VinFast to Shut Down Half of Its Canadian Retail Operations
VinFast, the Vietnamese electric vehicle (EV) automaker, has announced the closure of five of its ten corporate-owned stores in Canada. This strategic move aims to enhance long-term performance and better align operations with current EV demand.
The company, which entered the Canadian market in mid-2023 with the launch of the VF 8, its first all-electric SUV, has struggled to gain significant traction in the country. According to S&P Global Mobility, just 89 new vehicles were registered across Canada in 2023.
The elimination of provincial and federal rebates in recent months has flattened the EV adoption curve in Canada. For newer brands like VinFast, the hurdles caused by these factors are even bigger to overcome.
The closure will affect high-profile shopping mall showrooms in Vancouver (BC), Toronto (ON), and Laval (QC). However, VinFast will maintain a presence in each of the four provinces where it currently operates - Ontario, British Columbia, Quebec, and Alberta.
Despite the store closures, VinFast continues to deliver electric vehicles globally with strong growth. The company has delivered over 72,000 EVs in the first half of 2025, indicating they remain committed to their global expansion, including Canada.
The company is exploring new options for its go-to-market strategy in response to retail performance underwhelming. They are considering the introduction of franchised dealerships, a model they have already begun rolling out in the United States.
Rising interest rates, reduced subsidies, and slower-than-expected infrastructure buildout have collectively tempered consumer enthusiasm across North America. These challenges are not unique to VinFast, as they reflect the broader EV industry headwinds.
VinFast is facing an uphill battle in building consumer awareness and trust in a market increasingly dominated by established players like Tesla, Hyundai, and Ford. However, the company emphasizes its continued commitment to the Canadian market and plans to expand its after-sales service network nationwide.
In summary, VinFast's closure of about 50% of its physical Canadian stores reflects an adjustment to evolving EV rebate policies and market realities, while they maintain broader growth and deliveries internationally and in Canada through other channels. The company remains optimistic about its future in the Canadian EV market.
- In an attempt to adapt to evolving EV rebate policies and market realities, VinFast, the Vietnamese electric vehicle automaker, is revamping its go-to-market strategy in Canada, considering the introduction of franchised dealerships as a potential solution for improved retail performance.
- Despite the closure of five out of ten corporate-owned stores in Canada, VinFast continues to remain committed to the Canadian EV market, maintaining a presence in each of the four provinces where it currently operates and expanding its after-sales service network nationwide.
