VinFast adjusts European business strategy

Due to poor performance in the European market, Vietnamese automaker VinFast plans to restructure its European business, including closing all showrooms and service points, laying off about 90% of European employees, and starting asset liquidation in the second quarter. The company decided to abandon the direct sales model and switch to a franchise dealer model. Although VinFast's global sales reached 97,399 vehicles last year, an increase of more than 300% year-on-year, its full-year net loss reached US$3.18 billion and its revenue was only US$1.8 billion. In the domestic market of Vietnam, VinFast's sales in the first four months reached 44,691 vehicles, close to the combined sales of Toyota, Hyundai and Ford.