Apr 22, 2024 - News

Report: VinFast struggles to sell its cars around the world

VinFast's VF8 electric vehicles bound for shipment at a port in Haiphong, Vietnam. Photo: Linh Pham/Bloomberg via Getty Images

VinFast, the Vietnamese electric vehicle maker building a factory in North Carolina, is struggling to sell its cars, an investigation by the financial news site Hunterbrook Media discovered.

Why it matters: VinFast has pledged to become North Carolina's first major automobile manufacturer, potentially adding 7,500 jobs in Chatham County. But it will need to sell its cars to reach its goals.

  • State and local governments have pledged more than $1.2 billion in incentives if VinFast meets hiring and investment goals.

Zoom in: The investigative report comes as construction on VinFast's North Carolina plant slowed due to permitting issues — though the car company has since filed the necessary permits to continue construction, per the News & Observer.

  • Despite not completing much work since breaking ground in 2023, VinFast has told shareholders it is still on track to open the factory, with the potential to make 150,000 vehicles a year, by the end of 2025.

What the investigation found: VinFast, a newcomer to the EV market, is struggling to make an impact with consumers, Hunterbrook reported.

  • More than 70% of the 35,000 vehicles it delivered last year were to companies owned by VinFast's CEO Pham Nhat Vuong, according to SEC filings first reported by Reuters earlier this month.
  • Those sales accounted for more than 90% of VinFast's total sales revenues, and satellite imagery showed many were stored in fields for months.
  • VinFast has shipped 3,118 cars to the U.S. so far. Of those, only 265 had sold as of December, according to EV registration data.
  • The company also shared in financial filings that reservations for its two signature vehicles have been trimmed from an expected 65,000 to about 14,700.

Yes, but: VinFast has recently signed leases with dealerships in the U.S. (including in the Triangle), started offering discount leases and told investors last week it still forecasts delivering 100,000 EVs this year.

Read the investigation from Hunterbrook

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