By Phuong Nguyen
HANOI (Reuters) – Vietnamese electric vehicle maker VinFast has postponed the launch of its planned $4 billion North Carolina factory to 2028 and cut its delivery forecast for this year by about 20,000 units amid uncertainty in the global electric vehicle market.
Vinfast, founded by Vietnam’s richest man Pham Nhat Phuong in 2017 and which switched to making all-electric vehicles in 2022, said it would now deliver 80,000 vehicles this year, down from the 100,000 initially planned.
The Vietnamese electric carmaker’s sales rose 24% to about 12,000 vehicles in the second quarter, compared with the previous three-month period. In total, Vinfast sold 21,747 units in the first half of 2024, up 92% from the same period last year but about a quarter of the new annual forecast.
“While second-quarter delivery results were encouraging, ongoing economic headwinds and uncertainties in various macroeconomics and the global EV landscape require a more prudent outlook for the rest of the year,” Finfast said in a statement on Saturday.
The electric vehicle maker still expects strong sales growth in the second half of the year, driven by a diversified product lineup and expansion in key regions, including new markets in Asia and existing ones.
In its statement, VinFast said it would delay the launch of its planned North Carolina plant to 2028 from the current 2025 plan. Reuters reported in May that there could be a delay, citing a person familiar with the matter.
VinFast announced in 2022 that it would build an electric vehicle and battery plant in the United States with an annual production capacity of 150,000 vehicles, seeking to capitalize on the Biden administration’s efforts to approve support for American-made electric vehicles.
However, demand for electric vehicles has slumped amid rising borrowing costs and as buyers switch to cheaper gasoline-electric hybrids, forcing many automakers to reevaluate their plans for new plants and models.
“This decision will allow the company to improve capital allocation and manage its short-term spending more effectively, focusing more resources to support near-term growth objectives and strengthen existing operations,” FinFast said.
“The amendment does not change VinFast’s core growth strategy and key operating objectives.”
FinFast, which has yet to turn a profit, reported a net loss of $618 million in the first quarter. Revenue for the period nearly tripled from a year earlier but was down 31% from the previous three months.
The company is scheduled to report second-quarter results on August 15.