VinFast delays the opening of its North Carolina factory to 2028
Add Axios as your preferred source to
see more of our stories on Google.
Photo: Linh Pham/Bloomberg via Getty Images
VinFast's planned North Carolina electric vehicle plant is facing another significant setback, with the Vietnamese automaker delaying the opening of its Chatham County facility until 2028, four years later than its initial goal.
Why it matters: The EV maker's $4 billion plant is projected to be one of the largest manufacturing facilities in the state — potentially employing 7,500 people — if it ever gets off the ground.
- The project, which could earn $1.2 billion in incentives from the state and local governments, has seen a continuous string of delays.
State of play: When the company announced it was expanding to North Carolina two years ago, it set an ambitious deadline of producing cars here by 2024.
Driving the news: VinFast said in a statement that delaying the construction of the plant would help it "optimize its capital allocation and manage its short-term spending more effectively," according to Reuters.
- The company also revised its forecast of sales this year to 80,000 vehicles, down from 100,000, citing "economic headwinds."
By the numbers: VinFast reported selling 21,747 units in the first half of 2024, up 92% compared to last year.
- But the company has not yet turned a profit and is losing a significant amount of money, including $618 million in the first quarter, per Reuters.
The intrigue: The state's agreement offers some protection against VinFast, if the automaker never builds its factory.
- A large portion of the incentives package is contingent on VinFast meeting hiring and investment goals.
- The state can also buy back the land from VinFast if it misses hiring deadlines, including a July 1, 2026 one, the News & Observer reported.