HANOI (Reuters) – Vietnamese electric vehicle maker VinFast (NASDAQ:) said on Wednesday it has signed partnership agreements with 15 dealers in Thailand, its latest attempt to expand in Southeast Asia and take advantage of growing demand in the region.
The company said the deals were concluded at the Bangkok International Motor Show this week.
Thailand plans to shift about 30% of its annual car production to electric vehicles by 2030, increasing competition among electric vehicle makers, some of which are seeking to use the regional automaking hub as a production base.
VinFast is entering the market at a time when Chinese electric vehicle brands such as BYD (SZ:) and Great Wall Motor are selling heavily in Thailand, and market leader Tesla (NASDAQ:) is in talks with Thai authorities to set up a manufacturing facility.
BYD has the largest share of the electric vehicle market in Thailand. Guangzhou-headquartered Xpeng (NYSE:) plans to open five showrooms in Thailand this year to offer higher-end electric vehicles.
“VinFast and dealers will actively work to open 22 showrooms concentrated on major roads in the Greater Bangkok area, which is a key focus of VinFast’s expansion strategy in Thailand,” VinFast said in an announcement.
Thais bought 73,500 battery electric vehicles in 2023, or about 9% of domestic vehicle sales, and that figure is expected to double by the end of 2024, according to a forecast by the Federation of Thai Industry.
VinFast, which began making electric vehicles in 2021 and listed on Nasdaq last year, plans to expand into 50 countries. In 2023, approximately 35,000 vehicles were sold.