VinFast has announced its intention to launch promotions to ensure its competitiveness shortly after entering the all-important American market, reportsReuters.

This announcement comes after chief rival Tesla cut prices across its lineup. The already popular Model Y Long Range will likely lure more customers thanks to a $13,000 reduction in cost. With an MSRP of $52,990, the Tesla is now cheaper than VinFast's VF 8, which retails from $59,000 and has a significantly lower estimated range.

"As a new brand entering the market, when other brands reduce their prices, we have to come up with promotions to ensure VinFast's competitiveness," a spokesperson for the brand said. "We are considering many promotion programs and will announce [them] soon."

It's unclear whether these planned promotions would include reduced prices, but we're guessing VinFast is worried about its future in America. Tesla has a powerful brand image that newcomer VinFast will struggle to match.

The Vietnam-based EV manufacturer recently opened several new dealerships and service centers to entice buyers. While Tesla's price reductions are likely to hamper sales of the larger VF 8 and VF 9 models, VinFast still has a chance to succeed as it plans to introduce smaller models in the coming months.

The VF 6 and VF 7 should be considerably cheaper and will likely compete in a more affordable segment. Tesla is yet to introduce a more affordable EV than the Model 3, which now retails from $43,990.

It's possible that VinFast may not be able to reduce prices further. Therefore, we should expect the automaker to tackle this issue from several directions. It could offer free charging for a specified duration or even create more appealing battery leasing options.

As a reminder, the company has a unique purchasing solution that allows the owner to lease the vehicle batteries and pay a monthly subscription. Those driving the smaller VF 8, for example, will pay $35 a month but are limited to 310 miles a month. Should you exceed the limit, you'll be charged an additional $0.11 per mile.

There's an opportunity for VinFast to reduce the lease costs and even increase the mileage limit. Of course, this is all speculation, and we'll only know once the automaker announces a way forward.