VinFast, a Vietnamese electric car manufacturer, started production at its second local plant with the goal of increasing manufacturing of reasonably priced micro urban models as its plans for international development are delayed.
The business said in a statement that the new facility, which is 36 hectares (90 acres) in size and is situated in the central province of Ha Tinh, has an initial annual capacity of 200,000 units.
In contrast, VinFast’s flagship plant in northern Haiphong is expected to produce up to 950,000 units by the end of the following year.
With the support of Vingroup, the biggest conglomerate in Vietnam, VinFast has set lofty targets to set up production facilities in foreign markets including Indonesia, India, and the US. Nevertheless, it has encountered challenges in its worldwide growth, such as reduced demand and fierce rivalry.
Last year, the business declared that it will postpone operations at its U.S. plant until 2028. Next month is anticipated to see the opening of its assembly factory in India.
“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,” stated Nguyen Viet Quang, chief executive officer of the EV manufacturer, which sold over 56,000 cars in the first five months, mostly in its home market, has set a delivery goal of 200,000 cars for 2025.
It posted a first-quarter net loss of $712.4 million, which was 20% more than a year earlier but less than the $1.3 billion loss from the prior quarter. Over the same time period, revenue increased by 150% to $656.5 million.