CES a Stepping Stone to U.S. Market for VinFast

Amidst its quest to gain credibility and a foothold in the U.S., Vietnamese automaker VinFast is expected to show a pickup truck at this month’s CES in Las Vegas.

VinFast, which is committed to building a $4 billion assembly plant near Raleigh, NC, also has reached a distribution deal with a U.S. dealer, North Carolina-based Leith Automotive Group.

The move comes after VinFast backed off its initial plan to sell exclusively direct-to-consumer, bypassing dealers, and instead adopted a hybrid model that includes both direct sales and dealer-based sales and service.

VinFast was founded in 2017 and is backed by Vietnam's largest conglomerate Vingroup, which is run by Vietnam’s richest industrialist, Pham Nhat Vuong. The automaker began delivering electric cars in California in March and made its Nasdaq debut in late August. Vuong owns 99% of the shares. The stock soared to a 52-week high of $93.00 after its initial public offering but then crashed amidst speculation around share-price manipulation. VinFast shares closed at $8.48 on Dec. 27.

Where Vuong’s wealth and the company’s actual liquidity begins and ends appears murky. Vuong, for example, just “donated” a battery company, VinES, to VinFast Auto.

The company’s sales are sketchy, too. It sold about 13,000 units globally in the second and third quarter of 2023, more than half of them to an affiliate company owned by its founder.

Meanwhile, before the company even begins to establish credibility or trust with EV buyers in the U.S., it plans to show at least two new vehicles at CES in Las Vegas – one of which may be a pickup based on a teaser image shared by the company, and an entry-level electric vehicle concept, the subcompact VF 3. It also will display electric bicycles at the show.