VinFast signs deal to build electric vehicle factory in US

VinFast VF9, the top model among its electric sport utility vehicles

Vietnam’s homegrown automaker VinFast said on March 29 that it has signed a preliminary deal to set up a factory in the US state of North Carolina to manufacture electric sport utility vehicles and electric buses, as well as batteries for electric vehicles.

The move comes after the company said in March last year that is has respective plans for a US manufacturing site in addition to its existing research and development facility in San Francisco, California.

The company, part of Vietnam conglomerate Vingroup, said it would initially invest $2 billion in the plant, its first in the US, and plans to have a total investment of $4 billion. Construction would begin this year as soon as all necessary permits are issued and is expected to be completed by July 2024. The initial capacity of the facility will be 150,000 units per year.

Making vehicles “more accessible” to US customers

“With a manufacturing facility right in the US market, VinFast can stabilise prices and shorten product delivery time, making our electric vehicles more accessible to customers,” Nguyen Thi Thu Thuy, Vingroup vice chairperson and VinFast global CEO, said in an announcement.

The facility will be North Carolina’s first car plant and it is the largest economic development announcement in the state’s history, the governor’s office said in a statement.

Price war with Tesla

VinFast said prices for its entry sport utility vehicle VF8 will begin at $41,000 in the US, clearly competitive to Tesla’s compact sport utility vehicle Model Y which starts at around $64,000.

Outside of North America, the company is looking to set up a plant in Germany, it said in January.

VinFast further plans an initial public offering in the US in the second half of 2022 in which it could raise as much as $3 billion and reach a company valuation of $60 billion.



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[caption id="attachment_38342" align="alignleft" width="300"] VinFast VF9, the top model among its electric sport utility vehicles[/caption] Vietnam’s homegrown automaker VinFast said on March 29 that it has signed a preliminary deal to set up a factory in the US state of North Carolina to manufacture electric sport utility vehicles and electric buses, as well as batteries for electric vehicles. The move comes after the company said in March last year that is has respective plans for a US manufacturing site in addition to its existing research and development facility in San Francisco, California. The company, part of Vietnam conglomerate Vingroup, said...

VinFast VF9, the top model among its electric sport utility vehicles

Vietnam’s homegrown automaker VinFast said on March 29 that it has signed a preliminary deal to set up a factory in the US state of North Carolina to manufacture electric sport utility vehicles and electric buses, as well as batteries for electric vehicles.

The move comes after the company said in March last year that is has respective plans for a US manufacturing site in addition to its existing research and development facility in San Francisco, California.

The company, part of Vietnam conglomerate Vingroup, said it would initially invest $2 billion in the plant, its first in the US, and plans to have a total investment of $4 billion. Construction would begin this year as soon as all necessary permits are issued and is expected to be completed by July 2024. The initial capacity of the facility will be 150,000 units per year.

Making vehicles “more accessible” to US customers

“With a manufacturing facility right in the US market, VinFast can stabilise prices and shorten product delivery time, making our electric vehicles more accessible to customers,” Nguyen Thi Thu Thuy, Vingroup vice chairperson and VinFast global CEO, said in an announcement.

The facility will be North Carolina’s first car plant and it is the largest economic development announcement in the state’s history, the governor’s office said in a statement.

Price war with Tesla

VinFast said prices for its entry sport utility vehicle VF8 will begin at $41,000 in the US, clearly competitive to Tesla’s compact sport utility vehicle Model Y which starts at around $64,000.

Outside of North America, the company is looking to set up a plant in Germany, it said in January.

VinFast further plans an initial public offering in the US in the second half of 2022 in which it could raise as much as $3 billion and reach a company valuation of $60 billion.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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