Tesla recently set up a subsidiary in Vietnam, taking a step toward a potential entry into a fast-growing EV market dominated by homegrown rival VinFast.
Tesla recently set up a subsidiary in Vietnam, taking a step toward a potential entry into a fast-growing EV market dominated by homegrown rival VinFast.
A Tesla Supercharger electric vehicle charging station is seen in Ohio, United States, on August 8, 2026. (Photo by Marcin Golba/NurPhoto via Getty Images)
Nurphoto | Nurphoto | Getty Images
Tesla is laying the groundwork to enter Vietnam, setting its sights on a fast-growing electric vehicle market where a formidable homegrown rival is already deeply entrenched.
The U.S. electric vehicle maker registered a local entity, Tesla Motors Vietnam, this month, according to business registration records, paving the way for a potential expansion into the country.
But Tesla would be taking on a homegrown giant. Vietnam became Southeast Asia's largest electric car market in 2025 as sales more than doubled, with EVs accounting for almost 40% of new car sales, according to International Energy Agency data released in May. Nasdaq-listed VinFast has captured 92% of the domestic EV market, according to HSC research.
VinFast is backed by Vingroup, one of Vietnam's largest private conglomerates, founded by Vietnamese billionaire Pham Nhat Vuong, which has built an ecosystem around its EVs spanning charging and after-sales services.
Vingroup generated 221.97 trillion dong ($8.52 billion) in revenue in the first half of 2026, per its reviewed financial statements.
VinFast's home advantage
VinFast's home-market strengths include strong local brand recognition, Vingroup's broader consumer ecosystem and widespread visibility through an affiliated local electric taxi network, according to Koketso Tsoai, senior automobiles analyst at BMI, a unit of Fitch Solutions.
Averytin News Financial update.