VinFast plans US plant in 2028 as it seeks equity backers
The automaker expects to open another assembly plant in Indonesia’s West Java by October
[SINGAPORE] VinFast Auto expects to open its delayed North Carolina plant in 2028 while the Vietnamese electric vehicle (EV) maker continues to seek equity investors, according to chairwoman Le Thi Thu Thuy.
As part of its shift to Asia amid growing losses, VinFast last month inaugurated the company’s first overseas factory in the Indian state of Tamil Nadu that will have an initial production capacity of 50,000 vehicles a year. It expects to open another assembly plant in Indonesia’s West Java by October.
Thuy confirmed that the company will announce a US$200 million loan from Indian state-owned banks soon, she said. Bloomberg News reported in May that the automaker was seeking a loan from state-owned institutions.
VinFast is “constantly looking for other ways to fund the business”, she said. “So it’s still looking to bring in the equity investor at the price that is acceptable to us.”
As the company expands, it will “continue growing our credit profile”, Thuy said.
VinFast was poised to raise US$1.5 billion by selling certain research and development assets to founder Pham Nhat Vuong. The transaction is expected to close in the second half of this year, VinFast said.
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The billionaire has already pumped more than US$2 billion of his own money into the EV maker and has said that he’s willing to support it until his money runs out.
VinFast posted a net loss of about 20.3 trillion dong (S$995 million) in the second quarter, 15 per cent wider than the first quarter and 8.4 per cent from a year ago, according to an exchange filing.
Vuong said in April that the automaker will prioritise Asia, including India, Indonesia and the Philippines, over North America and Europe, where high logistics costs weigh on margins.
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VinFast, which announced last year it was delaying a North Carolina EV factory until 2028, is “pushing forward” with the plan to open the plant at that time, Thuy said.
Parent company Vingroup is considering expanding its entire business ecosystem, which includes developing mega cities, schools and hospitals, to India, she said. VinFast is committed to manufacturing automobiles and setting up EV infrastructure in the country, Thuy said.
That also includes the launching of taxi company Green & Smart Mobility, or GSM, in the country. The taxi company is owned by Vuong. BLOOMBERG
