Biden Lauds VinFast’s $2 Billion Investment In North Carolina As US Builds Clean Energy Economy

Vietnamese car manufacturer VinFast is building a multibillion-dollar manufacturing facility in North Carolina. The company intends to invest up to $2 billion in the project’s phase 1, which will further push VinFast’s standing in the competitive market for electric vehicles.

VinFast’s factory will create a major manufacturing center in Chatham County’s Triangle Innovation Point megasite, covering an area of 800-hectares, with three main areas: Electric cars and buses production and assembly, EV batteries production, and ancillary industries for suppliers.

US President Joe Biden said VinFast’s investment will create more than 7,000 jobs and hundreds of thousands of electric vehicles and batteries, supporting the economic strategy of “supercharging the industries of the future” he has been promoting since taking office in January 2021.

“The new investment builds on recent announcements from companies like GM, Ford, and Siemens to invest in America again and create jobs,” President Biden said in an official statement issued by the White House. “Our efforts to build a clean energy economy are driving companies to make more in America, rebuild our supply chains here at home, and ultimately bring down costs for the American people.”

Biden signed the Bipartisan Infrastructure Law to build out EV charging infrastructure and brought together the United Autoworkers and automakers at the White House to sign an executive order to get 50% electric vehicle sales share in 2030.

The construction of the factory will start this year, once all permits and paperwork are completed. Production of EVs and batteries is expected to start in July 2024. According to the memorandum of understanding signed by VinFast and the government of North Carolina this week, the company will be allowed to invest in future phases of the factory. For phase 1, VinFast can produce about 150,000 vehicles per year, including VinFast VF9, a 7-passenger all-electric Sport Utility Vehicle (SUV) and the VinFast VF 8, a 5-passenger, all-electric mid-size SUV.

“North Carolina’s strong commitments in building a clean energy economy, fighting climate change, and reducing greenhouse gas emissions in transportation make it an ideal location for VinFast to develop its premium, smart, and environmentally friendly EVs,” said Le Thi Thu Thuy, Vingroup Vice-Chair and VinFast Global CEO.

With the ideal location of the facility, VinFast can proactively manage its supply chain, maintain stabilized prices, and shorten product supply time, added Le. This will help the electric vehicles be more accessible to the market, contributing to the realization of local environmental improvement goals in North Carolina.

“North Carolina is quickly becoming the center of our country’s emerging, clean energy economy,” said North Carolina Governor Roy Cooper. “VinFast’s transformative project will bring many good jobs to our state, along with a healthier environment as more electric vehicles take to the road to help us reduce greenhouse gas emissions.”

Established in 2017, the carmaker is a member of Vingroup – one of the leading private conglomerates in Vietnam and owned by Vietnamese billionaire Pham Nhat Vuong. With its focus on technology and industry, Vingroup has heavily invested in its automotive manufacturing complex in Vietnam and beyond. VinFast is the only premium Vietnamese car producer and has completed the construction, installation of its factory in the north-eastern Vietnamese coastal city of Haiphong and developed its first three car models in just 21 months — a record in the global auto industry.

VinFast has had big goals set from the start, from being Vietnam’s first local car brand to leading the EV transition in the country and in the region. It developed its first three electric smart cars last year. It has also already rolled out e-scooters, electric buses and cars, and charging station systems in Vietnam.

The Vietnamese company officially debuted in the American market in November last year, appearing at the LA Auto Show alongside popular brands Ford, Porsche, and Subaru.

Aside from the US, VinFast has established global operations in Canada, Germany, France, and the Netherlands, and is expected to expand further in the coming years.