June 18 (Reuters) - VinFast said on Wednesday

its first dealership in San Diego, California, is set to begin

operations this month, as the Vietnamese electric-vehicle maker

doubles down on the dealer model in a bid to boost sales.

Backed by Vietnam's largest conglomerate, Vingroup,

VinFast has faced challenges including softer demand, stiff

competition and the fallout of U.S. tariffs.

In addition to the San Diego store, the company said it was

seeking and evaluating opportunities for dealerships throughout

California.

Vingroup had initially planned to focus on America for its

foreign sales and followed the direct-to-customer model like

Tesla, but slow progress in the U.S., even before growing

uncertainty caused by the tariffs, pushed a change in strategy.

The carmaker also plans to roll out an e-bus in the U.S.,

its chair said earlier this month.

It is shutting down some showrooms and shifting its focus to

Asian markets including Indonesia and India, the company has

said.

Shares of the company were marginally up.