VinFast plans significantly smaller US factory

VinFast plans to resume construction of its North Carolina plant later this year and begin production there in 2028. However, only 1,400 people will be employed - far fewer than the initially promised 7,500 employees.

A quick recap: VinFast announced in 2022 that it would begin producing electric vehicles (EVs) in the USA by mid-2024, but later postponed the start of production to 2025. In July 2024, the planned production start in North Carolina was delayed by three years to 2028 – and since then, there has been little news about the Asian company’s planned US factory.

However, the Vietnamese EV manufacturer has now provided an update on its plans in the earnings report accompanying its latest financial results. Despite current market developments in the USA, it has reaffirmed the 2028 production start. “The Company expects to continue expanding production capacity for EVs and e-scooters in Vietnam while evaluating further development phases in India and Indonesia to position these facilities as future export hubs. VinFast also expects to resume construction of the North Carolina manufacturing facility in 2026, with a planned SOP in 2028,” states the Business Outlook section of the earnings report.

According to Business North Carolina, VinFast has informed local authorities that the plant in Chatham County will employ around 1,400 workers – approximately 80% fewer than the originally promised 7,500 jobs. The publication sees this as evidence of the ‘a more sober outlook for EVs now than four years ago’. “Presuming the factory starts assembling cars, it would remain a major North Carolina signature business-recruiting success, but not nearly the impact expected previously,” the article states. This reduction is also likely to affect the promised subsidies. In 2022, state and local authorities pledged around $315 million in funding, which was tied to VinFast’s total investments and the previously announced 7,500 jobs.

The Business North Carolina report further states that, under the agreement, VinFast would be required to reimburse the US state for up to $125 million in site preparation costs if the company fails to create at least 3,875 jobs. Additionally, the agreement includes further measures, such as the state’s right to repurchase all or part of the site if VinFast fails to meet agreed milestones for job creation or plant construction.

VinFast does not address these figures in its earnings report but acknowledges another development related to the US factory: in the fourth quarter of 2025, the company recorded an ‘impairment charge’ of $235.6 million for the North Carolina plant, representing a nine-figure write-down. “This impairment charge reflects management’s decision to take a disciplined approach to accounting adjustment associated with changes in project timing and development assumptions. It does not represent a change in our long-term strategic commitment to the U.S. market,” the company stated officially.

sec.gov (earnings report), businessnc.com, bloomberg.com (Paywall)