According to a Reuters report on May 29, sources indicate that Vietnamese electric vehicle manufacturer VinFast is considering further delaying its $4 billion investment plan to build a plant in North Carolina, USA.
VinFast announced in 2022 that it would build an electric vehicle and battery factory in the United States with an annual production capacity of 150,000 vehicles, aiming to take advantage of subsidies provided by the Biden administration for American-made electric vehicles. At that time, US President Joe Biden stated that the factory would create over 7,000 jobs and called it a latest example of his economic strategy working.
VinFast initially planned to complete the construction of the factory by July 2024, but later postponed the operational start date to 2025. Insiders claim that the company is now considering another delay.
Last year, VinFast sold fewer than 1,000 vehicles in North America. The company told Reuters, "We are thoroughly reviewing and evaluating all aspects of the plant construction process in North Carolina."
Chatham County, where the VinFast plant in North Carolina is located, declined to comment on the possible delay. A county government spokesperson said VinFast has made two modifications to the size of the factory's final assembly building. The latest revision was submitted in April, and the county's permitting department is still reviewing it.
In the US market, besides sluggish sales, VinFast is also being sued for unpaid showroom rent. Additionally, the company is facing two separate investigations-one concerning an April accident in California involving a VinFast VF 8 vehicle that resulted in four deaths, and the other concerning the use of aluminum in the VF 8 model, which allegedly infringes on ArcelorMittal's patents.
Despite having a factory in northern Vietnam with an annual production capacity of 300,000 vehicles, VinFast sold fewer than 35,000 vehicles globally last year, the vast majority of which were sold in the domestic market. Most of the vehicles sold in Vietnam were also sold to partners.
In 2023, the company's net loss increased by 15%, reaching $2.4 billion.
Overseas Plans
Despite the global weak demand for electric vehicles and ongoing price wars, VinFast stated that its target to sell 100,000 vehicles this year remains unchanged as the company expands overseas, which is more than double its 2023 sales.
In the first quarter of this year, VinFast sold fewer than 10,000 vehicles, but the company attributed this to a slow start to the year, especially in Vietnam.
VinFast plans to expand its vehicle lineup by the end of June, including adding right-hand drive models for markets such as Thailand and Indonesia, and noted that new products should be seen in the second half of this year.
VinFast also confirmed plans to establish an assembly plant in Indonesia and India by 2026.
In Indonesia, VinFast stated, "We expect to start delivering the VF e34 model soon and will launch the VF 5 model in the second quarter."
VinFast was founded in 2017 and has focused on electric vehicles since 2022, but the company is not yet profitable. In the first quarter of this year, it posted a net loss of $618 million, with revenue nearly doubling compared to the same period last year but down 31% from the previous quarter.
According to a Reuters report on May 29, sources indicate that Vietnamese electric vehicle manufacturer VinFast is considering further delaying its $4 billion investment plan to build a plant in North Carolina, USA.
VinFast announced in 2022 that it would build an electric vehicle and battery factory in the United States with an annual production capacity of 150,000 vehicles, aiming to take advantage of subsidies provided by the Biden administration for American-made electric vehicles. At that time, US President Joe Biden stated that the factory would create over 7,000 jobs and called it a latest example of his economic strategy working.
VinFast initially planned to complete the construction of the factory by July 2024, but later postponed the operational start date to 2025. Insiders claim that the company is now considering another delay.
Last year, VinFast sold fewer than 1,000 vehicles in North America. The company told Reuters, "We are thoroughly reviewing and evaluating all aspects of the plant construction process in North Carolina."
Chatham County, where the VinFast plant in North Carolina is located, declined to comment on the possible delay. A county government spokesperson said VinFast has made two modifications to the size of the factory's final assembly building. The latest revision was submitted in April, and the county's permitting department is still reviewing it.
In the US market, besides sluggish sales, VinFast is also being sued for unpaid showroom rent. Additionally, the company is facing two separate investigations-one concerning an April accident in California involving a VinFast VF 8 vehicle that resulted in four deaths, and the other concerning the use of aluminum in the VF 8 model, which allegedly infringes on ArcelorMittal's patents.
Despite having a factory in northern Vietnam with an annual production capacity of 300,000 vehicles, VinFast sold fewer than 35,000 vehicles globally last year, the vast majority of which were sold in the domestic market. Most of the vehicles sold in Vietnam were also sold to partners.
In 2023, the company's net loss increased by 15%, reaching $2.4 billion.
Overseas Plans
Despite the global weak demand for electric vehicles and ongoing price wars, VinFast stated that its target to sell 100,000 vehicles this year remains unchanged as the company expands overseas, which is more than double its 2023 sales.
In the first quarter of this year, VinFast sold fewer than 10,000 vehicles, but the company attributed this to a slow start to the year, especially in Vietnam.
VinFast plans to expand its vehicle lineup by the end of June, including adding right-hand drive models for markets such as Thailand and Indonesia, and noted that new products should be seen in the second half of this year.
VinFast also confirmed plans to establish an assembly plant in Indonesia and India by 2026.
In Indonesia, VinFast stated, "We expect to start delivering the VF e34 model soon and will launch the VF 5 model in the second quarter."
VinFast was founded in 2017 and has focused on electric vehicles since 2022, but the company is not yet profitable. In the first quarter of this year, it posted a net loss of $618 million, with revenue nearly doubling compared to the same period last year but down 31% from the previous quarter.
