Vietnamese company VinFast is setting up a factory in the United States
Vietnamese car manufacturer VinFast announced on Wednesday, July 19th, its intention to commence the construction of a $4 billion electric vehicle factory in North Carolina in the coming week. This move is part of VinFast’s strategic efforts to expand its presence in the United States market. VinFast, a subsidiary of Vingroup (VIC.HM), Vietnam’s largest conglomerate, initiated operations in 2019 and had previously unveiled its plans for a factory in the U.S. last year. Initially slated to begin production in 2024, the company has adjusted its timeline and now aims to commence production in 2025.
Amidst a price competition between established market leaders such as Tesla and China’s BYD, who are currently engaged in a price war, VinFast is among several electric vehicle (EV) startups striving to establish themselves and sustain their position in the market. This is occurring at a time when the growth in demand for EVs seems to be decelerating in significant markets, mainly because the price of electricity is high and China is trying to take advantage of its rare earths.
