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Tesla registers in Vietnam, but local giant VinFast holds 92% of EV market
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Tesla Motors Vietnam has quietly completed registration, marking its entry into Southeast Asia's largest electric vehicle market. However, the company faces a dominant incumbent: VinFast, which controls 92% of the domestic EV market. VinFast's parent conglomerate Vingroup has built an ecosystem of charging, after-sales, and electric taxi services, including over 150,000 proprietary charging points that only serve its own vehicles. Even BYD has struggled against this barrier. Analyst Toi commented that Tesla will find it hard to win because VinFast's advantages extend far beyond the product itself. Despite this, the Vietnamese EV market is booming: sales doubled in 2025, EVs now account for nearly 40% of new car sales, and Q2 growth was 89%. GDP grew 8% last year, and per capita income exceeded $5,000. VinFast is not without weaknesses: Q1 revenue rose nearly 42%, but net loss widened 59% to $1.12 billion, indicating a cash-burning strategy. Tesla can leverage its Model 3 and Model Y, plus production flexibility from its Shanghai factory. Analyst Sawangwong noted that initially, the two companies will serve as mutual benchmarks rather than direct competitors. Analysts agree that Tesla can capture a high-end niche with two models, but to challenge VinFast's foundation, it will need either more aggressive pricing or a cheaper model, as the Vietnamese market is highly price- and practicality-sensitive.
Source report
By CNBC, September 22 — Tesla Motors Vietnam has quietly completed its registration this month, as Elon Musk sets his sights on Southeast Asia's largest electric vehicle (EV) market. But the script awaiting him is already written: 92% of the domestic EV market belongs to local giant VinFast, and for 24 consecutive months, not a single Tesla (TSLA) has topped the country's best-selling vehicle list.
Welcome to Someone Else's Home Turf
VinFast's moat runs deeper than its vehicles. Backed by the consumer empire of parent company Vingroup (883434), it has woven an ecosystem spanning charging infrastructure, after-sales service, and electric taxis. Its most formidable weapon: infrastructure blockade. The company operates over 150,000 proprietary charging ports nationwide — and they only work with VinFast vehicles. Even BYD (002594) has stumbled at this hurdle.
Analyst Tao Yi put it bluntly: "Tesla (TSLA) will find it very hard to win, because VinFast's advantages go far beyond the product itself."
The Other Side of the Story: A Market Exploding
The turning point lies in the numbers: Vietnam's EV sales more than doubled in 2025, with EVs now accounting for nearly 40% of new car sales. Growth in the second quarter of this year still stands at 89%. The country's GDP grew 8% last year, and per capita income has surpassed $5,000.
In other words, Tesla (TSLA) does not need to educate the market — it only needs to prove that its brand and technology are worth the premium.
Even Giants Have Weaknesses
VinFast is not without vulnerabilities. In the first quarter, revenue rose nearly 42%, but net loss widened 59% to $1.12 billion — a sign that the "burn cash for market share" game (881275) is taking its toll.
Tesla (TSLA), meanwhile, holds the Model 3 and Model Y cards, along with regional production flexibility from its Shanghai factory. Analyst Sawangwong offered a nuanced take: "In the early stages, the two companies will serve as benchmarks for each other, rather than direct competitors."
The Real Test Lies Ahead
All analysts point to the same reality: Relying on two models to capture a high-end niche is feasible, but to challenge VinFast's foundation, Tesla must either price more aggressively or introduce a cheaper model. Vietnam's market is notoriously sensitive to price and practicality — a trait that humbles even the boldest contenders.
Tesla (TSLA) has arrived, and its license is secured. The story has just begun — but on a turf where nine out of ten EVs sold bear the VinFast name, the first strokes of that story will likely be heavier than anywhere else. (International Financial News Digest)
Source
同花顺财经Neutral / independent
Part of this Story
Tesla registers Vietnam entity to enter EV market dominated by VinFast's 92% share