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HANOI: Vietnamese electric vehicle (EV) maker VinFast has postponed the start of production at its planned $4 billion plant in North Carolina to 2028 and cut its delivery forecast for this year by 20,000 vehicles due to uncertainty in the global EV market.
VinFast was founded in 2017 by Vietnam’s richest man, Pham Nhat Vuong, and plans to start producing all-electric vehicles in 2022. The company said it would deliver 80,000 vehicles this year, down from an initial plan of 100,000.
The Vietnamese electric car maker’s sales in the second quarter rose 24% to about 12,000 vehicles compared with the previous three months. Overall, VinFast sold a total of 21,747 vehicles in the first half of 2024, up 92% from the same period last year but about a quarter of its forecast for the new year.
“While second quarter delivery results are encouraging, ongoing economic headwinds and uncertainties in the varying macroeconomic and global EV landscapes necessitate a more cautious outlook for the company’s outlook for the remainder of the year,” VinFast said in a statement on Saturday.
The electric car maker still expects strong sales growth in the second half of the year, driven by a diversified product range and expansion in key regions, including new and existing markets in Asia.
VinFast said in a statement that it would delay the start of production at its North Carolina plant from the current 2025 to 2028. Reuters reported in May that the plant’s start of production might be delayed, citing a person familiar with the matter.
VinFast announced in 2022 that it would build an electric vehicle and battery factory in the United States with an annual production capacity of 150,000 vehicles, hoping to take advantage of the Biden administration’s efforts to approve subsidies for American-made electric vehicles.
However, falling demand for electric vehicles due to high borrowing costs and consumers shifting to cheaper gasoline-electric hybrids has forced many automakers to reassess plans for new factories and models.
“This decision will allow the company to optimize capital allocation and more effectively manage short-term expenses, focusing more resources on supporting near-term growth objectives and strengthening existing businesses,” VinFast said.
“This realignment will not change VinFast’s fundamental growth strategy and key operational objectives.”
VinFast is not yet profitable and posted a net loss of $618 million in the first quarter. Revenue for the quarter nearly tripled from the same period last year, but fell 31% from the previous three months.
The company will report second-quarter results on August 15.
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