HANOI (Reuters) – Vietnamese electric car maker VinFast on Sunday announced a plan to build its second local production plant that will double its production capacity, saying it is needed to meet growing demand for its small and medium-sized models.
VinFast said the new facility is expected to produce 300,000 units annually in its initial phase, the same capacity as its current factory in Haiphong. The company delivered less than 45,000 cars around the world in the first nine months of 2024.
The new plant in central Ha Tinh province will mainly produce VF 3 and VF 5 models for domestic sales and exports, and is scheduled to begin operations in July next year, the company said in a statement.
“Demand in international markets is growing rapidly, so the construction of an additional electric vehicle factory… will create a solid foundation for an important and explosive development phase ahead of VinFast,” said Nguyen Viet Quang, Vice Chairman and CEO of VinFast’s parent company. Vingroup.VinFast, a subsidiary of Vietnamese conglomerate conglomerate Vingroup, said last month that its third-quarter net loss narrowed to $550 million, which it said reflected lower material costs and higher production.
The automaker delivered 44,773 vehicles 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 remained confident of achieving the goal.
The new factory is located in the same complex as VinFast’s battery factory and will use parts of the company’s existing factory in Haiphong. VinFast also announced plans to set up assembly plants in both Indonesia and India, and postponed the launch of its planned North Carolina plant. Facilities until 2028.
(Reporting by Phuong Nguyen; Editing by John Mayer and Michael Perry)
Comments are closed, but trackbacks and pingbacks are open.