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Tesla / Reuters, Yonhap News

U.S. electric vehicle maker Tesla has established a local subsidiary in Vietnam, gearing up for its official market entry. Competition across Vietnam's electric vehicle (EV) market is expected to intensify further as global front-runner Tesla joins the fray, entering a sector where homegrown brand VinFast maintains a dominant foothold and Chinese automakers are mounting an aggressive pursuit.

According to Reuters on the 14th local time, Tesla completed the registration of its local entity, Tesla Motors Vietnam Limited Liability Company, in Ho Chi Minh City in southern Vietnam on the 11th. The subsidiary's registered charter capital stands at 77.667 billion dong (approximately 4 billion won).

The company's business registration documents specify its business scope, covering wholesale and retail sales of finished automobiles, vehicle parts sales, machinery and equipment trading, as well as vehicle import, export, and distribution. U.S. national David Jon Feinstein was appointed chairman of the subsidiary, while Isabel Ching Fan, a U.S. national residing in Hong Kong, was named general director. Tesla did not immediately respond to foreign media requests for comment regarding the entity's establishment.

VinFast, a subsidiary of Vietnam's largest private conglomerate Vingroup, holds a near-monopolistic position in the local EV market Tesla is now entering. VinFast delivered a cumulative 154,073 vehicles from January to August this year, and last year set an all-time annual sales record for a single automotive brand in Vietnam with 175,099 units delivered, according to company tallies.

Chinese automakers are mounting a fierce challenge as well. BYD, China's leading EV maker that entered the Vietnamese market in July 2024, has surpassed 5,000 cumulative sales and built a network of more than 35 showrooms nationwide. Omoda & Jaecoo, a joint brand under China's Chery Automobile, is also bolstering its local footprint, preparing to commission a manufacturing plant in northern Hung Yen Province.

According to global market research firm IMARC Group, Vietnam's EV market is projected to expand rapidly from roughly $3 billion (about 4 trillion won) in 2024 to approximately $12.2 billion (around 16.3 trillion won) by 2033.

Given its registered capital size and designated business scope, Tesla Motors Vietnam appears structured primarily as a sales subsidiary focused on importing finished vehicles and establishing direct-sales distribution networks rather than local manufacturing. Specific details, such as the official launch date of commercial operations and vehicle models slated for import and sale, have not yet been disclosed.

                                                                                                            Jeong Ri-na