19-7-2023 (HANOI) Vietnamese automaker VinFast has announced that it will begin construction of a $4bn electric vehicle factory in North Carolina next week as part of its strategy for expansion in the US market. The unit of Vietnam’s largest conglomerate Vingroup, which began operations in 2019, revealed its plans for the US factory last year, with the aim of commencing production in 2025. VinFast is one of several electric vehicle startups striving to maintain a foothold in a market led by Tesla and China’s BYD.
“When it begins operations, the factory will be VinFast’s primary supplier of electric vehicles to the North American market,” said Thuy Le, head of VinFast Auto. The project’s first phase involves a $2bn investment in a factory capable of producing 150,000 vehicles annually.
VinFast had earlier announced its intention to raise funds for its North Carolina plant via a US initial public offering, but in May opted for a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co. The Vietnamese automaker expects to sell up to 50,000 electric vehicles this year, an almost seven-fold increase over 2022, and to break even by the end of 2024, according to the company’s founder.
