The classic saying of the business world is “sell what people need, not what you have.” However, Vietnamese richest man billionaire Pham Nhat Vuong is going against this classic business philosophy. This means that VinFast is committing “suicide.”
So what do people need from VinFast cars? Their durability, safety, reliability, and after-sale. So does VinFast meet the real needs of customers? The answer is no.
To build a brand, one must do how to create compliments from customers who have owned the product. There are brands that do not need to spend money on advertising, but they use word of mouth. That is, they let the praise spread on its own, creating a solid position in the hearts of customers.
Tesla company of billionaire Elon Musk is known as an American electric car company that has never spent money on marketing. And so far, everything in this company is still very good. Currently, Tesla’s value is higher than other long-standing car brands such as Ford, General Motors (GM), Fiat-Chrysler (FCA) and Daimler.
The way of brand promotion “natural musk flavor” is the opposite way of promoting the brand by exploding the truth. Nguyen Tu Quang once exaggerated about Bphone, but then Bphone brand sank. Pham Nhat Vuong’s VinFast car has so far followed the same method as Quang. But Vuong is more skilled than Quang. He Mr. Vuong did not explode on his own products, but he manipulated the media, forcing Vietnam’s state-controlled media to explode on his behalf.
Recently, on May 12, VinFast officially announced that it would list in the US and value the business at more than $23 billion. However, information from VinFast does not indicate a specific listing date, only stating in general that, “the transaction is expected to close this year after receiving approval from regulators and shareholders as well as other customary fulfillment conditions.”
The high valuation of a business without a stock offering is only an estimate. It is for reference only. However, the high valuation is also a way to get potential investors’ attention. So no one undervalues their own business.
Last year, Vietnam’s press was also buzzing about the value of VinFast after listing. At that time, VinFast estimated the value of their business to be up to $50 billion, not $23 billion as it is now. For which reasons VinFast lowered its price by more than half? Perhaps, due to the past time, VinFast has left too many scandals.
At least seven American news sites on May 12 posted that their reporters had tested VinFast VF8 for the first time, in real conditions in the US, and had negative reviews that the car has a lot of problems to fix. MotorTrend page headlined “Riding VinFast VF8 for the first time: Please return the sender.” The R&T page posted “First time driving: VinFast VF8 2023 not acceptable“. InsideRs page posted the news “First time evaluation of driving VinFast VF8 2023 City Edition: Wow!” Green Car Reports page: “Don’t buy VinFast VF8 2023 City Edition“.
These are very negative assessments, which will affect the decisions of potential investors towards VinFast’s shares. Should it be assessed, the valuation for the post-listing company that can reach $23 billion is too exaggerated.
In the US, Tesla uses the quality of the car to let customers know about word of mouth. They have to be very confident about the quality to do it this way. As for the quality of VinFast, using this method, the company has long since died. It is because the quality is not good that it needs to be promoted, it needs to be crowded, to attract customers. However, in advertising, it only needs to be exaggerated, but if it is too exaggerated, it can cause a backlash.
When buying a new product that people have never used, usually, people will understand from the reviews of people who have used it. With VinFast, many owners of this car from home to abroad complained. Therefore, it is very difficult for VinFast to stay in the US.
Thoibao.de (Translated)
