Vietnamese electric vehicle (EV) manufacturer VinFast has announced plans to construct its second domestic production facility, aimed at doubling its output capacity to meet rising demand for its small and mid-sized electric vehicle models. This strategic move reflects the company’s commitment to expanding its footprint in the rapidly evolving EV market.

The new plant, located in Ha Tinh province, is projected to produce 300,000 units annually in its initial phase, matching the capacity of VinFast’s existing facility in Haiphong. The construction of this facility is expected to commence in the coming months, with operations set to begin in July 2025.

VinFast’s decision to expand its production capabilities comes in response to increasing consumer interest in electric vehicles, particularly in international markets. The new factory will focus on manufacturing the VF 3 and VF 5 models, which are designed for both domestic sales and export. These models are part of VinFast’s broader strategy to offer a diverse range of electric vehicles that cater to various consumer preferences.

VinFast has experienced significant growth since its inception, but recent delivery figures highlight the need for enhanced production capacity. The company delivered fewer than 45,000 cars worldwide during the first nine months of 2024, indicating a gap between production capabilities and market demand.

In a statement regarding the new facility, Nguyen Viet Quang, Vice Chairman and CEO of VinFast’s parent company Vingroup, noted, “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.”

VinFast recently reported a narrowing of its net loss to $550 million for the third quarter of 2024. This improvement is attributed to lower material costs and increased production efficiency. The company is actively working to optimize its operations and reduce expenses, which is critical as it aims to become a competitive player in the global EV market.

VinFast’s expansion into Ha Tinh is part of a larger strategy to solidify its position in the electric vehicle sector. The company is focused on innovation and sustainability, aligning with global trends towards greener transportation solutions. As VinFast continues to scale its operations, it aims to enhance its product offerings and improve accessibility to electric vehicles for consumers.

With the establishment of the new production plant, VinFast is poised to play a significant role in the future of electric mobility, contributing to both the domestic economy and the global transition to sustainable transportation.

Follow us on Linkedin:Battery News