VinFast plans to double production in Vietnam
The new factory in Ha Tinh province will mainly produce the VF 3 and VF 5 models for both domestic sales and export, according to the company. The foundation stone has already been laid in Ha Tinh. The speed at which the factory is to be built is remarkable: Operations are scheduled to start in July 2025. VinFast can utilise existing structures for construction: The company’s battery plant is already being built in the complex.
It is not known how much VinFast is investing in the second vehicle factory. With a capacity of 300,000 units, the new factory in the first phase is as large as the existing plant in Haiphong. In the second phase, the new factory is to be able to expand to up to 600,000 cars per year, with up to 15,000 jobs to be created in the final phase. VinFast has not specified when it aims to reach this size.
The construction is due to the increasing demand for small and medium-sized models. “Demand in international markets is also growing rapidly, so the construction of an additional electric car factory in Ha Tinh will create a solid foundation for an important and explosive development phase of VinFast in the coming time,” said Nguyen Viet Quang, deputy chairman and CEO of VinFast’s parent company Vingroup, at the ceremony.
However, it must also be mentioned that VinFast is currently not even close to fully utilising the existing Haiphong plant. The production capacity there is the aforementioned 300,000 vehicles per year. In the first nine months of 2024, however, VinFast delivered fewer than 44,773 cars worldwide according to Reuters; the target for the year as a whole is 80,000 vehicles.
VinFast launched into the world of eMobility with great ambitions and grandiose announcements, presenting five electric car models at the beginning of 2022. However, sales have been rather sluggish so far, with fewer than 35,000 electric cars sold in 2023. Although things are going better in 2024, the annual target (originally even 100,000 cars were the target) is again unlikely to be achieved. The announced US factory has been delayed from 2025 to 2028; instead, VinFast is targeting additional factories in India and Indonesia.
The VinFast VF 6 has also been available to order in Germany since last week, with the compact model starting at 34,990 euros. Some examples of the larger VF 8 are already on the road in Germany, but larger numbers will probably only be achieved with the VF 6.
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