Friday, 27 December 2024
Home Topics Business EV maker VinFast to build second production plant in Vietnam
BusinessElectric Vehicles (EVs)NewsTransport

EV maker VinFast to build second production plant in Vietnam

20
FILE PHOTO: The production line of VinFast's factory is pictured in Hai Phong City, Vietnam, April 22, 2021. Picture taken April 22, 2021. REUTERS/Thanh Hue/File Photo
FILE PHOTO: The production line of VinFast's factory is pictured in Hai Phong City, Vietnam, April 22, 2021. Picture taken April 22, 2021. REUTERS/Thanh Hue/File Photo

HANOI (Reuters) – Vietnamese electric vehicle (EV) manufacturer VinFast on Sunday announced a plan to build its second domestic production plant that will double its output capacity, saying it is needed to meet increased demand for its small and mid-sized models.

VinFast said the new facility is expected to produce 300,000 units annually in its initial phase, the same capacity as its existing plant in Haiphong. The company delivered fewer than 45,000 cars worldwide in the first nine months of 2024.

The new factory in the central Ha Tinh province will primarily produce VF 3 and VF 5 models for both domestic sales and export, with operations set to commence in July next year, the company said in a statement.

“Demand in international markets is growing rapidly, so the construction of an additional electric car factory … will create a solid foundation for an important and explosive development phase ahead for VinFast,” said Nguyen Viet Quang, Vice Chairman and CEO of VinFast’s parent company Vingroup.VinFast, a subsidiary of major Vietnamese conglomerate Vingroup, said last month its third-quarter net loss had narrowed to $550 million, which it said reflected lower material costs and increased production.

The automaker delivered 44,773 cars during the first nine months of this year, just over 55% of its target of 80,000 units for the year. Company officials have said they remain confident of reaching the goal.

The new plant will be located in the same complex as VinFast’s battery plant and will use parts from the company’s existing factory in Haiphong.VinFast has also announced plans for assembly plants in both Indonesia and India, and has delayed the launch of a planned North Carolina facility until 2028.

(Reporting by Phuong Nguyen; Editing by John Mair and Michael Perry)

Related Articles

FILE PHOTO: A staff member cleans a display showing the locations of battery maker CATL's production bases, at the CATL booth during the first China International Supply Chain Expo (CISCE) in Beijing, China November 28, 2023. REUTERS/Florence Lo/File Photo
BusinessElectric Vehicles (EVs)ElectricityFinanceStorage

China’s CATL to seek Hong Kong listing

CATL plans to issue offshore H-shares and apply for a listing on...

FILE PHOTO: Volunteers work to clear spilled oil on the coastline following an incident involving two tankers damaged in a storm in the Kerch Strait, in the settlement of Blagoveshchenskaya near the Black Sea resort of Anapa in the Krasnodar region, Russia December 21, 2024. REUTERS/Sergey Pivovarov/File Photo
ClimateEnvironmentFuelOil

Russia declares federal emergency over Black Sea oil spill

Two oil tankers were hit by a storm on Dec. 15. One...

FILE - A sign is displayed at an electric vehicle charging station, March 8, 2024, in London, Ohio. (AP Photo/Joshua A. Bickel, File)
AnalysisElectric Vehicles (EVs)Transport

Five facts about electric vehicles in 2024

Electric vehicles had another whirlwind year around the globe, driven by buyers...

FILE PHOTO: Cars at BYD's first electric vehicle (EV) factory in Southeast Asia, in Rayong, Thailand, July 4, 2024. REUTERS/Chalinee Thirasupa/File Photo
BusinessElectric Vehicles (EVs)LabourTransport

BYD contractor denies ‘slavery-like conditions’ claims by Brazilian authorities

Brazilian labor authorities had on Wednesday said they found 163 Chinese nationals...

Login into your Account

Please login to like, dislike or bookmark this article.