VinFast Lets Go 30 Percent of its Employees in Canada

•    Vietnamese EV maker VinFast has let go 30 percent of its employees in Canada.

•    The company is eliminating its Canadian division and integrating it with its U.S. division (VinFast North America).

•    The Canadian and U.S. markets are very different; VinFast seemed to have understood this by creating separate divisions entities.

In a decision that took many by surprise, Vietnamese manufacturer VinFast, which is bringing its first EVs to the Canadian market this year, has let go about 30 percent of its employees in Canada, or about 30 people, according to a source close to the matter. Indeed, the workforce of the Canadian division was about 100 strong, until last Friday. 

The reason? The company is undertaking a restructuring that will see its Canadian operations merged with those in the United States. 

It’s far too early to tell what the implications are for the company’s decision-making in Canada going forward, but this could be VinFast's first major misstep in North America. The Canadian and American markets are not the same.

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The 2023 VinFast VF 7 at the recent Montreal Auto Show | Photo: D.Boshouwers

Some of the fired employees posted on social media about being let go. Matthew Veenbasas, who was a technical supervisor, posted on Friday on his Linkedln account, saying “I, along with others at VinFast, were let go yesterday due to the restructuring of the Canadian team; six months to the day of my hiring.”

On January 25th, VinFast introduced the consolidation of its strategic corporate and administrative operations in Canada and the U.S. into one unit, VinFast North America.

The company said in a press release that the goal is to “drive increased efficiency in the use and allocation of resources, while improving VinFast’s operational and financial performance. It added that it is “part of VinFast’s long-term strategy to position the company for greater success in the highly-competitive and dynamic automotive industry.”

Why then a Canadian division was created in the first place is a good question. Clearly, there was a changing of minds over the past year.

The cuts affect head office workers and not employees at the eight VinFast stores the company operates in Canada. The first opened on November 15 at the Yorkdale Shopping Centre in Toronto. 

Automotive News reported that it sought comment late last week from John Lindo, the company's Canadian spokesperson. At week’s end he was still awaiting official comment from VinFast and could neither confirm nor deny the reports of a merger and firings. 

VinFast Canada thus becomes a division of VinFast North America, which will be responsible for sales, service and distribution in the Canadian market. 

Nguyen Thi Van Anh, already installed as CEO of VinFast North America, will retain her current position, the company said. The position of her Canadian counterpart Huynh Du An, has not been confirmed.

The company is investing heavily in the U.S., including the construction of a $4 billion plant in North Carolina. It has the tools and the means to succeed, provided it understands the North American situation. Clearly, its analysis of Canada is not the same as those of other manufacturers who have Canadian divisions. 

We will follow this issue closely.