By Phuong Nguyen
HANOI (Reuters) – Vietnamese electric vehicle (EV) maker VinFast (NASDAQ:) is delaying the launch of its planned $4 billion factory in North Carolina until 2028 and cutting its delivery forecast for this year by 20,000 units amid of uncertainties in the global EV market.
VinFast, founded by Vietnam’s richest man Pham Nhat Vuong in 2017 and which started making all-electric vehicles in 2022, said it will now deliver 80,000 vehicles this year, up from 100,000 initially planned.
Sales at the Vietnamese EV maker rose 24% to around 12,000 vehicles in the second quarter, compared to the previous three-month period. In total, VinFast sold 21,747 units in the first half of 2024, up 92% from the same period last year, but about a quarter of the new year forecast.
“While the second quarter results were encouraging, continued economic headwinds and uncertainties in several macro economies and (the) global EV landscape necessitate a more cautious outlook for the remainder of the year,” VinFast said in a statement on Saturday.
The EV maker still expects strong sales growth in the second half of the year, driven by diverse product offerings and expansion in key regions, including new markets in Asia and existing markets.
In its statement, VinFast said it would delay the launch of its planned North Carolina factory until 2028 from the current plan of 2025. Reuters had reported a possible delay in May, citing a person briefed on the matter.
VinFast had 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, in a bid to capitalize on the Biden administration’s efforts to approve subsidies for American-made electric vehicles.
However, demand for electric cars has declined due to high financing costs and as buyers turn to cheaper gasoline-electric hybrids, forcing many automakers to reassess their plans for new plants and models.
“This decision will enable the company to optimize its capital allocation and manage its short-term expenses more effectively, devoting more resources to supporting near-term growth objectives and strengthening existing businesses,” VinFast said.
“The adjustment does not change VinFast’s fundamental growth strategy and key operational objectives.”
VinFast, which has yet to turn a profit, posted a net loss of $618 million in the first quarter. Sales for the period almost tripled from a year earlier, but fell 31% from the previous three months.
The company will report second-quarter results on August 15.
