Vietnam's domestic manufacturing industry has entered a new era.
In a press release from Wednesday, March 29, VinFast announced that it had signed a memorandum of understanding (MoU) with the government of the state of North Carolina to build an electric vehicle (EV) factory. The first phase of the project will involve US$2 billion in investment from VinFast to build an EV and electric bus plant, as well as a facility for manufacturing EV batteries.
With construction expected to begin later this year, the project will cover 800 hectares in the Triangle Innovation Point near the city of Raleigh. Production is set to begin by July 2024, with an initial capacity of 150,000 vehicles per year. The first two EVs made in North Carolina will be the VF 9, a seven-seat SUV; and the VF 8, a five-seat mid-size SUV.
The White House also released a statement on the move, noting that VinFast intends to eventually invest US$4 billion in the EV plant and create over 7,000 jobs. And, in a likely first for a Vietnamese company, President Joe Biden tweeted about VinFast from the official @POTUS Twitter account.
The company's press release quoted VinFast Global CEO Lê Thị Thu Thủy as saying: "North Carolina's strong commitments in building a clean energy economy, fighting climate change and reducing greenhouse gas emissions in transportation make it an ideal location for VinFast to develop its premium, smart and environmentally friendly EVs."
The carmaker expects to begin selling EVs produced at its Hải Phòng factory in the US later this year, where it will face stiff competition from Tesla, which dominates the American EV market. In 2020, Tesla accounted for 79% of all new EVs registered in the country.
[Photo: The entrance of VinFast's Hải Phòng factory/via Otosaigon]
