VinFast, the prominent Vietnamese electric vehicle (EV) manufacturer, has announced plans to construct a second domestic production plant in Vietnam. This strategic move aims to double the company's output capacity to meet the rising demand for its small and mid-sized EV models. The new facility, located in the central Ha Tinh province, is expected to produce 300,000 units annually in its initial phase, matching the capacity of its existing plant in Haiphong.

The new plant will primarily focus on producing the VF 3 and VF 5 models for both domestic sales and export, with operations slated to begin in July next year. This expansion is part of VinFast's broader strategy to capitalize on the rapidly growing international market for electric vehicles. Nguyen Viet Quang, Vice Chairman and CEO of VinFast's parent company Vingroup, emphasized that the new factory will lay a solid foundation for an important and explosive development phase ahead for VinFast.

VinFast, a subsidiary of the major Vietnamese conglomerate Vingroup, reported a narrowed third-quarter net loss of $550 million, attributed to lower material costs and increased production. The automaker delivered 44,773 cars in the first nine months of 2024, achieving just over 55% of its annual target of 80,000 units. Despite this, company officials remain confident in reaching their year-end goals.

The new plant will be part of the same complex as VinFast's battery plant and will utilize parts from the company's existing factory in Haiphong. Additionally, VinFast has announced plans for assembly plants in Indonesia and India, while the launch of a planned facility in North Carolina has been postponed until 2028.

The Ha Tinh plant, with a design capacity of up to 300,000 units per year, can potentially expand to 600,000 units, making it one of the largest in Southeast Asia. The project is expected to create nearly 6,000 jobs initially, with the potential to increase to 15,000. VinFast has become the top-selling automotive brand in Vietnam, delivering over 11,000 EVs in October alone, marking a 21% increase from September.

The Vung Ang Economic Zone, where the new plant is located, offers strategic advantages such as a deep-water port and connectivity to major economic corridors, making it an attractive investment destination. VinFast and its partners plan to develop more supporting factories to enhance the supply chain and increase the localization rate, further bolstering Vietnam's supporting industries.

VinFast's expansion reflects its commitment to becoming a leading player in the global EV market, leveraging Vietnam's strategic location and growing industrial capabilities to meet the increasing demand for sustainable transportation solutions.