Vietnamese electric vehicle maker VinFast has significantly reduced its expansion efforts in North America after entering the market with one of the most ambitious growth plans seen from a new automaker in recent years, refocusing instead on opportunities in Asia.
Founded in 2017 by Pham Nhat Vuong under the Vingroup conglomerate, VinFast moved quickly from domestic vehicle production in Vietnam to an export-led strategy aimed at global markets. The United States was positioned as a cornerstone of that plan, with VinFast announcing intentions to sell vehicles directly to consumers, roll out a broad electric lineup and build a large manufacturing and battery facility in North Carolina.
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VinFast began U.S. deliveries in late 2022 with the VF8 electric sport utility vehicle, followed by launches in Canada several months later. Plans also included the larger, three-row VF9. However, sales volumes remained limited amid intensifying competition in the EV market and a broader slowdown in demand.
In response, VinFast delayed the North American launch of the VF9 until 2025 and reassessed its retail strategy. In 2023, the company abandoned its direct-to-consumer sales model in favor of a traditional franchised dealership approach, citing cost reductions and improved market coverage. While the shift initially expanded its retail footprint, the dealer network has since contracted.
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According to Automotive News, VinFast now operates fewer than two dozen dealerships in the United States, with several locations closing or exiting the franchise over the past year. Inventory levels at remaining dealers remain limited, reflecting subdued sales. In Canada, the company earlier this year closed five of its 10 corporate-owned stores.
Manufacturing plans in the U.S. have also been delayed. VinFast’s proposed $2 billion factory in North Carolina has been pushed back to at least 2028, as the company reassesses market conditions and the timing of local production.
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By contrast, VinFast has reported more stable momentum in Asia. Strong demand in Vietnam, alongside expansion into markets such as Indonesia and India, has supported year-on-year growth in global deliveries. The company has benefited from measures including free public charging programs and plans for localized manufacturing in the region.