VinFast entered the North American market with one of the most aggressive expansion plans seen from a new automaker in years. Just a short time later, that strategy has been significantly scaled back, as the Vietnamese electric vehicle (EV) maker retrenches in the United States and Canada while shifting its focus toward growth in Asia.
Founded in 2017 by Pham Nhat Vuong under the Vingroup umbrella, VinFast moved rapidly from domestic production in Vietnam to a global export strategy. The company set its sights on the U.S. as a key market, announcing plans that included a Tesla-style direct sales model, a broad EV lineup, and a large manufacturing and battery facility in North Carolina.
VinFast’s U.S. launch began in late 2022 with the VF8 electric SUV, followed by deliveries in Canada a few months later, with eventual plans to introduce the larger three-row VF9. However, early momentum proved difficult to sustain. The VF8 arrived during a period of heightened competition in the EV space, and sales volumes remained limited. As adoption slowed, VinFast adjusted its strategy, delaying the VF9’s rollout until 2025, and rethinking how it sold vehicles in North America.
In 2023, VinFast formally pivoted away from its direct-to-consumer approach and began transitioning to a traditional franchised dealer model. At the time, the company reported strong interest from dealers across multiple U.S. states, positioning the move as a way to reduce costs and improve regional coverage. While that shift initially expanded VinFast’s retail footprint, the network has since shrunk considerably.
Today, the brand operates fewer than two dozen dealerships in the U.S., with several locations closing or exiting the franchise over the past year, according to Automotive News. Inventory levels at many remaining dealers are modest, as sales remain low.
Meanwhile in Canada, VinFast already announced the closure of five of its 10 corporate-owned stores in Canada earlier this year.
Manufacturing plans in the U.S. have also slowed. VinFast’s proposed $2 billion North Carolina factory is now delayed until at least 2028. The company has cited broader market conditions as it reassesses the timing and scale of local production.
While facing difficulties in North America, VinFast is seeing more consistent results in Asia. Strong support in its home market of Vietnam, combined with expansion into countries such as Indonesia and India, has helped drive year-over-year global sales growth. Programs such as free public charging and localized manufacturing have played a role in supporting adoption in those regions.
