VinFast opens second domestic EV factory amid global expansion
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VinFast opens second domestic EV factory amid global expansion
Vietnam’s electric vehicle manufacturer VinFast began production on Sunday at its second domestic factory. The new facility, located in the central province of Ha Tinh, has an initial annual capacity of 200,000 units. VinFast, backed by Vietnam’s largest conglomerate Vingroup, has set ambitious goals to establish production plants in international markets. However, it has faced hurdles in its global expansion, including weaker demand and stiff competition.
HANOI, June 29 (Reuters) – Vietnamese electric vehicle manufacturer VinFast began production on Sunday at its second domestic factory, aiming to ramp up output of affordable mini urban models as its global expansion plans face delays.
The new facility, located in the central province of Ha Tinh, has an initial annual capacity of 200,000 units and spans 36 hectares (90 acres), the company said in a statement.
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By comparison, VinFast’s flagship factory in northern Haiphong is designed to reach a capacity of 950,000 units by next year.
VinFast, backed by Vietnam’s largest conglomerate Vingroup (VIC.HM) , opens new tab , has set ambitious goals to establish production plants in international markets, including the United States, India, and Indonesia. However, it has faced hurdles in its global expansion, including weaker demand and stiff competition.
The company announced last year that operations at its U.S. factory would be delayed until 2028. Its India assembly plant is expected to become operational next month.
“Once operational, the VinFast Ha Tinh factory will contribute to VinFast’s goal of producing 1 million vehicles per year to meet the increasing demand of domestic and foreign markets,” said Nguyen Viet Quang, Vingroup’s CEO.
The EV maker has set a delivery target of 200,000 cars for 2025, having sold approximately 56,000 units in the first five months, primarily in its domestic market.
It reported a net loss of $712.4 million for the first quarter, less than the $1.3 billion loss in the previous quarter but 20% more than a year earlier. Revenue jumped 150% to $656.5 million over the same period.
Reporting by Phuong Nguyen; Editing by Kate Mayberry
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Vietnam’s VinFast opens second domestic EV factory amid global expansion
Vietnamese electric vehicle manufacturer VinFast began production on Sunday at its second domestic factory. It aims to ramp up output of affordable mini urban models as its global expansion plans face delays. The new facility, located in the central province of Ha Tinh, has an initial annual capacity of 200,000 units and spans 36 hectares (90 acres)
The new facility, located in the central province of Ha Tinh, has an initial annual capacity of 200,000 units and spans 36 hectares (90 acres), the company said in a statement.
By comparison, VinFast’s flagship factory in northern Haiphong is designed to reach a capacity of 950,000 units by next year.
VinFast, backed by Vietnam’s largest conglomerate Vingroup, has set ambitious goals to establish production plants in international markets, including the United States, India, and Indonesia. However, it has faced hurdles in its global expansion, including weaker demand and stiff competition.
The company announced last year that operations at its US factory would be delayed until 2028. Its India assembly plant is expected to become operational next month.
“Once operational, the VinFast Ha Tinh factory will contribute to VinFast’s goal of producing 1 million vehicles per year to meet the increasing demand of domestic and foreign markets,” said Nguyen Viet Quang, Vingroup’s CEO.
The EV maker has set a delivery target of 200,000 cars for 2025, having sold approximately 56,000 units in the first five months, primarily in its domestic market.
It reported a net loss of $712.4 million for the first quarter, less than the $1.3 billion loss in the previous quarter but 20 per cent more than a year earlier. Revenue jumped 150 per cent to $656.5 million over the same period.
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Published on June 29, 2025
VinFast Powers Ahead: New Factory Fuels Ambitious EV Goals
Vietnam’s electric vehicle frontrunner, VinFast, inaugurated its second domestic factory on Sunday. The facility boasts an initial capacity of 200,000 units annually on a sprawling 36-hectare site.
Contrasting its Haiphong flagship plant aiming for 950,000 units by next year, VinFast aspires to establish international production bases, including in the United States, India, and Indonesia. However, it confronts delayed operations and intensified competition overseas.
CEO Nguyen Viet Quang asserted that the Ha Tinh plant will drive towards producing one million vehicles yearly, addressing surging domestic and foreign market demands. Despite a notable quarterly financial loss, VinFast demonstrated significant revenue growth, reflecting resilient consumer appetite for EVs.