Vietnamese electric vehicle maker VinFast has dispatched more than 5,000 EVs to Europe and Southeast Asia in two shipments from Haiphong port in late July, according to a report from Vietnam's Ministry of Industry and Trade cited by TechNode Global and reported by Chinese outlet Huxiu. The shipments mark the company's 37th and 38th export batches in less than four years, with one vessel carrying about 1,500 VF6 models to Europe and another carrying over 3,500 vehicles to the Philippines and Indonesia.
VinFast has now entered more than a dozen markets including the US, Canada, Europe, India, Indonesia, the Philippines and the Middle East. In Vietnam, the company delivered 20,161 vehicles in August, maintaining its position as the country's top automaker for 24 consecutive months. The company listed on the US Nasdaq in 2023 with a market value exceeding $100 billion, though that has since fallen to about $7.5 billion.
A 'patchwork car' on Chinese shoulders
Despite its expansion, VinFast has faced harsh criticism for quality. US media that tested early vehicles called them "half-finished products," and professional reviewers awarded the VF8 the "worst quality car" title. The company recalled vehicles in 2023 for a head-up display failure and later for incorrectly installed airbags.
Huxiu notes that VinFast's success relies heavily on Chinese supply chain components. The company's mid-to-high-end models use batteries from CATL, while entry models and electric motorcycles use batteries from Gotion High-Tech, which has built a joint-venture battery plant in Ha Tinh. Drive motor production lines were supplied by Dalian Haosen, the same company that built lines for Xpeng and Volvo. Most electronic controls, smart cockpits and key materials are imported from China.
While VinFast claims a localization rate of about 60%, set to rise to 80% when its Ha Tinh battery plant reaches full production, Huxiu points out that foreign traditional automakers operating in Vietnam for decades have localization rates of only 10-15%. The figure measures processes performed in Vietnam, not core technology mastered locally, the report argues.
Geopolitical advantage over Chinese rivals
Huxiu suggests VinFast benefits from Western "China+1" supply chain diversification strategies. European tariffs on Chinese EVs and "Europe-first" procurement rules have created barriers for Chinese automakers, while VinFast gains easier access despite its quality issues. The Vietnamese brand uses Chinese batteries, motors and electronic controls, assembles vehicles in Vietnam, and sells them under a Vietnamese label, bypassing restrictions aimed at Chinese-made cars.
This arrangement has a silver lining for Chinese suppliers: VinFast's gross margin was -56.2% in 2025, while Chinese suppliers of batteries, motors and electronic controls typically earn 30-40% gross margins. VinFast sources about 70% of its materials from China, worth roughly $21,000 per vehicle. However, Huxiu warns that Chinese suppliers undercutting each other overseas effectively subsidize competitors like VinFast.
VinFast's growth is notable: it delivered 70,000 vehicles globally in Q2 2026, nearly doubling year-on-year, with 116,000 sold in Vietnam in the first half alone, up 72%. The VF3 mini EV sold over 15,000 units in Q2, becoming Vietnam's best-selling model. Huxiu advises Chinese automakers to maintain a technological edge by prioritizing their own supply chains and avoiding selling their most advanced components to potential rivals.
