VinFast, the Vietnamese electric vehicle (EV) manufacturer, has revealed plans to establish its second production facility in Vietnam. The new plant, aimed at supporting growing demand for its small and mid-sized models, will significantly increase the company’s production capacity.
Increased Production Capacity to Meet Demand
The new facility, located in Ha Tinh province, will initially have a production capacity of 300,000 vehicles annually, matching the output of VinFast’s existing plant in Haiphong. The company delivered fewer than 45,000 vehicles worldwide in the first nine months of 2024, which highlights the need for this expansion to meet both domestic and international demand.
The factory will focus on manufacturing the VF 3 and VF 5 models, with production slated to begin in July 2025. These vehicles will be available for both local sales and export, helping to strengthen VinFast’s position in global markets.
Solidifying Growth for VinFast’s Future
Nguyen Viet Quang, Vice Chairman and CEO of VinFast’s parent company, Vingroup, emphasized the strategic importance of this new plant: “Demand in international markets is growing rapidly, so the construction of an additional electric car factory will create a solid foundation for an important and explosive development phase ahead for VinFast.”
VinFast is also working on plans for assembly plants in Indonesia and India, though its North Carolina facility’s opening has been postponed to 2028. This new plant in Ha Tinh will complement VinFast’s battery production plant and will rely on parts from its Haiphong facility, streamlining its production processes.
Despite challenges, VinFast continues to show confidence, having reduced its third-quarter net loss to $550 million, supported by lower material costs and a rise in production.
