Vietnam’s foray into the car business with its own brand comes at a cost to its manufacturer - no initial profit.
“We don’t take profit. So right now we’re still losing money on cars we sell,” Le Thi Thu Thuy, chairwoman of VinFast, Vingroup’s auto unit, said in an interview at the Bloomberg Asean Business Summit in Bangkok on Friday.
VinFast marked the roll out of its first vehicles on June 14 as it looks to tap into the one of the world’s fastest-growing economies. To attract brand-conscious Vietnamese consumers - and compete with giants such as Toyota Motor, Ford Motor and Honda Motor - the company is offering its first line of cars at (competitive) cost, Ms Le said.
Vingroup will continue to subsidise its car business for two to five years, according to her. “With the next models of cars and optimisation of our operations, we can bring the cost down,” she said.
Its first batch of cars include a hatchback named Fadil, which sells for around $16,950 (Dh62,260), a sedan priced at $42,493 and a sports utility vehicle that goes for $60,734.
“We started the company with the domestic market in mind,” said Ms Le, who is also Vingroup’s vice chairwoman. “We see very low car penetration in Vietnam right now. It’s 10 per cent of what it is in Thailand. It’s huge market potential if you can get to Thailand’s level in next few years.”
Vietnam’s motor-vehicle sales rose 16.3 per cent in May from a year ago, according to data from Vietnam Automobile Manufacturers’ Association.
UAE currency: the story behind the money in your pockets
Company profile
Company name: Nestrom
Started: 2017
Co-founders: Yousef Wadi, Kanaan Manasrah and Shadi Shalabi
Based: Jordan
Sector: Technology
Initial investment: Close to $100,000
Investors: Propeller, 500 Startups, Wamda Capital, Agrimatico, Techstars and some angel investors
How Apple's credit card works
The Apple Card looks different from a traditional credit card — there's no number on the front and the users' name is etched in metal. The card expands the company's digital Apple Pay services, marrying the physical card to a virtual one and integrating both with the iPhone. Its attributes include quick sign-up, elimination of most fees, strong security protections and cash back.
What does it cost?
Apple says there are no fees associated with the card. That means no late fee, no annual fee, no international fee and no over-the-limit fees. It also said it aims to have among the lowest interest rates in the industry. Users must have an iPhone to use the card, which comes at a cost. But they will earn cash back on their purchases — 3 per cent on Apple purchases, 2 per cent on those with the virtual card and 1 per cent with the physical card. Apple says it is the only card to provide those rewards in real time, so that cash earned can be used immediately.
What will the interest rate be?
The card doesn't come out until summer but Apple has said that as of March, the variable annual percentage rate on the card could be anywhere from 13.24 per cent to 24.24 per cent based on creditworthiness. That's in line with the rest of the market, according to analysts
What about security?
The physical card has no numbers so purchases are made with the embedded chip and the digital version lives in your Apple Wallet on your phone, where it's protected by fingerprints or facial recognition. That means that even if someone steals your phone, they won't be able to use the card to buy things.
Is it easy to use?
Apple says users will be able to sign up for the card in the Wallet app on their iPhone and begin using it almost immediately. It also tracks spending on the phone in a more user-friendly format, eliminating some of the gibberish that fills a traditional credit card statement. Plus it includes some budgeting tools, such as tracking spending and providing estimates of how much interest could be charged on a purchase to help people make an informed decision.
* Associated Press
How to increase your savings
- Have a plan for your savings.
- Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
- Decide on a financial goal that is important to you and put your savings to work for you.
- It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
A Dog's Journey
Directed by: Gail Mancuso
Starring: Dennis Quaid, Josh Gad, Marg Helgenberger, Betty Gilpin, Kathryn Prescott
3 out of 5 stars
The team
Photographer: Mateusz Stefanowski at Art Factory
Videographer: Jear Valasquez
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory
Model: Randa at Art Factory Videographer’s assistant: Zanong Magat
Photographer’s assistant: Sophia Shlykova
With thanks to Jubail Mangrove Park, Jubail Island, Abu Dhabi
