HANOI (Reuters) – Vietnamese electric vehicle (EV) maker VinFast (NASDAQ: ) on Sunday announced plans to build its second domestic manufacturing plant to double its production capacity, saying it was needed to meet increased demand for its small and medium size models.
VinFast said the new facility is expected to produce 300,000 units per year in its initial phase, the same capacity as the existing plant 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 primarily produce the VF (NYSE:) 3 and VF 5 models for domestic sales and export, with operations scheduled to begin 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 president and CEO of VinFast’s parent company. Vingroup.VinFast, a subsidiary of major Vietnamese conglomerate Vingroup, announced last month that its third-quarter net loss narrowed to $550 million, which it said reflected lower material costs and increased production.
The automaker delivered 44,773 cars during the first nine months of this year, just over 55% of its target of 80,000 units for the year. Company officials said they remain confident of reaching 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 plant in Haiphong. VinFast also announced plans for assembly facilities in Indonesia and India and delayed the start of a planned plant in North Carolina. facility until 2028.
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