Vietnamese electric vehicle (EV) manufacturer VinFast made headlines when it delivered its first cars to the US. The US market is of great importance to the company, and it plans to build a $4 billion factory in North Carolina, after receiving a $1.2 billion incentive package from local authorities.
Initially, the plant was set to be operational by July 2024, but VinFast recently announced that it won’t be possible due to bureaucratic issues. Instead, the factory will begin production in 2025. Depending on when in 2025, this delay could range from six to eighteen months, which is significant.
VinFast explained in a statement that they need more time to complete administrative procedures. Although the company received an Air Permit from local authorities last month, it still requires a permit from the US Army Corps of Engineers to minimize damage to water quality and wetlands.
See also: VinFast makes North American debut with deliveries of VF 8 electric SUV in California
The factory is located on 1,759 acres (712 hectares) of land in Chatham County, North Carolina. It is expected to create more than 7,000 jobs and produce 150,000 vehicles per year in the future. The first phase of the project is valued at $1.4 billion.
The delay is undoubtedly disappointing news for VinFast, who had hoped to make a splash in the US market with its electric cars. However, it’s not uncommon for large construction projects to face bureaucratic challenges that cause delays. VinFast will need to work closely with local authorities to navigate these challenges and move forward with their ambitious plans.
