The struggles of VinFast as it expands into North America have been well documented. But those struggles aren’t limited to what is happening in Canada and the United States as new regulatory filings reveal that a substantial portion of their sales are going to related companies, and not individual consumers.
In the first half of 2023, the Vietnamese automaker’s global sales totaled 11,300 EVs, of which just a few hundred took place in North America. However, a significant portion, 7,100 of that total were sold to Green and Smart Mobility (GSM), which just so happens to a Vietnamese taxi company owned by VinFast’s parent company, Vingroup, according to regulatory filings first reported by Barron’s.
In its filing to the U.S. Securities and Exchange Commission (SEC) on Tuesday, VinFast disclosed that a portion of its revenue also comes from the sale of various products and spare parts related to batteries to VinES, along with the sale of electric buses to VinBus, both of which are subsidiaries under Vingroup.
If that wasn’t enough, a subsidiary of VinFast entered into a 24-month agreement with GSM in March for the sale and delivery of a maximum of 30,000 VinFast EV models. That figure would be more than half of VinFast’s anticipated sales in 2023 of 50,000 vehicles.
Despite its struggles, VinFast is forging ahead with its global expansion plans. Deliveries are slated to begin in Europe in the second half of 2023. Additionally, the company intends to establish a third plant in Indonesia, along with its plant in Vietnam and another being built in North Carolina in the US.