The company said on Tuesday that the dealership, Regal Motor Cars in
Hanoi, had not proven as effective as expected.
However, servicing would remain unaffected for existing customers, with Regal continuing to provide it until the company appoints a new dealer.
The dealership opened in 2014 with a showroom on Ly Thuong Kiet Street in downtown Hoan Kiem District, and a service center on Nguyen Van Linh Street, Long Bien District.
But the focus was on servicing existing vehicles rather than selling large numbers immediately.
There are several hundred Rolls-Royce cars currently in Vietnam, including its latest model, the Cullinan, which costs more than VND32 billion ($138 million) for the standard version.
It is not known if the company is close to finding a new distributor.
Rolls-Royce is a subsidiary of BMW, the German giant, though the two brands operate independently.
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