Vietnamese automaker VinFast is expected to start construction of a $4 billion electric vehicle factory in North Carolina next week as part of its push to expand in the US market. The unit of Vietnam's largest conglomerate Vingroup, which began operations in 2019, announced plans for the US factory in 2022. It is targeting the start of production in 2025, a year later than its initial plan, Reuters reported July 19.
"When it begins operations, the factory will be VinFast's primary supplier of electric vehicles to the North American market," Thuy Le, head of VinFast Auto, told Reuters.
The project's first phase includes a $2 billion investment in a factory capable of producing 150,000 vehicles a year.
Significance: VinFast is one of several EV startups fighting to maintain a foothold as market leaders Tesla and China's BYD engage in a price war at a time when growth in demand appears to be slowing in major markets. The EV maker, which began to deliver cars to California in March, had earlier received funding pledges of $2.5 billion from its founder and its parent company to fuel its overseas expansion, the Reuters report highlighted.
The Vietnamese automaker expects to sell as many as 50,000 EVs in 2023, an almost sevenfold increase over 2022, and to break even as soon as the end of 2024, the company's founder told the news agency.
