North Carolina sues VinFast to take back control of Chatham County land
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A VinFast factory in Vietnam. Photo: Linh Pham/Bloomberg via Getty Images
N.C. Attorney General Jeff Jackson is suing the Vietnamese car maker VinFast, alleging the electric vehicle company breached its agreement with the state to build a manufacturing facility in Chatham County.
Why it matters: Announced with much fanfare in 2024, VinFast's promise to build a $4 billion EV plant in Chatham County and employ some 7,500 workers has not materialized, according to the lawsuit.
- The lawsuit is part of an effort by the state to re-acquire the 1,765-acre site from VinFast and begin marketing it to new companies.
Driving the news: The lawsuit, filed in Wake County, alleges that VinFast has defaulted on its agreements with the state.
- State and local governments had pledged more than $1.2 billion in incentives for the company — if it meets hiring and investment goals — including several hundred millions of dollars toward road and land improvements.
What they're saying: "North Carolina will always compete aggressively for jobs and investment, but we also protect taxpayers by requiring the company to hold up its end of the deal," Gov. Josh Stein said in a statement about the lawsuit.
- "VinFast has not fulfilled its commitments," he added. "Today's action is about protecting taxpayers and getting the Chatham County mega-site back on the market to support future good-paying manufacturing jobs."
Zoom in: North Carolina's initial agreement with VinFast offered some protections against a delayed project.
- Last year, VinFast delayed an initial opening of the North Carolina to 2028 and said earlier this year that it would reduce hiring from 7,500 to around 1,400.
- The state says it has the option to buy back the land from VinFast if it misses hiring deadlines, including one on July 1.
- VinFast has cleared the property, which is located off U.S. 1 near Moncure, but that effort was reimbursed by the state.
- The lawsuit alleges VinFast abandoned work on the site for over a year, starting in December 2024.
- VinFast has not yet responded to a request for comment.
The big picture: VinFast has struggled with hitting sales goals since launching into the EV space, especially in the North American market.
- The company closed many of its dealerships in the U.S. last year, including one in Cary.