VinFast, the Vietnamese electric vehicle (EV) manufacturer, announced plans on Sunday to construct a second production facility in Vietnam. This new plant will effectively double the company’s output capacity, addressing the rising demand for its small and mid-sized EV models. The new facility, located in the central Ha Tinh province, is projected to manufacture 300,000 units annually in its initial phase, matching the capacity of VinFast’s existing plant in Haiphong.
This expansion is strategically important for VinFast, as it seeks to meet growing international demand for its VF 3 and VF 5 models. The Ha Tinh plant will primarily produce these two models for both the domestic Vietnamese market and export. Operations are scheduled to commence in July 2025. Nguyen Viet Quang, Vice Chairman and CEO of Vingroup, VinFast’s parent company, emphasized the significance of this new facility. He stated that the increasing demand in international markets necessitates the additional production capacity, laying a strong foundation for VinFast’s next phase of growth.
VinFast, a subsidiary of the prominent Vietnamese conglomerate Vingroup, reported a narrowed third-quarter net loss of $550 million last month. The company attributed this improvement to lower material costs and increased production. Despite delivering 44,773 cars in the first nine months of 2024, falling short of its 80,000-unit annual target, VinFast officials remain confident in achieving their goal. The strategic location of the new plant within the same complex as VinFast’s battery plant will streamline operations. The facility will also utilize parts from the existing Haiphong factory, optimizing resource allocation.
Beyond its domestic expansion, VinFast has outlined plans for assembly plants in Indonesia and India. However, the launch of its planned North Carolina facility has been postponed to 2028. This focused approach to expanding production capacity underscores VinFast’s commitment to meeting the escalating global demand for electric vehicles and solidifies its position as a key player in the EV market. The new plant signals a significant step in VinFast’s ambitious growth strategy, paving the way for increased production and a stronger global presence in the competitive electric vehicle landscape.
