VinFast receives $1.2 billion incentive package to manufacture EVs in North Carolina

VinFast, a Vietnam-headquartered EV maker and member of Vingroup, announced it received a $1.2 billion incentive package from the state of North Carolina to support its plans to build a manufacturing plant at Triangle Innovation Point in Chatham County.

VinFast currently builds the VF8, a mid-size electric SUV, and the VF9, a full-size electric SUV.

The incentive package includes a job development investment grant of $316 million over 32 years, state appropriation of $450 million, to cover site preparations, road improvements, and additional water and sewer infrastructure, community college training worth $38 million, a Golden Leaf Foundation grant of $50 million, and $400 million in incentives from Chatham County. Additionally, VinFast said it has received hundreds of millions of incentives from commercial organizations in the State of North Carolina, which is excluded from the government budget figure.

The funds join an investment of about $2 billion in the first phase of VinFast’s US manufacturing plans. The plant is designed to produce 150,000 electric vehicles each year.

The facility will cover 2,000 acres, and will be divided into two major production lines, one for electric car and bus production, and the other for ancillary industries for suppliers. The facility is expected to bring thousands of jobs to North Carolina once it is completed.

“North Carolina’s partnership with VinFast to bring good, clean energy jobs to North Carolina took an important step forward today with the signing of the budget,” said Roy Cooper, governor of North Carolina. “Electric vehicles, like the ones VinFast will produce in Chatham County, are a critical component of our strategy to reduce greenhouse gas emissions and build North Carolina into a hub for the clean energy economy.”

Phase one of the project is slated for the second half of 2022, and production is planned to commence in July 2024. The facility will be the first car factory in North Carolina’s history, and the largest economic development in the state to date.

“VinFast applauds North Carolina for their efforts and determination in advancing the state’s clean energy economy and carbon mitigation goals,” said Van Anh Nguyen, CEO of VinFast Manufacturing US. “This investment by the State of North Carolina is the starting point for a future marked by innovation, job creation, and economic growth. Today exemplifies how government and industry can come together to pursue a brighter future.”