Vietnamese electric vehicle maker VinFast has officially launched its second domestic manufacturing facility in the central province of Ha Tinh. The VinFast Ha Tinh factory, which began operations on Sunday, is part of the company’s strategy to increase the output of affordable mini EVs, especially as its international expansion efforts face delays. Spanning 36 hectares, the facility boasts an initial annual production capacity of 200,000 vehicles.
This new development adds to VinFast’s existing flagship factory in Haiphong, which is targeting a production capacity of 950,000 units by 2026. Backed by Vietnam’s largest conglomerate, Vingroup, the move is seen as a strategic pivot to strengthen the company’s domestic foundation while it navigates hurdles abroad.
“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,” said Nguyen Viet Quang, CEO of Vingroup.
International Expansion Faces Delays and Stiff Competition
Despite ambitious goals to set up factories in major global markets, including the United States, India, and Indonesia, VinFast has encountered several setbacks. The company postponed the launch of its U.S. factory until 2028, citing slower-than-expected demand and tough competition from established global automakers. Meanwhile, VinFast’s Indian assembly plant is expected to start operations next month, a slight bright spot amid ongoing challenges.
VinFast has made headlines with its aggressive push into the EV space, but international markets have proven difficult to crack. Weaker-than-expected demand, intense rivalry, and logistical hurdles have slowed the brand’s expansion despite major investments and global marketing efforts.
Nonetheless, VinFast continues to maintain a robust vision for international growth. The VinFast Ha Tinh factory is a critical component in shoring up supply capacity for both domestic consumption and future exports.
Financial Performance and Sales Targets for 2025
VinFast has set a delivery target of 200,000 vehicles for 2025, a significant jump from the 56,000 units sold in the first five months of the year, primarily within Vietnam. While the company still operates at a net loss, there are signs of improvement. In Q1 2025, VinFast reported a net loss of $712.4 million, down from $1.3 billion in the previous quarter, though still 20% higher than the same period last year.
On the brighter side, the company’s revenue surged 150% year-over-year to $656.5 million, driven by growing domestic sales and enhanced brand visibility.
As VinFast pushes forward with its dual strategy of domestic consolidation and global ambition, the opening of the VinFast Ha Tinh factory marks a significant step. Whether the company can meet its aggressive targets and overcome global headwinds remains to be seen, but for now, the focus is squarely on building momentum from home.
Visit more of our news! Mr. Business Magazine.
