A Study on the Leapfrog Phenomenon in Vietnam: A Case Study of Innovation by Domestic Electric Vehicle Company

The leapfrog phenomenon describes how the introduction of cutting-edge technologies in developing and emerging countries in such regions as Africa and Asia drive their economy and society to more advanced levels than those of Western countries, where socio-economic growth is grounded in older technologies. In Vietnam, an emerging country that has seen rapid economic growth in recent years, the introduction of electronic vehicles (EVs) by domestic manufacturer VinFast has led to nationwide innovation driven by the leapfrog phenomenon. EVs generally have an extremely small number of parts and a simple vehicle structure compared to gasoline vehicles. In addition, the company does not carry out R&D and design but concentrates on assembling and producing complete vehicles. VinFast has thus been able to bring its EVs to the market within a short period of about two years after launching its EV business. The widespread use of EVs also has enormous potential for reducing CO2 emissions. As Vietnam aims to become an environment-friendly nation, EVs are an important innovation in terms of global environmental issues as well. This paper discusses the reality and challenges of Vietnam's efforts toward innovation based on the leapfrogging model through the introduction of EVs.