In a strategic pivot amid sluggish electric vehicle (EV) demand, Vietnamese automaker VinFast has announced plans to close half of its 10 corporate-owned stores in Canada, signalling a broader retreat from its initial direct-to-consumer model in North America. The decision comes as federal and provincial “green” rebates shrink, and EV adoption slows, disrupting the company’s ambitious global expansion strategy.
Store Closures and Shift in Strategy
VinFast’s 10 corporate stores in Canada — which include four in Ontario, and three each in British Columbia and Quebec — will see five locations shuttered. Among those closing are high-profile mall-based showrooms in Toronto, Vancouver, and Laval, as well as two unspecified locations.
In a statement, the company said, “It is critical that we continue to adapt and evolve our business to ensure we are best positioned for future growth.” The announcement reflects VinFast’s reevaluation of its retail strategy as part of a broader realignment.
Decline in Sales and EV Incentives
The decision follows a sharp decline in VinFast’s Canadian sales. In 2024, the company sold 840 units of its VF8 SUV — the only model available at the time. However, in the first quarter of 2025, only 300 VF8s and 15 VF9s were sold in Canada, according to internal reports.
This downturn coincides with a rollback of government EV subsidies in several provinces, making electric vehicles less attractive to price-sensitive buyers. Combined with a general cooling in EV enthusiasm and increasing competition, VinFast is facing headwinds that few anticipated when it entered the Canadian market in late 2022.
U.S. Market Mirrors Canadian Moves
Similar changes are underway in the United States. After initially establishing company-owned stores in California, VinFast announced in April 2025 that it would shut down these outlets and transition to a franchised dealership model. The company says it now has a network of 38 franchised dealers in 16 U.S. states, including one in California.
Reports from industry analysts indicate that only 367 new VinFast vehicles were registered in the U.S. in the first two months of 2025, raising concerns about consumer interest and brand visibility. The company’s planned low-cost VF3 EV, which was to target budget-conscious North American buyers, has yet to materialised .
Global Realignment and Factory Suspension
VinFast’s global expansion was once viewed as a bold challenge to Tesla and other EV leaders. Founded in 2017 as part of Vingroup, Vietnam’s largest private conglomerate, the automaker quickly built a manufacturing base and launched the VF8 and VF9 for international markets.
However, its planned $4 billion manufacturing plant in North Carolina, announced in 2022, was suspended just two years later, a sign that the company’s aggressive scaling strategy may have outpaced market realities.
The Road Ahead
While VinFast insists its restructuring is aimed at “future growth,” the current signs point to a significant scaling back. The move away from company-owned retail spaces, in both Canada and the U.S., may help reduce overhead, but it also distances the brand from the high-touch customer experience it once championed.
As EV competition intensifies and incentives become less generous, VinFast must navigate a path that balances operational efficiency with market relevance. Whether its franchising strategy will succeed where direct sales faltered remains to be seen. For now, VinFast’s North American journey enters a new, more cautious chapter.
