VinFast, a Vietnamese electric vehicle (EV) manufacturer, is facing significant challenges in its expansion efforts, particularly in North America. Despite ambitious plans, the company has encountered obstacles that have led to strategic shifts and raised questions about its future.
Who Is VinFast?
Founded in 2017 by Vingroup, VinFast is Vietnam’s first major automotive brand. The company initially focused on internal combustion vehicles but quickly transitioned to electric vehicles, aiming to compete globally. VinFast has launched several EV models, including the VF 8 and VF 9 SUVs, and has expanded operations to the U.S., Canada, and Europe.
Challenges in the North American Market
VinFast is banking on the North American market, particularly the United States, to advanced its business. But there are several challenges that are quite frankly making this difficult.
Closure of Company-Owned Stores in California
The company initially adopted a direct-to-consumer (DTC) sales model in the U.S., opening 15 company-owned showrooms in California. However, in April 2025, the company announced plans to close all these stores and transition to a franchised dealership model. This shift aims to broaden distribution but also reflects difficulties in sustaining the DTC approach amid operational challenges.
Delay in North Carolina Plant Construction
VinFast’s plans to build a $4 billion EV manufacturing facility in Chatham County, North Carolina, have been delayed. Originally slated to begin production in 2024, the start date has been pushed back to 2028. The company cites the need to optimize capital allocation and manage short-term spending more effectively as reasons for the delay.
Further, the company has struggled with lower-than-expected demand for its EVs in North America. In Canada, the company closed half of its 10 corporate-owned stores due to modest sales and shifting market conditions. In 2023, VinFast registered just 89 new vehicles across the entire country.
Financial Struggles
Despite increasing vehicle deliveries, the company continues to incur substantial losses. In 2024, the company delivered 53,139 EVs globally, a 143% increase from the previous year. However, it posted a net loss of approximately \$3.18 billion, a sharp increase of 24.8% from 2023. These financial challenges have raised concerns about the company’s long-term viability.
Tough Going
VinFast’s ambitious expansion into the North American EV market has been met with significant hurdles, including operational challenges, delayed projects, and financial losses. While the company continues to adjust its strategies, the effectiveness of these changes remains to be seen. The coming years will be critical in determining whether the company can overcome these obstacles and establish a sustainable presence in the global EV market.
References
Baertlein, L. (2025, March 20). Vietnam EV maker VinFast posts $3.2 bln net loss for 2024, deliveries jump. Reuters.
Beene, R. (2025, April 24). VinFast to close stores in franchise shift. Automotive News.
CarsDirect Staff. (2025, March 28). Is VinFast going out of business? CarsDirect.
Drive Tesla Canada Staff. (2024, December 12). VinFast to close half of Canadian stores. Drive Tesla Canada.
Schwartz, M. (2024, May 15). VinFast delays North Carolina EV plant timeline to 2028. Automotive Dive.
VinFast News
VinFast Delivers First VF9 Electric SUVs — The Vietnamese automaker has begun delivering its flagship VF9 all-electric, seven-passenger SUV to U.S. customers, marking a significant step in its expansion into the competitive American automotive market.
CES 2024: Introducing the VinFast Wild — At CES 2024, the company unveiled the VF Wild, a concept electric pickup truck, marking its ambitious entry into the small truck segment.
VinFast Auto Announces Global Launch of VF 3 at CES 2024 — At CES 2024, VinFast introduced the VF 3, a mini electric SUV designed for urban drivers, featuring a compact design and practical features for city commuting.
About Those Affordable VinFast Lease Deals — The company is offering competitive lease deals on its VF 8 models, with monthly payments starting at $249, aiming to attract U.S. consumers to its electric vehicle lineup.
VinFast is Coming to America — VinFast, an upstart automaker from Vietnam, announced plans to enter the U.S. market with two all-electric SUVs and a new manufacturing facility in North Carolina.
