HANOI (Reuters) - Vietnamese electric vehicle (EV) manufacturer VinFast (NASDAQ:VFS) on Sunday announced a plan to build its second domestic production plant that will double its output capacity, saying it is needed to meet increased demand for its small and mid-sized models.
VinFast said the new facility is expected to produce 300,000 units annually in its initial phase, the same capacity as its existing plant in Haiphong. The company delivered fewer than 45,000 cars worldwide in the first nine months of 2024.
The new factory in the central Ha Tinh province will primarily produce VF (NYSE:VFC) 3 and VF 5 models for both domestic sales and export, with operations set to commence in July next year, the company said in a statement.
"Demand in international markets is growing rapidly, so the construction of an additional electric car factory ... will create a solid foundation for an important and explosive development phase ahead for VinFast," said Nguyen Viet Quang, Vice Chairman and CEO of VinFast's parent company Vingroup.VinFast, a subsidiary of major Vietnamese conglomerate Vingroup, said last month its third-quarter net loss had narrowed to $550 million, which it said reflected lower material costs and increased production.
The automaker delivered 44,773 cars during the first nine months of this year, just over 55% of its target of 80,000 units for the year. Company officials have said they remain confident of reaching the goal.
The new plant will be located in the same complex as VinFast's battery plant and will use parts from the company's existing factory in Haiphong.VinFast has also announced plans for assembly plants in both Indonesia and India, and has delayed the launch of a planned North Carolina facility until 2028.