VinFast replaces direct sales with nearly 30 U.S. franchise dealerships amid weak U.S. demand.
$3.2B in 2024 losses prompt global shift toward India, Indonesia, and the Philippines.
North Carolina plant delayed to 2028; U.S. EV plans remain uncertain beyond VF 8 and VF 9.
Vietnamese electric vehicle maker VinFast has replaced its direct-to-consumer model in the United States with a franchised dealership network, beginning with its first franchise store in San Diego, California. The change is a major pivot in the company’s global strategy, as it retreats from earlier expansion efforts in North America and Europe to refocus on Asian markets.
2025 VinFast VF 8 Plus Review: Colourful, Capable… and Complicated
The San Diego dealership is part of VinFast’s nearly 30 franchised dealerships in 14 states, although it has not disclosed an exact count. This follows the closure of its 15 direct-sales showrooms in California, announced in April.
VinFast’s initial push into the U.S. began in 2022 with plans for a widespread retail network and a production facility in North Carolina. However, the company delayed the opening of the U.S. factory until 2028 and in May closed half of its 10 corporate stores in Canada to redirect resources.
These changes are the result of the automaker’s troubled rollout in Western markets, which included poor initial reviews, a software-related recall, and low sales. According to S&P Global Mobility, U.S. registrations dropped 37% in the first half of 2025 compared to the same period last year.
We’ve reviewed the VF 8 and are planning on publishing our VF 9 impressions in the coming weeks. In short, we were hoping for more.
VinFast VF 7 | Photo: Matt St-PierreIn early 2024, the company said it planned to introduce several more electric crossovers in North America, including the compact VF 3. However, no further updates have been provided, and only the VF 8 and VF 9 remain available. The VF 8 starts at $41,100 with shipping, and the VF 9 at $64,100. Both are currently eligible for a $7,500 U.S. federal EV tax credit through leasing, which is scheduled to end on September 30. In Canada, the VF 8 is priced from $53,600 while the pricier VF 9 starts at $74,890 before all relevant fees.
VinFast’s global financial difficulties are tied to its retracting expansion. The automaker posted a $3.2 billion loss in 2024 and spent $1.57 for every dollar in revenue. Founder Pham Nhat Vuong, Vietnam’s wealthiest individual, has contributed more than $2 billion of his own funds and remains the primary financial backer, supported by Vingroup JSC and its affiliates.
The company is now focusing on regions such as India, Indonesia, and the Philippines, citing their growth potential in the EV market. It opened its first overseas assembly plant in India this month near the port city of Thoothukudi. The facility has an annual capacity of 150,000 vehicles and is part of a $500 million initial investment, expected to grow to $2 billion.
In June, VinFast inaugurated its second manufacturing plant in Vietnam, with a capacity of 200,000 units annually. A smaller factory in Indonesia is scheduled to open in the coming months.
According to the company, these regions are entering a “vibrant phase of growth” for electric vehicles. Lower levels of vehicle ownership and limited domestic competition make Southeast Asia a strategic opportunity, despite thinner margins compared to Western markets.
Tu Le, founder of Detroit-based Sino Auto Insights, said the company faces pressure to build its presence quickly before Chinese EV brands introduce more aggressive pricing in the region. “If VinFast can’t establish itself before this,” Le said, “I don’t know how much future it’ll have outside Vietnam.”
VinFast says its changes reflect standard business adjustments in response to market conditions. California remains a strategic focus in the U.S., where the company says EV growth continues to outpace other regions.
Source: Automotive News
