Three years later than anticipated, VinFast, a Vietnamese manufacturer of electric vehicles (EVs), is delaying the official launch of its North Carolina factory until 2028 because of changes in the worldwide market and challenging economic conditions.
The building was scheduled to open in the summer. However, a news release issued on Friday stated that VinFast plans to start producing the manufacturing plant in 2028.
“This decision will allow the company to optimize its capital allocation and manage its short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations…The adjustment doesn’t change VinFast’s fundamental growth strategy and key operating targets, the company wrote in the release.
Newsng gathered that VinFast’s original goal was to boost its position in the EV market by opening the $4 billion facility by 2025.
However, persistent uncertainty and economic difficulties have forced the business to maximise its resources and postpone the project.
The EV maker reduced its projected 2024 car delivery number from 100,000 to 80,000 in light of these difficulties.
“We have adopted a more prudent outlook that is carefully calibrated to near-term headwinds, taking into full consideration the realities of market volatility and potential challenges.
“Our robust long-term strategy and proven execution capabilities position us well to meet the evolving needs of the dynamic global EV market,” Madam Thuy Le, Chairwoman of the Board of Directors, said in the release.
VinFast officials stated as late as last month that the business was in the process of choosing subcontractors for the North Carolina location, which Chatham County needed to issue a major building permit.
VinFast was given an incentive grant by the state in March 2022 to invest $4 billion in manufacturing and create 7,500 jobs.
The manufacturer had committed to adding at least 1,997 new jobs by the end of this year as part of the agreement.
We earlier reported that An investment agreement worth over $1 billion was inked between the Industry and Technology Ministry and Chinese EV)l, giant, BYD to establish a plant in Turkey.
