Vietnamese EV maker VinFast made a splashy debut just a few short years ago, promising new affordable electric models that it would distribute globally. Less than three years after its launch, however, the company is facing great difficulties, and its European results are particularly catastrophic.
That’s almost an understatement. VinFast is facing a major crisis in Europe with nearly non-existent sales. And of course, the lack of sales on both sides of the Atlantic means the company is suffering colossal financial losses that threaten its medium-term profitability.
Disastrous results
Despite an ambitious distribution strategy, VinFast is unable to establish itself in the European market. Since the beginning of 2025, according to data from AAA Data, only 84 units have been registered across all of Europe; the company sold six cars in the first half of the year in France.
Several promised service centres never materialized or quickly closed their doors, creating confusion among customers. The VF6 and VF8 models failed to convince European drivers due to their disappointing driving dynamics and numerous changes in commercial strategy. Recall that VinFast initially launched its EVs by offering battery leasing, before changing its mind.
The silver lining for the company is that the brand continues to post excellent figures in Vietnam, which accounts for 80 percent of its global sales.
Canada isn't won over either
For what it’s worth, VinFast can say it’s doing better in Canada than in France, but that’s not saying much. After a launch that sparked some interest, VinFast never managed to gain a foothold: about 2,000 units of the VF8 were sold across Canada in 2024, a far cry from its stated goals.
In 2025, the end of federal and some provincial electric vehicle (EV) subsidies, which helped lead to a 45-percent drop in EV sales in Canada in the spring, forced VinFast to close half of its sales locations, including those in Laval, Toronto and Vancouver. In total, 10 locations were permanently closed.
Significant losses
VinFast is accumulating impressive net losses: $3.2 billion in 2024, following a $2.4 billion loss in 2023. For the second quarter of 2025 alone, the deficit reached $812 million.
The company's founder, Vietnamese billionaire Pham Nhat Vuong, has agreed to finance the manufacturer's losses for a period. And despite the dismal sales numbers, VinFast aims to achieve profitability before 2026 by focusing on its home market and certain Asian markets deemed more promising.
For the moment, there is no question of VinFast abandoning the North American market despite the numerous cuts, but the future may well decide otherwise.