(Bloomberg) -- Vietnam’s VinFast Auto Ltd. founder Pham Nhat Vuong started a new company to rev up domestic sales of the EV maker’s vehicles, which have been slow to gain traction.

Vuong, who is also founder of parent real estate conglomerate Vingroup, set up FGF Trading and Services JSC, which will allow the company to sell used and new VinFast EVs to domestic consumers, according to a Vingroup emailed statement. 

The company will also lease new and used VinFast vehicles. In its initial stage, FGF plans to offer 1,000 to 2,000 EVs for lease in major cities across Vietnam.

The move comes as VinFast struggles to gain a foothold in the highly competitive EV market. It delivered less than 10,000 cars in the first quarter of this year, or about a tenth of its annual 100,000 target. The automaker sold 34,855 vehicles last year, most of which went to related parties.

Vuong owns 90% of FGF — or For Green Future — and has registered capital of 200 billion dong ($7.86 million). 

VinFast in October said it had sold 7,100 vehicles to GSM Green and Smart Mobility JSC, a Vietnamese taxi firm in which Vuong holds a 95% stake. GSM, formed in early 2023, said it aimed to have 20,000 VinFast electric cars and 60,000 electric motorbikes, according to its website. It also leases electric cars and motorbikes to local transport companies.

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