- Vietnamese automaker VinFast has a small but growing presence in the U.S. market
- Recent reports hinted that the company might be inching away, but a spokesperson tells us it’s not
Vietnamese automaker VinFast has just established a beachhead in the U.S. market. But recent media reports make it sound like the automaker is already shifting its attention away from America.
Bloomberg reported last week that, “After failing to turn VinFast into a major player in the U.S. and Europe,” company Chairman Pham Nhat Vuong was “pivoting to Asian markets like India, Indonesia, and the Philippines.”
A company spokesperson tells us the rumors are false: “VinFast is committed to operating and growing its business in the U.S.”
A Major Player Elsewhere, a Newcomer Here
- VinFast is a project of Vietnam’s largest conglomerate and sells cars in Asia, Europe, and North America
- It has one factory planned for the U.S., and dealerships in several states
VinFast may still be an unfamiliar name to most Americans. It’s one of many startup automakers focused on building electric vehicles (EVs). However, one key advantage separates it from projects like Lucid or the failed Fisker.
VinFast is one arm of Vietnam’s largest company, a conglomerate with operations in everything from construction to resorts.
Related: What Is VinFast? All About the New Vietnamese Automaker
Launching a new automaker is one of the most challenging prospects in business because it requires huge outlays of capital for years before there’s even a hint of profit. Deep pockets can matter more than great products, as the ability to burn through cash lets a company learn from its mistakes and build a reputation with the public.
Projects like Fisker and Lordstown Motors have failed because they ran out of fiscal runway before achieving that liftoff.
Since its 2022 debut in the U.S., VinFast has grown steadily. It now has locations in 14 states. The company has plans for a factory in North Carolina, though it has pushed the plant’s opening date back to 2028.
Today, it sells the VF 8 2-row midsize SUV and the VF 9 3-row SUV. It has toyed with bringing over several other products, including a subcompact SUV that could become the least expensive car in the U.S.
It has suffered through early growing pains, including abysmal reviews of the first VF 8 models. We’ve found that the quality of those cars has improved since those early experiences, pointing once again to the importance of enough funding to learn.
Sticking Around
- The company says its Asian investments are not a sign that its U.S. plans are in danger
“VinFast has a comprehensive development strategy for its markets, with the U.S. being a key focus,” the spokesperson tells us.
“VinFast’s expansion in Asia is an important part of our overall growth strategy to promote global transportation electrification,” the spokesperson added. But the company will “continue to sell our VF 8 and VF 9 models in the U.S., while expanding our dealership network. We currently have nearly 30 dealerships across 14 states with plans to continue expansion nationwide.”
