VinFast, the first local car brand in Vietnam, signed and concluded an MOU with a solid-state battery manufacturer from Taiwan, ProLogium, in March to collaborate and set up a joint-venture that will manufacture solid-state batteries for electric vehicles in Vietnam.

impact analysis
 

VinFast is a well-known local car brand in Vietnam, and sales volumes of vehicle model FADIL ranked fifth in Vietnam in 2020. In addition, VinFast has implemented a lot of measures in recent years in the trade. Aside from setting up a joint-venture with ProLogium, it also obtained a self-driving permit in California in February, coupled with its previous acquisition of Lang Lang, an automotive proving ground in Victoria, Australia. Thus, it is obvious that it intends to position itself as a global brand. It has also been turned into a rather coveted target of Foxconn, which has actively been developing in the electric vehicle business. From a global perspective, though VinFast remains far from being a competitor of traditional automobile manufacturers, its rapid rise to the extent it has has suggested the emerging market of electric vehicles is quietly and silently reshuffling the global automobile industry.

       

Although Taiwan's supply chain is intensely fierce and has been operating in the automobile market for a long time, its performance is not particularly outstanding compared to some consumer products. Some manufacturers have even indicated that it has become harder to achieve profits in recent years due to the intensity of the competition. On the other hand, even if the application of electric vehicles has not, in essence, changed consumer demand for mobility, the difference in technology and the advantages it brings along with the wave of smart cars has provided an opportunity to break loose from the existing competitive landscape. As for the MIH Electric Vehicle Open Platform Alliance, which Foxconn calls upon to set up to trade, it should help reverse the previous narrative that Taiwanese manufacturers relied on to sustain their supply chains on their own for automotive products. At this time, this is an excellent opportunity for Taiwanese manufacturers to expand their influence in the automotive industry.