VinFast Unveils Plan for New Electric Vehicle Plant to Double Production Capacity
Vietnamese electric vehicle manufacturer VinFast has announced its intention to build a second domestic production plant in order to increase its output capacity, citing a rising demand for its small and mid-sized models.
The new facility, located in the central Ha Tinh province, is expected to produce 300,000 units annually in its initial phase, matching the capacity of its existing plant in Haiphong. This move comes as the company delivered fewer than 45,000 cars worldwide in the first nine months of 2024.
VinFast’s new plant will focus on producing VF 3 and VF 5 models for both domestic and export markets, with operations scheduled to begin in July next year. The company’s Vice Chairman and CEO, Nguyen Viet Quang, expressed optimism about the growth potential of VinFast in international markets, emphasizing the strategic importance of expanding production capacity.
The automaker, a subsidiary of Vietnamese conglomerate Vingroup, reported a third-quarter net loss of $550 million, attributing the decrease to lower material costs and increased production. Despite delivering 44,773 cars in the first nine months of the year, slightly over half of its annual target, VinFast remains confident in achieving its goals.
In addition to the new plant in Ha Tinh, VinFast has plans for assembly plants in Indonesia and India, while postponing the launch of a North Carolina facility to 2028. The new plant will be located near VinFast’s battery plant and will utilize components from its existing Haiphong factory.
In summary, VinFast’s expansion plans reflect its ambition to capitalize on the growing demand for electric vehicles globally. The increase in production capacity is aimed at meeting market needs and positioning the company for future growth opportunities. Investors and consumers alike should keep an eye on VinFast’s developments as they navigate the competitive EV market landscape.
