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Vietnam-based electric vehicle (EV) startup VinFast has announced plans to build additional manufacturing facilities in the country, which is expected to double the company’s output and help meet growing demand.
On Sunday, VinFast said it plans to build its second factory in Vietnam, which it says will produce 300,000 vehicles a year, or the same production level as its plant in Haiphong (via Reuters). The new factory will be located in the central province of Khatin and will produce the popular VF3 city car and the VF5 crossover, and VinFast expects to begin operating the facility next July, the company said.
“Demand in international markets is growing rapidly, so the construction of an additional electric vehicle factory … will create a solid foundation for an important and turbulent phase of VinFast’s development,” said Vingroup CEO and Chairman Nguyen Viet Quang.
VinFast’s market cap hits $191 billion, comparable to Tesla’s 2020 valuation
READ MORE ON VINFAST: VinFast offers customers generous payouts for service issues and delays
In the first nine months of 2024 VinFast less than 45,000 cars were sold worldwide, although it received a significant number of pre-orders for the VF3 in Vietnam, with 27,649 pre-orders received within 66 hours. The company has also used a unique strategy to sell its electric vehicles on e-commerce platforms, with more than half of its pre-orders being taken online.
last month, VinFast secures $3.4 billion funding round from parent company Vingroup and is expected to financially support the electric car maker and help it reach profitability by 2026. So far, VinFast has managed to get about $17 billion in funding from its parent company and from VinFast founder Pham Nhat Vuong, who has invested approximately VND 50 trillion (~1.97 billion) of his own money.
The automaker also has dealer and after-sales service agreements in the Middle East and Europe, and is looking to set up a manufacturing facility in Thoothukudi, India, with a possible production capacity of 150,000 electric vehicles per year. VinFast also began deliveries of the VF8 in the US in 2022, although the vehicle is currently under investigation by the National Highway Traffic Safety Administration (NHTSA). following an accident involving a vehicle that resulted in multiple deaths earlier this year.
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