Vietnamese electric vehicle manufacturer VinFast announced on Sunday its plan to construct a second domestic production facility, aiming to double its annual output capacity to meet increasing demand for its compact and mid-sized EV models.
The new factory, located in Ha Tinh province, is designed to produce up to 300,000 units per year in its initial phaseâmatching the capacity of VinFast’s existing plant in Haiphong. Scheduled to begin operations in July 2025, the facility will focus on producing the VF 3 and VF 5 models for both domestic and international markets, according to a company statement.
“Demand in international markets is growing rapidly, so the construction of an additional electric car factory… will create a solid foundation for an important and explosive development phase ahead for VinFast,” said Nguyen Viet Quang, Vice Chairman and CEO of Vingroup, VinFast’s parent company.
The announcement comes as VinFast seeks to accelerate its global expansion. The company delivered 44,773 vehicles worldwide in the first nine months of 2024, achieving just over 55% of its full-year target of 80,000 units. Despite falling short of its target pace, company executives remain optimistic about meeting their annual goal.
VinFast reported a narrowing of its third-quarter net loss to $550 million, attributing the improvement to reduced material costs and increased production efficiency. The Ha Tinh facility, which will share a complex with VinFast’s battery manufacturing plant, will source components from the companyâs existing Haiphong factory.
In addition to its domestic expansion, VinFast has outlined plans for assembly plants in Indonesia and India, although its planned U.S. facility in North Carolina has been postponed until 2028.