VinFast Launches FGF for EV Sales

VinFast Launches FGF for EV Sales

Lina Alves
2 min read

Vietnamese Business Magnate Launches FGF Trading to Boost Domestic EV Market

Vietnam’s VinFast Auto Ltd. founder, Pham Nhat Vuong, has unveiled a new enterprise, FGF Trading and Services JSC, with a focus on enhancing the domestic sales of VinFast’s electric vehicles (EVs). The newly established venture will encompass the sale of both new and pre-owned VinFast EVs to Vietnamese consumers, along with offering leasing options. Initially, FGF aims to lease between 1,000 and 2,000 EVs in key cities across Vietnam. This bold move is aligned with VinFast’s ambition to gain a competitive edge in the challenging EV market, where it has been facing hurdles in meeting sales targets. VinFast witnessed a delivery of fewer than 10,000 cars in the first quarter of this year, significantly falling short of its annual target of 100,000 vehicles. In the previous year, the automaker managed to sell 34,855 vehicles, primarily to affiliated parties. Notably, Vuong, holding a 90% stake in FGF, has registered capital of 200 billion dong ($7.86 million). Furthermore, VinFast has a history of selling vehicles to GSM Green and Smart Mobility JSC, a Vietnamese taxi firm where Vuong has a 95% stake.

Key Takeaways

  • Pham Nhat Vuong establishes FGF Trading to elevate domestic EV sales for VinFast.
  • FGF aims to lease 1,000-2,000 new and pre-owned VinFast EVs in major Vietnamese cities.
  • VinFast delivered under 10,000 cars in Q1 2024, significantly below its 100,000 annual target.
  • Vuong holds a 90% stake in FGF, with registered capital of 200 billion dong ($7.86 million).
  • VinFast sold 7,100 vehicles to GSM Green and Smart Mobility JSC, a taxi firm partly owned by Vuong.


The emergence of FGF Trading by Pham Nhat Vuong is poised to reinforce VinFast's presence in the domestic EV market, emphasizing the utilization of both new and pre-owned vehicles as well as leasing opportunities. This initiative serves as a response to VinFast’s underperformance in the competitive EV landscape, notably evidenced by the low deliveries in Q1 of 2024. While this strategy may stabilize short-term sales, the long-term scalability of FGF confronts substantial challenges. The success of FGF hinges on market acceptance and competitive pricing, with potential implications from Vuong's significant ownership in both FGF and GSM Green and Smart Mobility JSC, potentially presenting issues related to conflict of interest that could affect investor and consumer confidence.

Did You Know?

  • VinFast Auto Ltd.:
    • VinFast, a subsidiary of Vingroup, is a Vietnamese automaker that specializes in the production of electric vehicles (EVs), expanding its presence in the global automotive market.
  • Pham Nhat Vuong:
    • Pham Nhat Vuong, a prominent Vietnamese entrepreneur, plays a pivotal role in the economic growth of Vietnam through his diverse business ventures, including Vingroup and VinFast.
  • Electric Vehicles (EVs):
    • EVs, propelled by one or more electric motors and powered by rechargeable battery packs, are recognized for their environmental sustainability and can be charged using renewable energy sources.

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