VinFast's logistics strategy for rapid parts delivery and operational excellence in Europe and ASEAN

For any automotive brand – especially new entrants – the customer experience does not end at the point of sale. Aftersales service, notably parts availability and swift delivery, has become a crucial differentiator in a competitive market. VinFast is tackling this head-on with a promise of 24-hour parts delivery across Europe in critical emergencies. VinFast tells Automotive Logistics: “To provide an exceptional experience for our customers after purchasing VinFast EVs, we are preparing our operations to ensure 24-hour delivery parts across Europe in critical vehicle-off-road emergencies. To achieve this, all processes are being carefully reviewed and optimised.”   

This initiative aims to ensure that vehicle downtime is minimised and customer confidence is bolstered. 

Adding to the company’s multifaceted logistics approach, VinFast is optimising its processes by reengineering order management by prioritising cargo weight and dimensions. In doing so, the automotive manufacturer is maximising the efficiency of express delivery services offered by its logistics partners. Moreover, it is strategically investing in logistics hubs across key European markets for a holistic service offering. “The strategic placement of logistics hubs in Europe plays a vital role,” the company shares. “VinFast is focused on launching new hubs across Europe to further reduce delivery times from parts storage locations to showrooms and customers.”  

The company adds: “The combination of strategically located distribution centres and strong partnerships enables us to provide competitive delivery times, promptly meet customer needs and enhance the quality of our aftersales services throughout the continent.” 

As Automotive Logistics has noted in its past coverage on emerging aftersales strategies, robust service networks are becoming indispensable for automotive OEMs seeking to differentiate themselves in a saturated market.  

The return to ro-ro 

VinFast’s logistics evolution extends beyond aftersales services into its core shipping strategies. Its shipping strategy, particularly the pivot from cars-in-container (lo-lo) back to roll-on/roll-off (ro-ro) services, is a telling sign of changing dynamics in global automotive logistics. During its initial European foray, VinFast – like many of its competitors – faced global scarcity in ro-ro capacities. The reluctance of ro-ro service providers to call at northern Vietnamese ports forced a temporary shift toward container-based shipping methods.

VinFast explains: “Our entry into the European market coincided with a period of global scarcity in ro-ro capacities. Additionally, many ro-ro providers were initially reluctant to call at the ports in northern Vietnam, such as Haiphong. This forced us, like many competitors, to switch to container-based or lo-lo shipping methods.” 

Containerisation, while reliable under certain conditions, introduced significant coordination complexities between container and ro-ro ports. This operational friction led to increased lead times and a host of logistical challenges and demand. Recognising these inefficiencies, VinFast undertook a strategic recalibration by returning to its traditional ro-ro shipping model.  

“Today, we are once again leveraging the proven ro-ro shipping method, which simplifies our supply chain while enhancing the efficiency and reliability of vehicle transport to Europe,” VinFast shares.  

Ro-ro shipping offers a simplified and more flexible method for transporting vehicles with its inherent advantages, such as reduced handling times and lower risk of cargo damage. Automotive Logistics has highlighted how a resurgence in ro-ro services is gaining momentum across the industry as shipping lines adjust capacities and explore innovative service routes. For example, coverage on the roro capacity crunch explains that as traditional roro vessels fall short of meeting rising demand, OEMs are increasingly opting for containerised shipments. In response, logistics providers and shipping lines are enhancing vessel loading strategies and route planning to better manage these capacity constraints. Additionally, Ceva Logistics has secured longterm leases for new dualfuel roro vessels to boost capacity, while Chinese OEMs are deepening the vertical integration of their export logistics by expanding dedicated roro fleets.  

VinFast’s switch back to ro-ro positions the company to capitalise on more balanced capacity dynamics. This move could reduce overall supply chain complexity while enhancing reliability in vehicle transport – a strategic advantage in an increasingly competitive European market. 

Embracing sustainability 

While operational efficiency is a top priority for VinFast the company’s logistics transformation is equally informed by its commitment to sustainability. As global environmental concerns mount, automotive brands are under increasing pressure to minimise their carbon footprints. VinFast notes: “Sustainability is at the core of our logistics strategy, and we are committed to reducing the CO2 footprint of our supply chain by prioritising our cooperation with well-known and well-established logistics providers who have more possibilities to reduce carbon print by providing more sustainable means of transportation and minimising mileage.”  

This sustainable approach is not only beneficial for the environment; it is a strategic decision that dovetails with broader market trends. By partnering with logistics firms that offer greener transportation options, VinFast is poised to reduce mileage and optimise energy use, leading to both economic and ecological benefits. Automotive Logistics past coverage has underscored the critical role of decarbonisation in modern supply chains, noting that sustainability is becoming a central agenda for automotive OEMs worldwide.  

Aligning logistics operations with sustainability goals also serves a dual purpose: it enhances brand reputation and meets the growing expectations of environmentally conscious consumers. 

Strategic implications for the ASEAN and European markets 

The strategic decisions VinFast is making are particularly significant when viewed against the backdrop of the ASEAN and European automotive landscapes. In ASEAN – a region characterised by rapid economic development and evolving infrastructure – the emphasis on efficient, customer-focused logistics can serve as a blueprint for growth. Meanwhile, in European markets, where operational excellence and high customer expectations are high on the agenda, VinFast’s dual focus on rapid parts delivery and optimised shipping methods is a timely response to competitive pressures. 

Emerging trends in the automotive industry indicate that traditional silos between production, delivery and aftersales service are gradually dissolving, a shift exemplified by General Motor’s efforts to drive a cultural change to ensure that aftersales service receives attention equal to production, integrating technology and fostering internal collaboration to enhance customer care. Similarly, VinFast’s integrated model – melding localised service networks with agile shipping strategies – illustrates a forward-thinking approach that emphasises both operational resilience and customer satisfaction.  

In the ASEAN context, the ability to swiftly adapt to market demands while maintaining cost-effective operations could position VinFast as a leader in both production and distribution. In Europe, where the market is mature and competitive, the company’s investments in logistics hubs and sustainable practices could offer a significant competitive edge.