactively conduct market research to identify strategic locations for the establishment and operation of a comprehensive network of charging stations, thereby addressing the evolving needs of electric vehicle users in Indonesia.

The MoU marks a significant milestone for V-GREEN in its role as a strategic partner in the development of a global network of charging stations for VinFast electric vehicles. Furthermore, it affirms the confidence of renowned international enterprises in the green transportation ecosystem established by V-GREEN and VinFast, particularly within the high-potential Indonesian market.

Mai Phuong
VinFast
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