EV maker VinFast to construct second manufacturing plant in Vietnam

HANOI (Reuters) – Vietnamese electrical car (EV) producer VinFast (NASDAQ:VFS) on Sunday introduced a plan to construct its second home manufacturing plant that can double its output capability, saying it’s wanted to fulfill elevated demand for its small and mid-sized fashions.

VinFast stated the brand new facility is predicted to provide 300,000 items yearly in its preliminary section, the identical capability as its current plant in Haiphong. The corporate delivered fewer than 45,000 vehicles worldwide within the first 9 months of 2024.

The brand new manufacturing unit within the central Ha Tinh province will primarily produce VF (NYSE:VFC) 3 and VF 5 fashions for each home gross sales and export, with operations set to start in July subsequent yr, the corporate stated in a press release.

“Demand in worldwide markets is rising quickly, so the development of an extra electrical automotive manufacturing unit … will create a strong basis for an vital and explosive growth section forward for VinFast,” stated Nguyen Viet Quang, Vice Chairman and CEO of VinFast’s mum or dad firm Vingroup.VinFast, a subsidiary of main Vietnamese conglomerate Vingroup, stated final month its third-quarter internet loss had narrowed to $550 million, which it stated mirrored decrease materials prices and elevated manufacturing.

The automaker delivered 44,773 vehicles in the course of the first 9 months of this yr, simply over 55% of its goal of 80,000 items for the yr. Firm officers have stated they continue to be assured of reaching the aim.

The brand new plant can be positioned in the identical complicated as VinFast’s battery plant and can use elements from the corporate’s current manufacturing unit in Haiphong.VinFast has additionally introduced plans for meeting crops in each Indonesia and India, and has delayed the launch of a deliberate North Carolina facility till 2028.