EDITORS DESK
There are many companies that claim to be disruptors, whether of the automotive industry, phone industry, or nearly any sector these days. It has become such a buzzword since the early inception of Uber and Tesla that so many are quick to adopt the label before any actual disruption is even being done.
Yet this past week, I think I’ve been in the midst of a true disruptor. Perhaps the most surprising thing is that I have not even heard the word “disruptor” spoken once.
This past week, I’ve been in Vietnam, hosted by VinFast, which is one of the world’s up and coming electric vehicle brands. Perhaps it’s more accurate to say that I’m a guest of Vin Group, the parent company of VinFast,as it’s not just VinFast doing the disrupting, but its many sister companies as well.
The Vin Group is perhaps one of the largest conglomerates in Vietnam with interests in real estate, big box retail, hospitality, education, healthcare, transportation, and several other industries I might have missed.
Yet it’s the Vin Group’s transport-related companies that I think have the potential to disrupt even the Philippines’ transport sector.
We’re already familiar with VinFast cars in our market, thanks to their sudden surge in popularity caused by the spike in fuel prices.
Some might be familiar with Green GSM, VinFast’s electric taxi company. Their blue-green cars are hard to miss on our roads and commuters are certainly delighted by their wide availability and cheap fares.
There are other Vin Group companies running quietly in the background too. First, there is V-Green, the company in charge of operating VinFast’s network of charging stations. It, too, plans to grow its network to offer not just the taxi driver more charging options, but also car owners, and soon, electric scooters owners more locations as well.
There is also Green Future, VinFast’s car and fleet rental service. Composed entirely of VinFast, they have been serving as our transport on call in Vietnam, and could soon have a much more visible presence in our country.
As such, with all these companies working together, it’s not surprising to learn that VinFast now enjoys the top spot in the Vietnamese auto market, overtaking even regional giants like Toyota. The same can be said of their position in the Vietnamese taxi and ride hailing industry, with Vin Group companies comparing favorably against regional giant, Grab.
Unlike many other auto industry disruptors that have been focusing on making a splash with an exceptional car model or two, VinFast, by contrast, has been focusing on the ecosystem. This way, consumers will encounter their product one way or another, whether as a passenger in their taxi, or rental cars, from receiving a package from their motorcycle courier service, or as an owner of their cars or motorcycles. These services are perhaps the best advertisement one company could ask for. What better way to promote your vehicle brand than with the sheer number of them on the road?
In a subtle way, their constant presence already puts to rest many doubts buyers would have about a new brand. Are they a good buy? The sheer number of these cars on the road seems to suggest so. Are spare parts and service readily available? Again, the sheer number still running on the road seems to suggest so. What about longevity and residual value? If taxi and car rental companies are using them, they must be practical for business. After all constant operation and minimal downtime are prerequisites.
It calls to mind some car buying advice my Dad once gave me years ago. “Don’t be turned off when a particular car model becomes a taxi. You should be even more interested.” This means that particular car is practical, efficient, and with so many taxi companies using them, will always have parts on stock. If my Dad were still around today, I don’t doubt that a VinFast would be the top choice for his next car, if he saw how many of them were running on the streets. He had the right idea all along, and so too does VinFast.
(Iñigo S. Roces is the editor of Manila Bulletin’s Motoring section)