VinFast Continues American Onslaught With EVs at CES

Vietnamese automaker VinFast took the stage at the 2024 CES show in Las Vegas. CES, a consumer electronics show, runs from January 9-12 at the Las Vegas Convention Center. The company showed off three electric vehicles (EVs) on Tuesday including the previously shown VF 9 full-size SUV, the new mini eSUV VF 3 and a new concept.

The VF 3 is an extra small SUV. At just 125 inches it would be dwarfed on American roads by even our compact vehicles. The four seater has a range of 125 miles on a charge, however it does come with modern conveniences like Apple CarPlay and a touchscreen infotainment system.

The VF 3 will be available this year. VinFast says pricing and information about which regions get which cars will come later.

The other vehicle is a concept electric pickup called VF Wild and it is correctly sized for the U.S. market at 209 inches, about the same size as a Chevrolet Colorado midsize truck. It features a power-folding midgate like the GMC Sierra Denali EV, adapting the bed length from 5 to 8 feet when necessary.

The VF Wild concept was jointly developed by VinFast and Australian design studio Gomitiv.

“VinFast has struggled to break into the U.S. market meaningfully but is working furiously to build momentum. Sales of the VF8 have been slower than anticipated, with lukewarm reception and a series of compounding launch issues. That’s not entirely surprising for a new, unknown foreign startup trying to enter what’s arguably the most challenging auto market to penetrate — with pickier buyers and higher standards in the U.S. than many other global markets,” Paul Waatti, manager of industry analysis at AutoPacific told Newsweek.

Last week VinFast appointed Pham Nhat Vuong, founder and Chairman of Vingroup Joint Stock Company, VinFast’s parent company, to the Chief Executive Officer position, capping off a series of changes as the company has expanded globally.

“Company turnover and executive changes have been regular, likely persisting as the company deploys substantial capital and spreads itself thin, building out infrastructure with new plants in India and the U.S., simultaneously reaching further into other global markets. The most recent CEO change puts Vingroup’s founder and largest VinFast stakeholder at the helm, suggesting the company realizes the great lengths it must take to succeed globally,” said Waatti.

Additionally, the company said it has officially signed a group of dealers to sell its imported EVs in the United States. The new network includes locations in Raleigh, North Carolina, St. James, New York, Grapevine and Fort Worth in Texas and one in Wichita, Kansas.

VinFast says these dealers will initially begin selling the VF 8 all-electric SUV, with plans to add the VF 6, VF 7, and VF 9 models when they launch in the US market. It plans to include 125 dealers across the country.

“The automaker has shifted from direct-to-consumer sales to a hybrid sales approach with a growing U.S. dealer presence. Leveraging existing dealer footprints should help to broaden its reach. VinFast has an influx of new models on the horizon for the U.S. and global markets to appeal to varying segments and price points,” said Waatti.

In the summer of 2023 VinFast broke ground on its $4 billion EV factory in North Carolina with former CEO Le Thi Thu Thuy noting that “the event marks a new milestone for VinFast, affirming our commitment to the North American market.” It would be the first auto factory in the state and one of the biggest investments in the state’s history.

VinFast says the operation will create 7,500 jobs over the next decade and will be able to produce 150,000 vehicles per year at the plant once it’s finished in 2025. Having a plant in the U.S. would allow VinFast vehicles to qualify for the new EV tax credit that only works if the vehicle is assembled in North America.

Helping the project along, VinFast was offered incentives to build the plant. North Carolina has provided VinFast with a $1.2 billion package that includes $38 million for job training. Additionally, the company could get up to $316 million in reimbursement from the state over three decades if it meets hiring goals.

The company is also working with local universities and colleges to help train a workforce in STEM (science, technology, engineering, math) fields “to stay ahead of the trend, help future generations easily access science and technology and find well-paying transportation-related jobs.”

On the other side of the world the company just said it plans to spend up to $2 billion to build an electric vehicle factory in India, which is the third largest auto market behind China and the U.S. The company has already committed $500 million to the first phase of the project, which will be located in the port city of Thootukudi.

“VinFast faces an uphill battle globally — particularly in the U.S. — but it’s far too early to discount its potential success. With immense capital backing, ambition, and grit, underestimating VinFast at this early point would be premature,” Waatti said.