by Attempt to Enter the American Market
The entry of the Vietnamese automaker VinFast into the US market has encountered serious difficulties. Sales of the brand’s cars remain extremely low, support from the dealer network is weakening, and the development strategy appears to be falling apart faster than it was built.
With each new partner distancing themselves from the brand, more questions arise about the future of VinFast’s presence in the United States.
Key Company Problems
Currently, only the VF 8 crossover and the three-row VF 9 are offered in the USA. The company once announced plans to supply the compact VF 3 and even a pickup truck for American buyers, however, these ambitions now seem increasingly unattainable.
Halt of Expansion Plans
The situation is further complicated by the status of the factory construction in North Carolina. Ceremoniously begun in 2023, it was supposed to be completed within a year, but these deadlines were disrupted. Construction was halted, and the plant opening was postponed until 2028.
The signs are not encouraging. According to reports, currently fewer than two dozen VinFast showrooms are operating across the entire United States, and this number continues to decrease. One closed in July, another in November, and a third in North Carolina is set to cease operations by the end of the year.
Even among the remaining dealers, many operate only formally. Some locations have no cars at all, while others have only a few units of equipment left.
Indeed, of the 22 active dealers claimed by VinFast, only 17 have electric vehicles in stock. Most of them have 15 or fewer cars available. One dealer in Florida has only one 2024 VF 8 car in stock, priced at $52,910.
Sharp Drop in Sales
VinFast sales have suffered a serious blow this year. In the first ten months, only 1,413 cars of this brand were registered in the United States, which is 57% less than in the same period last year. This is happening against the backdrop of overall electric vehicle sales across the country increasing by 11%.
The company’s expansion clearly has not happened as planned. Initially, it expected to quickly sign deals with 125 dealers, and then planned to have hundreds of retail outlets across the country by the end of 2024. As of August, the company claimed “nearly 30 authorized dealerships.”
Strategic Pause
According to VinFast Chairwoman Thuy Thu Le, the company has paused its aggressive push into the US market and currently does not plan to open new dealerships.
“Given the tariff situation and instability in the electric vehicle market, we need to observe how it all settles before we start acting actively in the USA. Until we see some growth and stability in the American market, we do not intend to open more dealerships. Instead, we are cultivating relationships with existing dealers and working to help them achieve profitability faster.”
The current circumstances for VinFast in the USA are quite complex, as the company faces simultaneous internal logistics and distribution problems and external challenges, such as tariff policy and the overall electric vehicle market conditions. Focusing on supporting existing partners instead of expansion may be a forced but logical step to preserve positions. The success of this strategy will depend on whether current dealers can truly stabilize their operations and attract more customers to products that are still new to the American consumer. The long-term future of the brand in the region is likely to be closely tied to the fate of its postponed plant in North Carolina and its ability to adapt to a rapidly changing competitive environment.
