Vietnam’s VinFast to invest $2B in North Carolina EV factory

Vingroup, the company that runs VinFast, said Tuesday that it will build a factory in North Carolina, part of the company's previously stated plans to invest and expand in the country.

The automotive newcomer said it will spend $2 billion in the first phase of the North Carolina factory and will continue to invest in future phases. The first phase will have the capacity to produce 150,000 vehicles annually.

VinFast plans to produce two passenger vehicles at the factory as well as electric buses, batteries for electric vehicles and ancillary industries for suppliers.

The VinFast VF 9, a 7-passenger all-electric SUV, and the VinFast VF 8, a 5-passenger, all-electric SUV, will be produced at the U.S. factory. The VF 9 and VF 8 start at $56,000 and $41,000 in the US, respectively, the company shared at the Consumer Electronics Show in January.

VinFast has had a fast and furious ride. The company became Vietnam's first domestic car manufacturer when it launched gas-powered models in 2019. VinFast will build electric vehicles by late 2022.

It has made the U.S. market one of its primary targets, and it will face stiff competition from established companies like GM, Ford andTesla as well as EV newcomers Rivian and Fisker.

At the LA Auto Show last November, VinFast showed off two electric crossovers that the company said it would bring to the U.S. market later this year. The company plans to invest more than $200 million to open a U.S. headquarters in Los Angeles, as well as more than 60 sales locations, multiple service centers and mobile service sites this year.

VinFast will be better able to manage its supply chain, maintain prices and shorten product supply time if it has a production facility in the market.

VinFast, which started selling EV in Vietnam at the end of 2021, is targeting global EV sales of 42,000 vehicles this year. Vingroup started construction on a battery plant in Ha Tinh, Vietnam that is expected to have a capacity of 5 gigawatt hours per year. The company is looking for a plant in Germany.