VinFast Delays Production at North Carolina Plant

VinFast, the Vietnamese automaker, has once again postponed production at its promised plant in North Carolina. The initial production start date was scheduled for this month, but it has now been pushed back to 2028. This delay comes as VinFast only managed to sell 21,747 vehicles in the first half of the year.

Strategic Decision to Delay

Following a challenging launch in the United States and a slowdown in electric vehicle adoption, VinFast has made a strategic decision to halt production at their North Carolina manufacturing facility. Originally announced in March 2022, the plant was expected to produce vehicles starting in July 2024, with an annual capacity of up to 150,000 VF 8s and VF 9s.

Setbacks and Challenges

Despite receiving a $1.2 billion incentive package from North Carolina, VinFast faced setbacks in the construction process. The company downsized the plant significantly, leading to minimal progress since the groundbreaking ceremony in 2023. The site remains undeveloped, with little more than a patch of dirt visible.

Future Plans and Optimizations

VinFast now aims to commence production in 2028, four years behind the original schedule. The company cited the need to optimize capital allocation and manage short-term spending effectively as reasons for the delay. Chairwoman Madam Thuy Le emphasized the company’s long-term strategy and execution capabilities to navigate market challenges.

Sales Projections and Challenges

Despite the production delays, VinFast reported delivering 12,058 vehicles in the second quarter, marking a 26% improvement from the previous year. The company aims to sell approximately 80,000 vehicles globally, a significant increase from 2023. However, with only 21,747 vehicles delivered in the first half of the year, VinFast faces the challenge of nearly tripling their sales rate to meet year-end targets.