The Aussies behind Vietnam's first car-maker

Australian automotive industry workers who lost their jobs when the local car industry shut down are playing a crucial role in the establishment of Vietnam’s first car company, VinFast.

Launched at the Paris motor show this week, VinFast was the surprise talking point of a low-key day, unveiling soccer superstar David Beckham as its global ambassador.

Beckham was on-stage to inspect concept versions of the first two vehicles VinFast will launch in Vietnam in September 2019, the LUX A2.0 sedan and LUX SA2.0 SUV.

VinFast also has zeroed in on regions it plans to export to starting in 2020, but won’t name them publicly.

Australia is on its radar, although no plans have been confirmed as yet.

VinFast’s first two models are based on BMW architectures and drivetrains supplied under license. Even though they are rebodied, their relationship with the 5 Series and X5 is obvious.

VinFast is part of the Vingroup, Vietnam’s largest privately held business, with assets valued at up to $35 billion.

The owner is a Russian-educated Vietnamese Pham Nhat Vuong, who began his business career selling noodles in the Ukraine. He made his first fortune when he sold that business to Nestle for $150m and then returned home 25 years ago to establish the Vingroup.

The multi-faceted corporation with interests in real estate, the health industry and education, is reported to have invested up to $3.5 billion in VinFast.

VinFast has been in existence less than two years. A green-field manufacturing site is currently under construction on the edge of Haiphong Harbour which will have an annual volume capacity of 250,000 units.

VinFast’s vice-president of planning and program management, Englishman Roy Flecknell, said Australian expertise had proved critical in the build-up of VinFast’s manufacturing and engineering capacity.

“They bring massive talent and experience to the business,” he said. “We have clearly benefitted from all those OEMs leaving Australia.

“It is sad that happened, but we have benefitted from it.”

It’s also noticeable that VinFast has a significant number of former General Motors employees among its senior staffers.

CEO James DeLuca, director of designer Dave Lyon, Flecknell, engineering vice-president Kevin Fisher and the most senior Australian employed on the project, vice-president of manufacturing Shaun Calvert, are all ex-GM.

Calvert worked at Holden’s Elizabeth plant in Adelaide until a year before it shut down in November 2017. Ford shut its Australian operations in 2016 and Toyota closed down around the same time as Holden.

“We’ve also got some Koreans and some guys from Europe and the US, but we have got a lot from Australia,” Flecknell said.

Flecknell suggested the Australians had learned a fair bit from working for VinFast as well as imparting knowledge.

“When you work for Toyota, Ford or GM, it’s very global, very regimented and very rigid. They are able to come and use all their experience and think about ways of doing things differently.

“It’s amazing how creative you can be and do things differently and still create good quality products.

“They have it refreshing to do something different rather than follow the Ford, GM or Toyota global process, which is very, very rigid.”

Both VinFast models will be powered by 2.0-litre turbo-petrol engines offered in 130kW and 170kW tunes mated with an eight-speed ZF automatic transmissions. Rear-wheel drive is standard, with all-wheel drive optional for the SUV.

The LUX A2.0 will take on the Toyota Camry as its primary competition in Vietnam, while the LUX SA2.0 will line up against the Toyota Fortuner.

Their interior and exterior styling has been completed by Pininfarina under Lyons’ direction after more than 60,000 members of the Vietnamese public voted to select their favourite preliminary sketches.

Beyond these two vehicles, VinFast plans to offer a city-car licensed from GM and built at a former GM plant in Hanoi. It has developed an eScooter range and promise to unveil both a battery-electric vehicle and eBus in 2019.