Vietnamese automaker VinFast has recently announced a comprehensive restructuring of its European operations due to underwhelming performance and sluggish sales in the region. On May 9, VinFast shut down all of its showrooms and service centers in Europe and terminated the employment of approximately 90% of its European staff. Moving forward, VinFast models will exclusively be sold through European dealers, with the current direct sales model being discontinued. As part of the plan, the company intends to liquidate assets and terminate leases in the second quarter.

VinFast officials cited the macroeconomic environment, tariffs, and overall market uncertainty as the primary reasons for the restructuring, emphasizing that the direct sales strategy is no longer feasible in Europe. The company is reportedly losing over RMB 210,000 per vehicle sold, highlighting the severity of its financial challenges.