Electric Vehicles Bring Former Enemies Together as Partners
This August, VinFast Auto Ltd., a Vietnamese private automotive company, broke ground on the first electric vehicle manufacturing facility in the U.S. state of North Carolina, a US$4 billion project. Expected to create thousands of jobs, it is the largest economic development announcement in the state’s history.
Fifty-eight years ago, in August 1965, U.S. Marines and Viet Cong soldiers met in the first major battle of a war that would last for 10 more years. The costly conflict pitted the communist government of North Vietnam against South Vietnam and its ally, the United States.
America’s leaders reasoned that because the communists in Vietnam were supported and guided by the Soviet Union and China, the war was inseparable from the nation’s highest priority – the Cold War struggle to contain communism around the globe. Before the end in 1975, the Vietnam War had cost an estimated 1.35 million lives on both sides, half of them civilians.
Things have changed enormously in 58 years; the former enemies have become business partners and friends.
This August, VinFast Auto Ltd., a Vietnamese-founded, Singapore-based private automotive company, broke ground on the first electric vehicle manufacturing facility in the U.S. state of North Carolina, a US$4 billion project.
Established in 2017 in Hải Phòng, the main port of northern Vietnam near the capital Hanoi, VinFast is a member of the conglomerate Vingroup, one of the largest private organizations in Vietnam.
Last year, VinFast moved its legal and financial headquarters to Singapore in advance of a potential initial public offering in the United States through a Singapore-based holding company. VinFast has additional facilities in Canada, Germany, France and the Netherlands.
Just last week, Clayco, a Chicago-based construction firm, broke ground on Phase One of VinFast’s $4 billion EV manufacturing campus in North Carolina close to the state capital, Raleigh.
“I am thrilled that Clayco is breaking ground on the nation’s first VinFast electric vehicle manufacturing campus,” said Anthony Johnson, president of Clayco’s Industrial Business Unit. “As one of the largest builders of electric vehicle-related manufacturing projects across the nation, I can say without hesitation that this is a transformative project for the Raleigh-Durham economy and a major win for American manufacturing. We are both honored and humbled to be a part of such an impactful project.”
VinFast Feels Financial Impact of the Switch to EVs
This will be North Carolina’s first car manufacturing plant, and it is the largest economic development announcement in the state’s history.
“North Carolina is quickly becoming the center of our country’s emerging, clean energy economy,” said 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.”
– Roy Cooper, Governor North Carolina
Last summer the State of North Carolina awarded a US$1.2 billion incentive package to VinFast to build its first facility on American soil. The project received financial support from the City of Sanford, Chatham County, and the Golden Leaf Foundation, a North Carolina grant-making organization, according to the EV company.
Phase One will include facilities for manufacturing 150,000 electric cars annually. VinFast expects that the factory will produce three EV models – the VF 7, VF 8, and VF 9.
The VinFast VF 8 has an EPA-rated range of 264 miles for the Eco trim and 243 miles for the Plus trim per full charge. All VinFast VF 8 models have a top speed of 200 km/h (124 mph).
The VF 8 Eco and Plus model pricing will start at $46,000 and $51,800 respectively, batteries included, and have both lease and loan options. VF 9 electric SUVs will be rolled out in the coming months.
VinFast moved quickly to end internal combustion vehicle production and go electric after the company showed its VF 8 and VF 9 electric SUVs at the Los Angeles Auto Show in 2021.
VinFast shipped its first electric vehicles, nearly a thousand VF 8 models, to the United States in late November 2022.
Vingroup CEO Nguyen Viet Quang said at the time, “The export of the first 999 VF 8s is a significant event for VinFast and Vingroup and a proud historical milestone for the Vietnamese automotive industry. It affirms that Vietnam has successfully produced high-quality standards electric vehicles that are ready to compete in the international market.”
“WE HOPE THAT, WHEN VINFAST’S SMART ELECTRIC VEHICLES ROLL OUT ON THE STREETS AROUND THE WORLD, IT WILL HELP PROMOTE THE IMAGE OF A NEW DYNAMIC AND PROGRESSIVE VIETNAM TO THE GLOBAL AUDIENCE.”
– Nguyen Viet Quang, Chief Executive Officer Vingroup
But a recall of all of VinFast’s 999 VF8 2023 vehicles sent to the United States was issued by the U.S. Department of Transportation in July 2023 due to safety concerns. The National Highway Traffic Safety Administration issued the recall due to a multifunction head-unit display problem caused by a software error that may cause it to go blank while driving, increasing the chances of a crash.
The recall has added to VinFast’s financial woes. According to a December 2022 filing with the U.S. Securities and Exchange Commission, VinFast lost $1.3 billion in 2021 and close to $1.5 billion in the first three quarters of 2022.
Looking for some financial assistance, VinFast announced this year that it would merge with Black Spade Acquisition Company, allowing it to go public through a stock offering in the United States.
VinFast Sees a Great Future for Its EVs in the USA
The new VinFast campus, constructed in partnership with architect Albert Kahn Associates, is projected to create between 1,500 and 2,000 jobs. The factory is expected to start production in 2025.
The primary manufacturing buildings will host vehicle production and assembly. Plans call for support buildings to include a central energy plant, an office and training facility, fire prevention facilities, and a finished vehicle area.
The supplier base for components and materials will be concentrated in the United States and Vietnam, according to VinFast.
The VinFast factory is being constructed in central North Carolina, at the Triangle Innovation Point megasite in a small town called Moncure. The B. Everett Jordan Lake Dam is located just north of Moncure, and the area hosts much of Chatham County’s heavy industry, including Shearon Harris Nuclear Power Plant eight miles (13 km) to the east.
In addition to its new factory, VinFast is accelerating its business and brand recognition in the United States by expanding its retail store and service center system, organizing local test drives and displaying products events throughout California, a state well known for its interest in electric vehicles.
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