VinFast delays North Carolina factory launch to 2028

Vietnamese electric vehicle (EV) maker VinFast is shelving its scheduled $4 billion factory launch in North Carolina to 2028 and cutting its delivery prediction for this year by 20,000 units amid tensions in the global EV market.

Vietnamese electric vehicle (EV) maker VinFast has announced a delay in the launch of its planned $4 billion factory in North Carolina, now set for 2028 instead of the previously planned 2025.

This decision comes amid uncertainties in the global EV market, leading the company to also cut its delivery forecast for this year by 20,000 units.

Revised Delivery Forecast

VinFast, established by Vietnam’s richest man Pham Nhat Vuong in 2017 and fully transitioning to electric vehicles in 2022, now plans to deliver 80,000 vehicles in 2024, down from an initial target of 100,000.

Despite this reduction, the company reported a 24% increase in sales in the second quarter, with approximately 12,000 vehicles sold.

Overall, VinFast sold 21,747 units in the first half of 2024, a 92% increase compared to the same period last year. However, this figure represents only about one-fourth of the new annual forecast.

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Market Challenges and Adjustments

VinFast cited ongoing economic challenges and uncertainties within the global EV market as reasons for the revised forecast and factory delay.

“While the second-quarter delivery results were encouraging, ongoing economic headwinds and uncertainties in different macro-economies and (the) global EV landscape necessitate a more prudent outlook for the rest of the year,” the company stated on Saturday.

Despite these challenges, VinFast expects strong sales growth in the second half of the year, driven by a diverse product range and expansion into new markets in Asia and strengthening presence in existing markets.

North Carolina Factory Delay

The delay in the North Carolina factory launch, initially reported by Reuters in May, is now confirmed. VinFast announced in 2022 plans to build an EV and battery factory in the United States with an annual production capacity of 150,000 vehicles.

This move was aimed at capitalizing on the Biden administration’s subsidies for American-made EVs. However, the company has adjusted its timeline due to current market conditions.

Broader EV Market Trends

VinFast’s decisions reflect broader trends in the EV market, where high borrowing costs and a shift towards more affordable gasoline-electric hybrids have impacted demand. These factors have prompted many automakers to reassess their plans for new factories and models.

As the EV landscape continues to evolve, companies like VinFast are navigating a complex and dynamic market environment to align their strategies with current economic realities.