“VinFast revs up its global ambitions with a $4 billion electric vehicle factory in North Carolina, solidifying its position as a key player in the US market.”
Vietnamese automaker VinFast will commence the construction of a $4 billion electric vehicle factory in North Carolina next week as part of its efforts to expand in the US market. The subsidiary of Vietnam’s largest conglomerate Vingroup (VIC.HM) plans to start production in 2025, a year later than originally planned. The factory’s initial phase will involve a $2 billion investment and will have the capacity to produce 150,000 vehicles annually. VinFast is among several electric vehicle startups competing against market leaders Tesla (TSLA.O) and China’s BYD (002594.SZ) amid a slowdown in demand in major markets. The company, which already began delivering cars to California in March, had previously secured $2.5 billion in funding from its founder and parent company to support its overseas expansion. Instead of an initial public offering, VinFast went public through a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co. in May. The automaker aims to sell up to 50,000 EVs this year, a nearly seven-fold increase from 2022, and expects to break even by the end of 2024. The expansion in North Carolina is a strategic move by VinFast to establish a strong presence in the US electric vehicle market.
HANOI, July 19 (Reuters) – Vietnamese automaker VinFast said on Wednesday it would start construction of a $4 billion electric vehicle factory in North Carolina next week as part of its push to expand in the United States market.
The unit of Vietnam’s largest conglomerate Vingroup (VIC.HM), which began operations in 2019, announced plans for the U.S. factory last year. It is targeting the start of production in 2025, a year later than its initial plan.
“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 includes a $2 billion investment in a factory capable of producing 150,000 vehicles a year.
VinFast is one of several EV startups fighting to maintain a foothold as market leaders Tesla (TSLA.O) and China’s BYD (002594.SZ) 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.
Vinfast had filed for a U.S. initial public offering in hopes of raising funds for its North Carolina plant, but in May announced it would instead go public through a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co.
The Vietnamese automaker expects to sell as many as 50,000 EVs this year, an almost seven-fold increase over 2022, and to break even as soon as the end of 2024, the company’s founder has said.
Vietnamese automaker VinFast is set to begin construction on a $4 billion electric vehicle factory in North Carolina next week, as the company looks to expand its presence in the US market.
The factory, which is being run by the subsidiary of Vietnam’s largest conglomerate Vingroup (VIC.HM), is expected to begin production in 2025. The first phase of the project is estimated to include a $2 billion investment for a factory capable of producing 150,000 vehicles a year.
VinFast is among a number of EV startups competing with Tesla (TSLA.O) and China’s BYD (002594.SZ) in the market, and has already delivered its cars to California in March. The company had previously received funding pledges of $2.5 billion from its founder and its parent company to support its expansion.
VinFast had initially planned to hold an initial public offering in the US in order to raise funds for the factory, but instead went public through a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co. in May.
The automaker is aiming to sell as many as 50,000 EVs this year, a significant increase from 2022, and is aiming to break even as soon as the end of 2024. With the planned expansion in North Carolina, VinFast is looking to become a major player in the US electric vehicle market.
