Written by / Zhu Lin
Edited / Tu Yanping
Design / Shi Yuchao
Source/FutureCar, thedetroitbureau, by FutureCar Staff, Paul A. Eisenstein
Vietnamese electric vehicle startup VinFast announced that it has signed a memorandum of understanding with the government of the U.S. state of North Carolina to establish its first North American electric vehicle manufacturing plant in the state.
The plant will have the capacity to build 150,000 electric vehicles per year.
The North Carolina Department of Commerce helped coordinate the recruitment of VinFast to build a facility there, which also involves collaboration between state, regional, and local organizations.
The North Carolina Economic and Investment Commission voted to approve an incentive program worth more than $850 million for VinFast's auto and battery assembly plant in Chatham County.
North Carolina Governor Roy Cooper
The plant is located at the Triangle Innovation Key MegaBase in Chatham County, North Carolina, where VinFast will create an electric vehicle manufacturing center with a total area of 1,977 acres and three main areas: electric and bus production, assembly, and electric vehicle battery production.
According to the memorandum of understanding, VinFast will continue to invest in the plant in the future phase. The final investment is expected to reach $6.5 billion. The number of people employed could reach 13,000.
The company intends to invest $2 billion in the first phase of the project, creating thousands of jobs. The first phase of the project will begin construction in 2022 after obtaining the construction permit, and production of vehicles is expected to begin in July 2024.
"North Carolina is fast becoming the center of our nation's emerging clean energy economy." North Carolina Gov. Roy Cooper said, "VinFast's transformation program will bring many good jobs to our state, while helping to reduce greenhouse gas emissions and make the environment healthier as more electric vehicles hit the road." ”
Global presence
Founded in 2017, VinFast is a subsidiary of the conglomerate Vingroup. Vingroup is the largest private enterprise in Vietnam and is an integrated business that operates a wide range of businesses, including schools, shopping malls, hospitals and resorts.
The company says it is firmly committed to creating a sustainable future for everyone, with its advanced smart services, seamless customer experience and affordable pricing strategy inspiring customers to work together to create a smart and sustainable future of electric mobility.
It has established global operations in the United States, Canada, Germany, France and the Netherlands. VinFast currently manufactures electric vehicles in Vietnam, including electric motorcycles, electric buses and electric vehicles, and launches charging stations and green energy solutions.
VinFast has a technologically mature car manufacturing plant in Haiphong, Vietnam, which will have the capacity to produce 950,000 electric vehicles per year by 2026. The company completed the construction of the plant in just 21 months and developed the first three models.
According to the plan, VinFast will launch global showrooms in the United States, Canada and Europe, which is one of the reasons why it wants to build a factory in the United States and enter the electric vehicle field.
Le Thi Thuy, vice chairman of Vingroup and global CEO of VinFast, said: "Having a production site in the market will help VinFast proactively manage its supply chain, maintain stable prices and shorten product availability times, making VinFast's electric vehicles more acceptable to customers. ”
"North Carolina has made a strong commitment to building a clean energy economy, tackling climate change, and reducing greenhouse gas emissions from transportation, making it an ideal location for VinFast to develop its premium, smart, and environmentally friendly electric vehicles."
New models
VinFast produced a modified version of its first car, the BMW X5 SUV, in 2019 and launched the VF e34 compact SUV in the Vietnamese market in 2021.
But during the November 2021 Los Angeles Auto Show, the company announced a shift in strategic direction, planning to phase out fuel vehicles and switch to pure electric vehicles.
At the same time, it released two new models, including the VinFast VF 9, a 7-seater all-electric SUV, and the VF 8, a smaller 5-seater midsize SUV.
The two electric SUVs, designed in conjunction with Italian company Pininfarina, are scheduled to be produced at the North Carolina plant and will be available first in Europe in the second half of 2022 and in the United States by the end of the year.
VinFast plans to learn from the early experience of Japanese and Korean automakers, attracting consumers with a value-oriented focus, offering a large number of features at relatively mainstream prices. For example, VF8 starts at $41,000 and VF9 at $56,000.
The evicteur maker also unveiled three more electric vehicles at the 2022 Consumer Electronics Show: the VF 5, VF 6 and VF 7. With these five models, the VinFast is said to be able to serve all five major automotive segments, from small crossovers to full-size SUVs.
North Carolina Commerce Secretary Machelle Baker Sanders said, "Auto assembly plants are huge engines of economic growth because they create a positive ripple effect in a region's economy. ”
"I am delighted that VinFast has decided to launch their North American manufacturing operations from our state, and we will work to ensure they find the skilled workforce they need to grow and prosper in North Carolina."
The North Carolina project affirms VinFast's commitment to investing and growing its business throughout international markets, particularly in the United States. It will also ensure the company's self-reliance in global manufacturing.
Recently, Vingroup began building a battery plant in Ha Tsing, Vietnam, with an annual capacity of 5GWh. The plant is expected to be completed and fully operational by the end of 2022.
Fore
Stephanie Brinley, chief automotive analyst at IHS Markit, said: "This investment undoubtedly declares their commitment to participating in this market. ”
However, the Vietnamese startup is just one of many electric vehicle suitors. Tesla recently started production in Berlin and operates another factory in Shanghai, as well as factories in California and Texas.
In recent months, both Lucid and Rivian have started production at their own factories, and a number of other nascent electric vehicle makers are hoping to carve out a niche in the U.S. market — though some companies, including Faraday Future, BYTON and Lordstown, are struggling to survive.
Brinley said companies like VinFast face some challenges, starting with "an increasingly crowded market," particularly established automakers like GM, Ford, Toyota and Volkswagen, which are also rolling out their own electric vehicles. So, she says, "it's hard to stand out." ”
This article was originally produced by Automotive Business Review
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