HANOI (Reuters) – Vietnamese electric vehicle (EV) manufacturer VinFast on Sunday announced a plan to build its second domestic production plant, which will double its output capacity, according to reports. The new facility is set to produce 300,000 units annually in its initial phase, with the same capacity as its existing plant in Haiphong.
The new factory in the central Ha Tinh province will primarily produce VF 3 and VF 5 models for both domestic sales and export, with operations scheduled to commence in July next year. The company delivered fewer than 45,000 cars worldwide in the first nine months of 2024.
Demand for VinFast’s small and mid-sized models is growing rapidly, with the company’s Vice Chairman and CEO, Nguyen Viet Quang, commenting that the construction of the additional electric car factory will create a solid foundation for a significant and explosive development phase ahead for VinFast.
VinFast, a subsidiary of major Vietnamese conglomerate Vingroup, had reported a narrowed net loss of $550 million in the third quarter, reflecting lower material costs and increased production. The company 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 are confident of reaching the goal.
The new plant will be located in the same complex as VinFast’s battery plant and will use parts from the company’s existing factory in Haiphong. VinFast has also announced plans for assembly plants in Indonesia and India and has delayed the launch of a planned North Carolina facility until 2028.