Less than six months after debuting its first electric vehicles in the United States, Vietnamese EV manufacturer VinFast announced on Tuesday its plans to begin construction of an EV factory in Chatham County, North Carolina, starting next Friday.
What Happened: The factory, spanning 1,800 acres, will initially have a production capacity of 150,000 vehicles per year, with operations expected to commence in 2025, according to the company’s statement. “When it begins operations, the factory will be VinFast’s primary supplier of electric vehicles to the North American market, allowing us to optimize production and business activities,” CEO Madam Le Thi Thu Thuy said.
The facility will include dedicated areas for EV production, assembly, and supplier businesses, as per VinFast. In recognition of the project, the State of North Carolina awarded VinFast a $1.2 billion incentive package last year.
Why It Matters: VinFast, seen as a potential rival to Tesla Inc TSLA, eyes listing on the New York stock exchange via a SPAC merger with Black Spade Acquisition Co. The merger values the company at an enterprise value of $27 billion and is expected to close in the second half of this year.
VinFast was founded in 2017 by Vietnamese billionaire Pham Nhat Vuong. It entered the U.S. market earlier this year in March with the delivery of 45 VF 8 City Edition SUVs. Since commencing deliveries, its vehicles have reaped multiple bad reviews and also a recall for 999 of its vehicles due to an underlying issue that causes its displays to go blank.
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