HANOI (Reuters) – Vietnamese electric vehicle (EV) maker VinFast on Sunday announced a plan to build its second domestic manufacturing plant that will double production capacity, saying this is necessary to meet increased demand for its small and medium-sized models.
VinFast said the new factory is expected to produce 300,000 units annually in the initial phase, the same capacity as the existing factory in Haiphong. The company delivered fewer than 45,000 cars worldwide in the first nine months of 2024.
The new factory in central Ha Tinh province will mainly produce VF 3 and VF 5 models for both domestic sales and exports, and operations will start in July next year, the company said in a statement.
“Demand in international markets is growing rapidly, so the construction of an additional electric car factory will create a solid foundation for an important and explosive development phase ahead for VinFast,” said Nguyen Viet Quang, Vice Chairman and CEO from VinFast’s parent company. company Vingroup.VinFast, a subsidiary of major Vietnamese conglomerate Vingroup, said last month that its third-quarter net loss fell to $550 million, which it said reflected lower material costs and higher production.
The automaker delivered 44,773 cars in the first nine months of this year, just over 55% of its target of 80,000 units for the year. Company officials have said they are confident they will achieve the goal.
The new factory will be located in the same complex as VinFast’s battery factory and will use parts from the company’s existing factory in Haiphong. VinFast has also announced plans for assembly plants in both Indonesia and India, and postponed the launch of a planned plant in North Carolina. facility until 2028.
(Reporting by Phuong Nguyen; Editing by John Mair and Michael Perry)
