VinFast, a Vietnamese automaker, told CNBC that work will start on its electric vehicle manufacturing in North Carolina on Friday morning local time. “We’ve just finished obtaining the construction permission. VinFast CEO Le Thi Thu Thuy told CNBC, “We are really thrilled that [it] is going to be a huge milestone for VinFast history in the U.S. and we will start groundbreaking for the facility here in the U.S.
A Sizable Market
According to VinFast, the 1,800-acre plant can initially produce up to 150,000 vehicles annually. Rather of opening as planned in 2024, the factory is now anticipated to do so in 2025. With EV infrastructure and legislation requiring EVs in large cities by 2035, “we see a lot of potential in the U.S. market.” Therefore, I believe there is a sizable market, and everyone is switching from internal combustion engines to electric vehicles, Le said on Friday’s episode of “Squawk Box Asia” of CNBC.
The state of North Carolina has provided VinFast with incentives totaling $1.2 billion for the project. Le recognised that the American market is becoming more competitive. We believe there is still plenty of room for new players. As long as we offer high-quality items, I believe American consumers are receptive to new players, said Le. VinFast will compete against Tesla and BYD as well as major automakers who are increasingly concentrating on hybrids and EVs when it enters the U.S. EV market.
But more importantly, the electric vehicles created at VinFast’s new plant may be eligible for tax credits worth up to $7,500 in the United States. Because they are made in Vietnam rather than in the United States, VinFast cars are currently ineligible.
High-end Goods at Competitive Prices
Additionally, compared to the equivalent Tesla vehicle X, the business is pricing its VF 9 vehicle far lower. According to Motor Trend, VinFast’s VF 9 should cost as much as $85,000 for the Eco model. About $100,000 is the price of a Tesla Model X. “From the outset, our strategy has been to offer high-end goods at competitive prices, together with first-rate customer support. So we stick to that plan,” Le added.
We are the only company in the industry with a variety of vehicles that ranges from extremely small city cars priced at $12,000 to full-size three-row SUVs like the VF 9, which will be released in the United States later this year. Obstacles in VinFast’s U.S. expansion include delayed deliveries to its first clients because of a software problem in May. In February, the business also cut back on staff in the United States.