VinFast to suspend expansion in western markets, shift to Asia: Vingroup chair
A new VinFast factory will be built in India and one will go into operation in Indonesia later this year.
Vingroup chair Phạm Nhật Vượng on Thursday said the group's electric vehicle subsidiary VinFast will shift its focus from the US and Europe to Asia this year.
VinFast will build a new factory India and open another in Indonesia this year, as its projects in the US are facing challenges and there is rising demand in the domestic market, Vượng told shareholders at Vingroup's shareholders meeting in Hà Nội.
The factory in India will begin construction at the end of June in the state of Tamil Nadu, with an initial planned investment of US$500 million over five years, as part of a total $2 billion investment commitment. It will have a production capacity of 150,000 vehicles per year.
The factory in Indonesia, whose construction started in July 2024, is expected to begin operations in October.
"VinFast will temporarily pause its expansion plans into the US, Canada and Europe due to high logistics costs,” said Vượng.
“The $4 billion factory in North Carolina will also postpone its operational start to 2028, as we wait for clearer market signals."
He added that in the near future, VinFast will focus its resources on the markets of Việt Nam, Indonesia, India and the Philippines.
Reducing VinFast’s presence in western markets is a strategic decision, given limited cash flow and the fact that these markets have not fully embraced emerging electric vehicle manufacturers, he said.
VinFast aims to sell 200,000 electric vehicles in Việt Nam this year, which is nearly double the 97,000 units sold last year, according to Vượng.
If this target is achieved, the company would hold about 40 per cent of the domestic car market and reach the breakeven point for its domestic electric vehicle business, he said.
From its establishment in 2017 to November 2024, VinFast had received about $17 billion in investment capital from its parent company Vingroup, affiliated companies and Phạm Nhật Vượng himself.
