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Vietnamese electric vehicle maker VinFast is moving forward once again with its long-delayed U.S. manufacturing ambitions, announcing plans to restart construction on its North Carolina factory later this year, with operations now targeted for 2028.
The project, located in Chatham County, had been paused in 2024 as the company reassessed its global expansion strategy and market conditions. The restart comes at a time when electric vehicle demand in North America is expected to soften, with forecasts from BloombergNEF predicting a 16% drop in EV sales this year compared to 2025.
While construction is set to resume, the project’s scope has been significantly reduced from its original vision.
VinFast has indicated that the factory will employ approximately 1,400 workers—far below the initially projected 7,500 jobs. This reduction could jeopardize up to $315 million in incentives offered by state and local governments over more than three decades.
The company also faces financial obligations tied to performance benchmarks. Under a 2022 development agreement, it may need to repay as much as $125 million in site preparation costs if it fails to meet minimum job creation thresholds. Additionally, the state retains the right to repurchase portions of the 1,765-acre site if hiring and construction milestones are not achieved.
However, protections are in place for the developer. If VinFast invests at least $500 million into the primary development tract, certain repurchase options tied to early job targets cannot be exercised.
Despite the changes, VinFast emphasized its commitment to moving forward with the project while maintaining flexibility.
“At this stage, we are not in a position to comment on figures referenced in this article,” the company said. “We remain focused on executing the project responsibly and in alignment with our agreements, and will provide updates as appropriate.”
The automaker added that construction-related efforts are already underway again.
“VinFast has recently resumed development activities,” the company said. “As with any large-scale, multiphase industrial development, we are continuously reviewing the project’s scope and implementation timeline to align with current market conditions and our global manufacturing strategy.”
The restart comes as VinFast continues to face mounting financial challenges tied to its rapid global expansion.
The company reported a fourth-quarter net loss of 35.2 trillion dong (approximately $1.3 billion), marking a 15% increase year over year. Costs of sales surged 87% during the same period, reflecting rising production and operational expenses.
For the full year 2025, VinFast posted a net loss of 97.25 trillion dong, up 25.7% compared to the previous year, despite more than doubling revenue to 90.4 trillion dong.
At the same time, vehicle deliveries continue to grow. The company delivered 86,557 cars in the fourth quarter alone and nearly 197,000 vehicles for the year, signaling strong output despite financial headwinds.
VinFast leadership remains optimistic about reaching profitability in the coming years.
As it navigates uncertainties in North America, VinFast is increasingly focusing on key Asian markets, including Vietnam, Indonesia, India and Philippines.
The company has already launched manufacturing operations in India and Indonesia, positioning itself to capture demand in rapidly growing EV markets.
This shift reflects a broader recalibration of its global footprint, balancing expansion ambitions with cost control and regional demand trends.
The North Carolina facility remains a cornerstone of VinFast’s long-term U.S. strategy, but its revised scale highlights the challenges facing EV manufacturers in a volatile market environment.
Rising costs, uncertain demand and stricter financial scrutiny are forcing companies to rethink timelines and investment levels. For VinFast, the success of its U.S. factory will depend not only on construction progress, but also on its ability to stabilize finances and adapt to evolving market dynamics.
If completed as planned, the plant could still play a key role in the company’s global manufacturing network—albeit on a more measured scale than originally envisioned.
Originally reported by Nguyen Kieu Giang | Bloomberg News in TT News.
