Ford Vietnam has marked a significant milestone in its three-decade journey in the Southeast Asian nation by unveiling its first electric vehicle (EV), the Mustang Mach-E, alongside a new edition of the Ford Territory. The launch not only signals the company’s pivot toward sustainable innovation but also underscores the deepening economic and strategic partnership between Vietnam and the United States. As Vietnam pushes for industrialization and a green transition, Ford’s latest move positions it as a key player in the country’s evolving automotive landscape.
A Milestone for Ford and Vietnam’s Economy
Ford Vietnam’s introduction of the Mustang Mach-E, boasting a 550 km EV range and advanced driver assistance technology, represents a bold step into the future of mobility. Paired with the updated Ford Territory, which offers enhanced design and connectivity, these models are set to hit the Vietnamese market by late September 2025. This launch builds on Ford’s long-standing presence in Vietnam, where it has been a major contributor to the national economy since its initial investment in 1995.
Over the past 30 years, Ford has invested heavily in Vietnam, starting with over $200 million to become the largest and only US foreign direct investor in the country’s automotive sector at the time. By 2022, the company further committed $82 million to expand its manufacturing plant in Hai Duong province, tripling its production capacity to 40,000 vehicles annually. Today, the factory employs more than 1,200 workers, with 90% being local hires, while its network of 56 dealerships and branches generates approximately 7,000 direct and indirect jobs across the country. 
Speaking at the unveiling ceremony, Ruchik Shah, managing director of Ford Vietnam, emphasized the company’s enduring commitment to the market. He noted that this 30-year milestone serves as a foundation for future innovations, with a focus on product development, service enhancement, and community engagement to support Vietnam’s socio-economic growth.
Strengthening Bilateral Ties
The significance of Ford’s presence extends beyond economics, reflecting the broader transformation of Vietnam-US relations. Since the normalization of diplomatic ties in 1995, the relationship has evolved into a Comprehensive Strategic Partnership, encompassing cooperation across multiple domains. Ford Vietnam, as the only major American automobile manufacturer investing in the country, stands as a symbol of this progress.
US Ambassador to Vietnam Marc Knapper highlighted this connection at the event, stating that Ford’s journey mirrors the extraordinary shift in bilateral ties over the past three decades. He pointed out that the company’s continuous investments underscore Vietnam’s growing importance not only to Ford but also to American businesses across various sectors. This perspective aligns with the broader narrative of Vietnam as an emerging hub for foreign investment in Southeast Asia, driven by its strategic location, young workforce, and government policies favoring industrial growth.
Deputy Minister of Foreign Affairs Dang Hoang Giang echoed this sentiment, praising Ford’s contributions to Vietnam’s automotive industry and overall economy. He cited the company as a prime example of strengthened trade and investment ties between the two nations, noting its role in boosting GDP, creating jobs, and supporting the domestic supply chain. Giang urged major corporations like Ford to further expand their investments, bringing advanced technologies and modern management practices to propel the automotive sector forward.
Aligning with Vietnam’s Green and Digital Goals
Vietnam’s national agenda includes ambitious goals for digital transformation and a green transition as part of its broader industrialization and international integration strategy. Deputy Minister Giang specifically encouraged Ford to contribute to these priorities, aligning the company’s innovations with the country’s vision for sustainable development. The launch of the Mustang Mach-E, Ford’s first EV in Vietnam, appears to be a direct response to this call, positioning the company at the forefront of the nation’s shift toward cleaner transportation options.
The introduction of electric vehicles comes at a critical juncture for Vietnam, where rapid urbanization and industrial growth have heightened the need for sustainable solutions. Air pollution in major cities like Hanoi and Ho Chi Minh City has become a pressing concern, prompting government initiatives to promote renewable energy and reduce carbon emissions. By entering the EV market, Ford not only caters to a growing demand for eco-friendly vehicles but also supports Vietnam’s long-term environmental objectives.
Moreover, Ford’s emphasis on advanced technology and connectivity in models like the Ford Territory aligns with Vietnam’s push for digital transformation. As the country seeks to modernize its industries and infrastructure, partnerships with global corporations that bring cutting-edge solutions are increasingly vital. Ford’s role in this context extends beyond manufacturing, serving as a conduit for technological transfer and skill development among local workers.
A Bridge for Deeper Cooperation
Beyond its economic impact, Ford Vietnam plays a diplomatic role in fostering Vietnam-US relations. Deputy Minister Giang expressed hope that the company would continue to act as a bridge, supporting efforts to address reciprocal tariff issues and advocating for Vietnam’s recognition as a market economy. Such recognition, long sought by Vietnamese officials, would enhance the country’s global trade standing and attract further foreign investment.
This advocacy is particularly significant given the evolving dynamics of international trade in the region. Vietnam has emerged as a key player in global supply chains, especially as companies diversify away from traditional manufacturing hubs. Ford’s presence reinforces Vietnam’s appeal as a stable and competitive investment destination, while its engagement with local and international stakeholders helps navigate complex trade negotiations.
Market Impact and Future Prospects
Ford’s current lineup, including best-sellers like the Ranger, Everest, Transit, and Territory, already dominates several market segments in Vietnam. The Territory, in particular, ranks as the second-best-selling C-segment urban SUV, reflecting strong consumer demand for versatile and modern vehicles. The addition of the Mustang Mach-E and the updated Territory is expected to further solidify Ford’s position, especially as interest in electric vehicles grows among Vietnamese consumers.
Historically, Ford has left a lasting mark on the Vietnamese market with iconic models like the Laser and EcoSport. The introduction of EVs signals a new chapter, one that blends the company’s legacy of performance with a forward-looking approach to sustainability. With a network of dealerships spanning the country, Ford is well-positioned to meet the anticipated demand for its latest offerings, particularly among urban buyers seeking innovative and environmentally conscious options.
However, challenges remain. Vietnam’s EV market is still in its infancy, with limited charging infrastructure and high initial costs for electric vehicles posing barriers to widespread adoption. Government incentives and public-private partnerships will be crucial in overcoming these hurdles, and Ford’s collaboration with local authorities could set a precedent for other manufacturers entering the space.
Regional Context and Competitive Landscape
In the broader Southeast Asian context, Vietnam stands out as a promising market for automotive investment, competing with established hubs like Thailand and Indonesia. Thailand, often dubbed the “Detroit of Asia” hosts a mature automotive industry with extensive supply chains and government support for EV production. Indonesia, meanwhile, leverages its vast nickel reserves to position itself as a key player in battery manufacturing for electric vehicles.
Vietnam’s advantage lies in its political stability, skilled labor force, and strategic trade agreements, including participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). These frameworks provide access to global markets, making Vietnam an attractive base for companies like Ford to expand their regional footprint.
Yet, Ford’s focus on Vietnam also reflects a calculated strategy to tap into a market with significant growth potential. Unlike Thailand and Indonesia, where competition among automakers is fierce, Vietnam offers a relatively untapped consumer base eager for modern vehicles. Ford’s early mover advantage in the EV segment could cement its leadership in this emerging market, provided it navigates local challenges effectively.
Looking Ahead
As Ford Vietnam embarks on its EV journey, the implications for both the company and the country are profound. The Mustang Mach-E and Ford Territory launches are more than product unveilings; they represent a commitment to innovation, sustainability, and partnership at a time when Vietnam is redefining its role on the global stage. Whether this translates into long-term success will depend on Ford’s ability to adapt to local needs, from expanding charging infrastructure to offering competitive pricing for its electric models.
For now, Ford’s milestone serves as a testament to the enduring strength of Vietnam-US economic ties. As both nations navigate a complex geopolitical landscape, partnerships like this offer a glimpse of how shared goals—be they economic growth, technological advancement, or environmental stewardship—can pave the way for mutual progress. The road ahead for Ford Vietnam, much like the country it calls home, is full of promise and possibility.
