VinFast, NC’s first car manufacturer, ships initial electric vehicles to US

Brian Gordon
·3 min read
126

With much fanfare, Vietnamese car manufacturer VinFast marked its arrival into the American market Friday when it loaded nearly 1,000 of its electric vehicles onto a charter ship bound for the United States.

By 2024, the nascent automaker plans to manufacture EVs at a massive plant in North Carolina’s Chatham County, but until that plant becomes operational, its cars will be made across the Pacific Ocean in Vietnam.

Patriotic music, dancers, and pyrotechnics accompanied VinFast’s shipment ceremony in the port city of Haiphong as the Southeast Asian country celebrated what Vingroup CEO Nguyen Viet Quang called a “historical milestone for the Vietnamese automotive industry.”

VinFast formed in 2017 as a subsidiary of VinGroup, one of the largest private conglomerates in Vietnam. It has produced some gas-powered cars but is now making an aggressive play for a share of the electric vehicle market.

In late March, North Carolina awarded VinFast a job development investment grant, or JDIG, to build a 7,500-worker assembly plant on 2,150 acres in southeastern Chatham, in the rural community of Moncure. It will be the state’s first automobile manufacturing facility, after neighboring Southern states edged out North Carolina for BMW and Mercedes-Benz plants in the 1990s.

Combined, Chatham County and the state have allotted $1.25 billion in tax and other incentives for the VinFast site, including about $250 million for road and rail improvements in and around the plant. Some local residents stand to lose their homes through eminent domain.

In a statement, the company said American customers will receive their reserved vehicles by the end of the year. VinFast then plans to produce 200,000 electric SUVs each year in Chatham by 2027.

Vietnamese automaker VinFast, a startup auto manufacturer, chose Chatham County for its first North American production facility.
Vietnamese automaker VinFast, a startup auto manufacturer, chose Chatham County for its first North American production facility.

Battery leasing model no longer mandatory

Customers can currently reserve VinFast cars online.

As of late August, the company had 65,000 global reservations according to Craig Westbrook, chief service officer at VinFast US. Westbrook added that the incoming Chatham factory shows VinFast is dedicated to growing “in its international markets in general and the US in particular.”

Still, auto industry experts have noted the difficulty of any new car company breaking into the American market.

VinFast has recently expanded its EV lineup from two to five models, each offering a unique battery leasing model. Instead of having the car battery included with their purchases, customers can pay a monthly battery subscription.

Company officials have explained battery leasing lowers the initial sticker price and removes battery concerns. When the battery’s charging capacity falls below 70% the company has pledged to replace the battery at no charge.

In a shift from past policy, VinFast now allows customers to buy batteries with their vehicles, bypassing the monthly subscriptions. The price of the five-seat VF 8 model starts at $57,000 with the battery included, while the seven-seat VF 9 model with the battery starts at $76,000.

This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work.

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