Vietnamese Automaker Vinfast Struggles but Remains Committed to US Electric Vehicle Market

Vietnamese Automaker targets international markets, while investing in local production with a $4 billion EV factory in North Carolina and affiliate factories in India and Indonesia despite disappointing US sales and fierce market competition.

• Vinfast, a Vietnamese automaker, has committed to entering the US market despite selling only 2,009 electric vehicles in the country, or less than 1% of total US EV sales.
• Despite not meeting its target of selling 50,000 EVs worldwide in 2023, the company remains dedicated to expanding in countries shifting towards reduced emissions.
• The automaker, which is part of the Vingroup conglomerate, chose to enter the competitive US market as a proving ground - if they can succeed there, they believe they can succeed anywhere.
• To support its US ambitions, Vinfast is building a $4 billion EV factory in North Carolina and plans to start production next year. The company is also targeting markets in Europe, Southeast Asia, India and the Middle East.
• Investors initially showed strong interest in Vinfast, with shares more than doubling in value to $82.35 when listed on the Nasdaq. However, the shares are now trading at around $5.70, and the company anticipates more significant financial backing, expecting $1.2 billion in fresh investments in the next six months.

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