Ford Vietnam continues to hit top gear

Laurent Charpentier

Vietnam’s automobile sales in September were reported to rise 10 per cent year-on-year with stronger predictions that the market will continue a pick-up in the final months of the year. In this positive trend, Ford Fiesta remains one of the best selling cars since its launch in Vietnam several months ago. VIR’s Song Ngoc talks with Laurent Charpentier, managing director of Ford Vietnam, about the company’s moves to further stir up the Vietnamese market.

Ford’s announced ‘One Ford’ plan focuses on restructuring to achieve better operating profitability, developing new products and improving its balance sheet worldwide. How has this plan benefited Vietnamese consumers and helped Ford Vietnam increase its market share?

Under ‘One Ford’ plan, we will introduce eight new Ford products within five years that customers want: latest and smart technology, fuel efficiency, safety with a modern design. And we hope that under ‘One Ford’ plan, we think this ambitious launch plan along with a high level of customer satisfaction will drive the performance up.

The success of Ford Fiesta launched in May 2011 with more than 1,000 cars sold after four months only says all about our ambition in the Vietnamese market. Ford Fiesta is a typical evidence that ‘One Ford’ plan is effectively working.

Our customers in Vietnam like our customers around the world feel the difference that this small car brings them, ie smart technology, fuel efficiency and a high level of safety.
Especially by using social media means, our new marketing approach, Fiesta has been achieving success in getting closer to younger and connected Vietnamese car lovers.

Is using social media really a new business strategy for Ford Vietnam in launching new products?

The world has changed and the way we are communicating today has gone a notch further into the “Online World”. Vietnam is undoubtedly one of Asia’s fastest growing economies with a very growing young population. Understanding these trends is key to get in touch with our customers and attract first time buyers in Vietnam.

We have developped a Facebook account for Fiesta, making friends with other auto forums such as OtoSaigon in Ho Chi Minh City and OtoFun in Hanoi to access and raise awareness about the Ford brand in general, and Ford Fiesta in particular. Therefore, Ford wants to establish a sustainable connection with our target customers, who are young, dynamic and successful.

We want to get connected and keep the line with our customers in a very open manner, and this has had a great impact on our organisation. The team is totally customer-oriented and understands that the customer wants and needs quick answer to his questions and sincere answers to his concerns. This is what my team is doing and it is not always easy.
 
GM Vietnam, another US-backed auto-maker, last week also started launching its best selling Chevrolet in Vietnam. How do you see this new competition?

Yes, GM is definitely a heavyweight but not the only one competitor. Japanese and Korean brands are also aggressively working to reach more customers. Generally speaking, Vietnam’s automobile market is absolutely very competitive. But the opportunities are huge here because the industry is forecasted to grow three folds of its current size within the next five to six years.

Ford recently announced large-scale investment expansion strategies in Vietnam’s rivalry markets such as Thailand and India. Why not Vietnam?

Ford has recently expanded a new manufacturing facility in Thailand. Thailand has become the main production base for auto exports in Southeast Asia but this investment is also benefiting our operations in Vietnam as the source of supply and other technical supports are now closer to us.
We see ASEAN as a whole market’s area where Vietnam has its role to play.

Ford has been in Vietnam for more than 15 years and we have attached special importance to the development of the company here. We  are still developing the team and investing reasonable budgets into the brand, the facility and the dealers network development to further expand our market share and building up a strong and loyal customers base.