Vietnam's VinFast Loses $400 Million in US EV Plant Incentives

Vietnam's electric vehicle (EV) maker VinFast has lost $400 million in economic incentives originally promised for its planned EV plant construction project in Chatham County, North Carolina, USA. The Chatham County Board of Commissioners voted on July 22 to terminate the economic development agreement with VinFast, dealing another blow to the company's already troubled US expansion plans. According to The Carolina Journal, which focuses on politics and public policy in North Carolina, the decision stems from VinFast's failure to meet its contractual obligations and deadlines. Bryan Thompson, Chatham County Manager, stated in an email that the board directed the county's legal counsel to send a notice of termination to VinFast Manufacturing USA, LLC, regarding the project at Triangle Innovation Point, which was initially planned to produce 150,000 EVs annually in its first phase. C. Michael Smith, President of the Chatham Economic Development Corporation, also confirmed the information in a statement to The Carolina Journal. Furthermore, in May, North Carolina Attorney General Jeff Jackson, on behalf of the state's Department of Commerce, filed a lawsuit against VinFast for breaching its signed agreements. Jackson stated that through this lawsuit, the state is exercising its contractual right to reclaim the land, thereby protecting taxpayer investments and retaining the site for future economic development opportunities. VinFast first announced its plan to build a plant in Chatham County in 2022, with an annual production capacity of 150,000 EVs and batteries, committing $4 billion in investment and promising 7,500 jobs. However, the start of production, initially slated for July 2024, has been postponed to at least 2028. The employment target has also been reduced from 7,500 to 1,400. Founded in 2017 by billionaire Pham Nhat Vuong, VinFast transitioned to producing only EVs in 2021 after phasing out gasoline car production. However, the company has incurred substantial losses in recent years, reporting a net loss of $3.9 billion in fiscal year 2025 and $3.18 billion in fiscal year 2024. These financial difficulties, coupled with the loss of incentives, cast a significant shadow over VinFast's global strategy, particularly its expansion into the US market.