Vietnamese automaker VinFast has announced a workforce reduction in the United States, as the company navigates a restructuring process in its key overseas market. This move comes amid a stalled shipment of its first vehicles and plans for a potential initial public offering (IPO). Although the exact number of jobs to be impacted has not yet been disclosed, a VinFast spokesperson confirmed that headcount in Vietnam, where the majority of the company’s operations and staff are located, will remain unchanged.
VinFast, a subsidiary of conglomerate Vingroup JSC, has been striving to establish a presence in the US, where it aims to compete with established automakers. The company has hired approximately 150 individuals in the US, primarily in sales, support, and distribution positions, as part of a model that bypasses traditional dealerships.
Despite the setback, VinFast remains committed to its US expansion and has announced that its first batch of deliveries to the country will be delayed due to software updates.
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VinFast announced the merger of its operations in the US and Canada into a single business unit in late January. However, no job cuts were mentioned at the time. The company’s statement indicated that the move was aimed at streamlining North American operations and enhancing customer service through partnerships with third parties.
According to sources, VinFast has asked its managers to prepare lists that could result in up to 30% reduction in staff at its headquarters in Vietnam. These lists will be reviewed by the company’s founder and chairman, Pham Nhat Vuong, on Monday.
Despite the rumored cuts, VinFast has assured that there will be no net decrease in workforce in Vietnam, as they continuously review employees’ performance and will recruit new replacements for those who do not meet their standards. The company made its first shipment of 999 electric vehicles to the US in November and aimed for the first delivery of its VF8 SUVs in December.
VinFast has increased its workforce in recent years as it aims to capture a share of the growing electric vehicle market in Europe and North America. The company is seeking approval to build a $4 billion vehicle assembly plant in North Carolina, with plans to start production there next year. In December, VinFast filed for an IPO on Nasdaq with the ticker symbol “VFS” to finance its growth. Despite competing with established carmakers, VinFast vehicles are not eligible for the $7,500 tax credit in the US as they are not manufactured in North America.
