Vietnam's VinFast adds dealers in Texas, New York and Kansas

Vietnamese automaker VinFast added to its growing list of franchised dealerships in the U.S. as the electric vehicle brand shifts away from its direct-sales model in favor of third-party retailers.

The EV startup announced four independent stores this week: Smith Haven VinFast in St. James, N.Y.; Principle VinFast Grapevine near Dallas; Hiley VinFast of Fort Worth, Texas; and VinFast Wichita in Kansas.

The new dealerships are in addition to VinFast's first franchised dealership in the U.S., Leith VinFast in Cary, N.C. The Leith store is near the site where VinFast is building its first U.S. assembly plant to make electric crossovers that will form the backbone of its lineup.

"This is an important step affirming VinFast's commitment to expanding its retail sales network and shortening the time to deliver our products to market," said Tran Mai Hoa, deputy CEO of sales and marketing for VinFast Global.

VinFast started selling its VF 8 compact crossover in California a year ago, using a direct-to-consumer model. VinFast has said that outside of California, it will use franchised dealers in the U.S. It's also using a mix of direct sales and third-party retailers in other global markets.

According to registration data and industry estimates, VinFast sold just a few hundred vehicles in California last year. The automaker is expected to add the three-row VF 9 crossover, which is imported from Vietnam like the VF 8, later this year.

Starting in 2025, VinFast expects to launch two smaller, more affordable crossovers, the VF 6 and VF 7, and is considering bringing a microcar, the VF 3, to the U.S. market as an under-$20,000 entry model, the company said.

Once VinFast's North Carolina plant is producing some of the EV models, the company expects them to qualify for the federal tax incentive that requires North American assembly and battery materials sourced from outside China.

The automaker's shift from direct sales to a mixed-sales model, including dealers, came after VinFast Auto Ltd. became a publicly traded company on the Nasdaq on Aug. 15.

In an earnings report in October, VinFast said it was shifting its sales model to allow for third-party sellers in some global markets, in addition to direct sales. VinFast also said it might consider transferring company-owned stores to its retail partners in some global markets, but the EV maker hasn't said whether that would include its California locations.

VinFast, backed by Vietnam's largest conglomerate Vingroup, was founded in 2017 and began making its first gasoline-powered vehicles for the domestic market in 2019. It has since phased out gasoline vehicles in favor of newly developed EVs.