VinFast Plans to Restart Construction at North Carolina Plant

VinFast, the Vietnamese electric vehicle manufacturer, is looking to restart construction at its stalled North Carolina factory, according to the company’s latest SEC filing. The announcement comes as several major automakers have pulled back on EV investments amid tariff and policy headwinds.

VinFast’s American ambitions ran high early in the decade but struggled to gain traction as buyers proved reluctant to purchase EVs from an unfamiliar brand. Critical reviews of its vehicles, particularly the VF8 crossover, compounded the challenge. The company signed a memorandum of understanding with North Carolina in 2022, with the plant originally expected to produce the VF8 and VF9 SUVs by 2024. Construction was halted that same year, with VinFast citing economic headwinds.

The revised plan is considerably scaled back. Company officials told state representatives to expect roughly 1,400 jobs, an 80% reduction from the 7,500 originally promised.

The timing is difficult. Ford, Honda, and Stellantis have all significantly reduced their U.S. EV commitments, and the removal of the $7,500 federal tax credit has made it easier for automakers to shift focus back to gas and hybrid vehicles. VinFast itself reported a $3.9 billion net loss for 2025, including a $235.6 million impairment charge tied to the North Carolina plant.

The stakes are high. VinFast has been promised $315 million in state and local incentives over 32 years and could face repayment of $125 million in site preparation costs if it fails to create 3,875 jobs. North Carolina also retains the option to repurchase the site if key milestones are missed, including 1,750 jobs by year’s end.

“We ⁠are committed to the U.S. market… and have been working in the background on that, VinFast Chairperson Thuy ​Le said during an investor briefing, adding that the company was targeting a soft launch in 2028.

EV Deliveries Jump as VinFast Eyes Global Expansion

VinFast delivered 86,557 EVs in the fourth quarter, a 127% increase from the third quarter and 63% higher than a year earlier. Vietnam accounted for nearly 80% of those deliveries, reflecting continued strong domestic demand.

Two-wheeler deliveries surged over 450% year-on-year to nearly 172,000 units, driven in part by Hanoi’s ban on petrol-powered motorbikes from the city center beginning mid-year.

For the full year, revenue rose 105% to $3.6 billion. VinFast, a subsidiary of conglomerate Vingroup, expects to break even by year’s end, though analyst Ollie Coughlin of Third Bridge cautioned that the company’s high cash burn rate raises questions about its ability to fund required capital expenditures.

A free-charging program launched in December 2024 pushed up costs but helped accelerate sales. “It is expensive, but at the same time it is a good investment,” said VinFast Chair Thuy Le.

Looking ahead, VinFast aims to deliver at least 300,000 EVs globally this year while growing its two-wheeler business to 2.5 times its 2025 volume. Target markets include India, Indonesia, Malaysia, Thailand, and the Philippines.

The company also plans to launch range-extended electric vehicles in Vietnam in 2027, pairing small petrol engines with battery packs as a transitional solution in markets where charging infrastructure remains underdeveloped.

“We view range extender technology as a practical interim step in the transition from internal combustion engines to fully battery-powered vehicles,” said senior executive Anne Pham.