Tesla eyes a slice of Vietnam's booming EV market, but competition is fierce

Tesla is hiring staff for sales, after-sales services, and charging infrastructure development, suggesting the company is preparing to launch commercial operations in Vietnam.

However, analysts say the American automaker faces significant challenges from VinFast's market dominance, extensive charging network, and competitive pricing.

VinFast dominates Vietnam's EV market

According to CNBC, Vietnam became Southeast Asia's largest electric vehicle market in 2025.

Data from the International Energy Agency (IEA) showed that EV sales more than doubled that year, accounting for nearly 40 percent of all new car sales.

VinFast currently controls around 92 percent of the domestic EV market, according to research by HSC, a securities company.

The Vietnamese automaker sold 177,697 vehicles in the first nine months of 2026, accounting for approximately 36 percent of the country's total new car sales.

That figure exceeded the combined sales of Toyota, Hyundai, Mitsubishi, Ford, and Kia, which reached 175,136 vehicles during the same period.

Koketso Tsoai, a senior automotive analyst at BMI, a Fitch Solutions company, told CNBC that VinFast's strengths extend beyond its vehicle lineup.

Its strong domestic brand recognition, Vingroup ecosystem, widespread Green SM electric taxi network, and extensive after-sales services give the company a substantial competitive advantage.

VinFast also operates more than 150,000 dedicated charging ports nationwide, according to Supparoek Sawangwong, an ASEAN market analyst at Mobility Global.

By contrast, Vietnam's third-party charging infrastructure remains limited, posing a challenge for new entrants.

This may explain why one of the five job openings mentioned by Ricky Ip, Tesla's recruitment representative for the Asia-Pacific region, is for a charging infrastructure project development specialist. The recruitment suggests Tesla may be preparing to develop its Supercharger network in Vietnam.

Beyond charging infrastructure, pricing poses another challenge for Tesla.

While VinFast manufactures vehicles domestically at its Hai Phong plant, Tesla is likely to import cars from its Gigafactory in Shanghai, China.

Vietnam's relatively high import tariffs could affect Tesla's price competitiveness in the market.

Nevertheless, Vietnam's rapidly expanding EV market offers opportunities.

According to CNBC, EV sales jumped 89 percent year on year in the second quarter of 2026, while rising incomes have expanded the potential customer base.

Vietnam's registration fee exemption for electric cars, extended through 2030 and applicable to imported vehicles, could also benefit Tesla.

Model 3, Model Y could lead Tesla's Vietnam debut

Analysts interviewed by CNBC expect Tesla to introduce the Model 3 sedan and Model Y SUV, initially targeting higher-income consumers rather than competing directly with VinFast in the mass market.

Peter Richardson, vice-president and research director at Counterpoint Research, said Tesla's global brand recognition, advanced technology, and software capabilities could appeal to premium EV buyers, particularly technology enthusiasts.

Sawangwong suggested the Model 3 could target the near-premium segment, while the Model Y could become Tesla's main sales driver among SUV buyers.

However, Tesla would likely need more competitive pricing or a lower-cost model to gain a foothold in the mass market.

Tsoai said Tesla would not need to build demand for EVs from scratch in Vietnam but would have to convince customers that its technology, brand, and ownership experience justify paying more than for domestic alternatives.

Tesla has yet to announce its official launch date, vehicle lineup, pricing, or showroom locations in Vietnam.

Its recruitment across sales, services, and charging infrastructure, however, indicates preparations for a potential market entry.