Vietnamese electric vehicle (EV) maker VinFast is considering further delaying its planned $4 billion factory in North Carolina, a move prompted by challenges in winning over U.S. consumers. The company’s initial announcement in 2022 outlined plans for an EV and battery plant with a yearly production capacity of 150,000 vehicles, aiming to capitalize on the Biden administration’s push for EV subsidies for American-made cars.
Originally slated for completion in July 2024, VinFast had already postponed the start of operations to 2025. Now, a source familiar with the matter suggests another delay is under consideration, though the company is yet to make a public statement.
VinFast, which sold fewer than 1,000 cars in North America last year, is currently reviewing all aspects of the construction process for its North Carolina factory. In a statement to Reuters, the company stated, “We are conducting a thorough review and evaluation of all aspects of the construction process for our North Carolina factory.”
Despite not being aware of any delay, a spokesperson for North Carolina’s Chatham County confirmed that VinFast had revised the size of the factory’s general assembly building twice. The latest revision was submitted in April and is still under review.
When VinFast first announced its North Carolina factory plans in March 2022, U.S. President Joe Biden lauded the move, stating, “It’s the latest example of my economic strategy at work.”
VinFast’s challenges extend beyond construction delays. The company faces low sales figures, a lawsuit for failing to pay showroom rent, and two separate probesâone related to a fatal April crash in California involving a VinFast VF 8 car, and another for alleged patent violations regarding the aluminum used in the VF 8.
Despite these setbacks, VinFast remains committed to its goal of selling 100,000 cars this year, double its 2023 target. It has also announced plans to expand its vehicle lineup, including models with right-hand drive for markets like Thailand and Indonesia.
VinFast’s expansion plans include establishing an assembly plant in Indonesia and another in India by 2026. The company aims to begin deliveries of its VF e34 model in Indonesia soon and launch the VF 5 model within the second quarter.
Founded in 2017 and focused on EVs since 2022, VinFast has yet to turn a profit. In the first quarter of this year, the company reported a net loss of $618 million, despite nearly tripling revenues from a year earlier.
