DOES VIETNAM NEED VINFAST?
Vietnam has a population of 91 million, but the average annual wage is just £2300. Not, you would think, the ideal demographic for launching a pair of Bmwbased upmarket vehicles.
But Vinfast has already identified a rising domestic middle-class that can afford its modern apartment blocks and fee-paying schools. So they might well buy a Bmw-based national car, instead of a more expensive Mercedes. And who would underestimate the demand for electric scooters?
After seeing the scope of the new plant and the no-expense-spared factory equipment, it’s tempting to think Vinfast may well have its eye on contracts to build, say, superminis for the highcost European market.
Likely to pay wages of £400-£630 per month, Vinfast has a cost advantage over European factories; this year, Skoda workers in the Czech Republic got a 12% pay increase, pushing monthly wages beyond £1500. That could give Vinfast an edge to win over European buyers.