A Vietnamese electric vehicle manufacturer has clinched the top spot in domestic car sales, amid the country's growing demand for EVs.

New car sales in Vietnam reached about 490,000 units last year, up 20 percent from the previous year. EV maker VinFast says its sales accounted for more than 87,000 of that total, giving it the biggest share of the domestic market and marking the first time a local company surpassed South Korean and Japanese rivals.

VinFast says its VF3 launched last year was a hit. The mini sport utility vehicle costs roughly half the price of other models and is especially popular with younger female customers.

The company has begun exporting the VF3 and says it is eager to further expand its EV manufacturing.