VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, commenced operations at its second domestic production facility on Sunday, 29 June, marking a strategic step towards increasing output of its compact urban EVs amid challenges in its international growth trajectory.
The newly inaugurated factory, situated in Ha Tinh province in central Vietnam, boasts an initial annual capacity of 200,000 units and covers 36 hectares, according to a company statement. This expansion complements the manufacturer’s flagship facility in Haiphong, which is projected to achieve a production capacity of 950,000 units by 2026.
Backed by Vingroup, Vietnam’s largest conglomerate, VinFast has laid out an ambitious roadmap to establish manufacturing footprints in key international markets including the United States, India, and Indonesia. However, its global expansion efforts have encountered obstacles, ranging from subdued demand to intense competition across the EV sector.
The company last year confirmed a delay in the commencement of operations at its planned US-based factory, pushing the launch to 2028. Meanwhile, its assembly plant in India is scheduled to become operational in July 2025.
“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, Chief Executive Officer of Vingroup.
Despite its global ambitions, VinFast continues to concentrate on domestic performance. The EV maker has set a target of delivering 200,000 vehicles in 2025, having already sold approximately 56,000 units in the first five months of the year, largely within Vietnam.
Financially, the company reported a net loss of US$712.4 million for the first quarter of 2025. While this figure reflects a reduction from the US$1.3 billion loss posted in the previous quarter, it represents a 20 per cent increase year-on-year. Nonetheless, revenue surged by 150 per cent during the same period, reaching US$656.5 million.
-Reuters
