VinFast has signed a deal to initially invest $2 billion to build a factory in North Carolina to make electric buses, sport utility vehicles (SUVs) along with batteries for EVs.
The unit of Vietnam’s biggest conglomerate Vingroup plans to have a total investment of $4 billion in its first U.S. factory complex.
Construction of the EV plant is expected to begin this year as soon as the company gets permits, and is expected to finish by July 2024. The plant’s initial capacity will be 150,000 units per year, Vinfast said in a news statement
“With a manufacturing facility right in the U.S. market, VinFast can stabilize prices and shorten product delivery time, making our EVs more accessible to customers,” said Nguyen Thi Thu Thuy, Vingroup vice chair and VinFast Global CEO.
VinFast has begun taking pre-orders globally for two electric SUVs with a goal to begin delivering them in the fourth quarter.
U.S. President Joe Biden said the VinFast investment will create more than 7,000 jobs.
“It builds on recent announcements from companies like GM, Ford, and Siemens to invest in America again and create jobs, said Biden, who set an ambitious goal for half of new car sales to be electric by 2030.”
This will be North Carolina’s first car plant and it is the largest economic development announcement in the state’s history, the governor’s office said in a statement.
VinFast said prices for its VF8 sport SUV started from $41,000 in the United States. By comparison, a Tesla SUV sells for around $63,000. VinFast is targeting global electric vehicle sales of 42,000 this year.
Electric vehicle startups like Rivian and Lucid have slashed their production targets this year due to supply chain disruptions caused by coronavirus.
VinFast plans to transition to all-electric vehicle production from late 2022.
VinFast is also looking for a EV plant in Germany.