Vietnamese electric vehicle maker VinFast began operations at its second domestic manufacturing facility on Sunday, as the company seeks to expand output of its compact, urban-focused EV models amid slower progress in its international expansion plans.
The new plant, located in Ha Tinh province, adds an initial production capacity of 200,000 vehicles per year across 36 hectares, according to a company statement. It supplements VinFast’s flagship factory in Haiphong, which is targeting an annual capacity of 950,000 units by 2026.
Backed by parent company Vingroup, Vietnam’s largest conglomerate, VinFast has been pursuing aggressive global growth, including planned production sites in the United States, India, and Indonesia. However, those efforts have encountered challenges, including softer-than-expected demand and heightened competition. The company postponed the launch of its U.S. plant until 2028, while its facility in India is expected to begin operations next month.
“Once operational, the VinFast Ha Tinh factory will contribute to VinFast’s goal of producing 1 million vehicles per year to meet the increasing demand of domestic and foreign markets,” said Nguyen Viet Quang, Vingroup’s CEO.
VinFast has set a delivery goal of 200,000 vehicles in 2025. It sold around 56,000 units in the first five months of this year, primarily in Vietnam. For the first quarter, the company reported a net loss of $712.4 million, narrower than the $1.3 billion loss in the previous quarter but still up 20% year-on-year. Revenue rose sharply to $656.5 million, a 150% increase from a year earlier.