VinFast Takes Time to Think Long-Term Amid the EV Rush

VinFast is setting a new standard
for sustainable innovation in the electric vehicle (EV) industry. By
prioritizing long-term environmental impact over short-term gains, VinFast is
actively addressing the challenges of battery disposal and reuse, positioning
itself as a leader in the circular economy.

As the world transitions to EVs,
opportunities to enhance sustainability continue to emerge. While EVs are
widely recognized as a solution to global warming, the industry is actively
addressing areas for improvement, particularly in the lifecycle management of
EV batteries. In this evolving landscape, the Nasdaq-listed VinFast is carving
out a distinctive role—not just as a carmaker but as a forward-thinking leader
dedicated to advancing sustainability.

This dedication to sustainability
is evident in VinFast’s partnership with Marubeni Corporation, a prominent
Japanese trading group. Together, they are addressing one of the EV industry’s
most pressing questions: what happens to batteries when they are no longer fit
for use in vehicles?

Under a Memorandum of
Understanding (MOU), VinFast supplies used EV batteries, while Marubeni uses
advanced technologies to recycle them into Battery Energy Storage Systems
(BESS), which store excess renewable energy for use during peak demand. By
bypassing traditional challenges such as disassembly and repackaging, this
process transforms spent batteries into cost-effective energy solutions. The
dual benefits of this approach—reducing waste and improving grid
stability—align seamlessly with VinFast’s sustainability goals.

For VinFast, this initiative is
far more than a technical solution; it reflects a bold, long-term vision rooted
in environmental stewardship. The collaboration marks a big step toward
establishing a circular economy model, an
approach rarely seen in the business world, which sometimes focuses on quick
market wins.

Sustainability for VinFast,
however, is not confined to battery recycling. At its production facility,
wastewater is treated and reused for irrigation and cleaning, reducing reliance
on freshwater sources. The company’s recycling programs have also achieved
remarkable success, with a 58% increase in recycled waste between 2022 and
2023. These initiatives demonstrate VinFast’s comprehensive commitment to
minimizing its environmental footprint.

VinFast’s battery subscription
model further exemplifies its circular economy philosophy. When an EV battery’s
capacity drops below 70%, it is replaced and repurposed, either as part of the
BESS program or through collaborations with global recycling leaders. This
ensures that even as EV adoption grows, the environmental impact of battery
waste remains minimal.

VinFast’s ability to marry environmental
responsibility with business success is evident in its rapid growth. By October 2024, it became Vietnam’s best-selling
automotive brand for the first ten months, surpassing foreign competitors.

While VinFast dominates its home
market, its ambitions extend globally. Recent
expansions into the Middle East showcase the company’s adaptability and
alignment with global sustainability goals. As countries in the region
intensify investments in renewable energy as part of a broader green
transition, they present a natural synergy with VinFast’s environmentally
focused agenda.

This global growth is driven by
Vingroup, VinFast’s parent company and a leader across diverse industries.
Vingroup’s vision is clear: to position Vietnam as a global trailblazer in
sustainable development.

That vision has already yielded
remarkable results. Thanks to VinFast, Vietnam is now among the few nations
where an EV manufacturer has overtaken gasoline-powered brands in market
leadership—a milestone achieved in just two years following its transition to a
pure EV strategy. This accomplishment not only underscores VinFast’s rapid rise
but also cements Vietnam’s position on the global EV map.