VinFast downsizes planned EV factory in Chatham County as construction hits a snag

WRAL News obtained a copy of the foundation plans VinFast submitted to the county in December 2023. The revised plans reduce the footprint of the factory’s general assembly building to 782,255 square feet. That’s roughly a 20% reduction from the original plans for a 995,500-square-foot building. Chatham County approved a foundation permit for that size in July 2023.

That’s when VinFast celebrated the groundbreaking of its first factory outside its home country. Gov. Roy Cooper and state leaders were on hand for the ceremony on July 28, 2023. The company has said it plans to invest $4 billion into the factory which will have the capacity to produce up to 150,000 electric vehicles each year in the first phase of the project. The state and county are providing more than $1.2 billion worth of incentives.

On Friday, a VinFast spokesman provided a statement on the decision to reduce the size of its plant in Moncure.

"To meet the main technology contractor’s design requirements more precisely, we are adjusting the dimensions of the General Assembly workshop," the spokesman wrote. "By doing so, we can optimize the construction and operational costs of the factory once operational."

The spokesman said VinFast has submitted detailed factory design documents to Chatham County in April.

"[VinFast] hopes to receive approval soon," the spokesman wrote. "We require significant time to collaborate with the design team and the technology contractor to finalize the technical design of the workshops.""

Economist Mike Walden shared his perspective on VinFast's decision.

“I don't think that this is doomsday message from VinFast. I do think it still has a future here but maybe not as big of a future as it wanted,” Walden said.

WRAL News visited the future factory site on Wednesday at the Triangle Innovation Point megasite. It does not appear much work has been done since the groundbreaking ceremony in July when VinFast ceremoniously poured the first small section of foundation for the factory.

Chatham County said no construction is being done until a permit is issued for the revised foundation plans.

A North Carolina Department of Commerce spokesperson said alterations during construction are not unusual.

"It's not unusual for companies that are establishing a new facility to alter specific details of their plans. ... Like all the companies we work with, we continue to support VinFast as they navigate their construction process, and we look forward to the economic value this company and others will make as North Carolina becomes a global leader in the emerging clean energy economy," he said.

VinFast Board of Directors Chairwoman Thuy Le responded to a question about the progress on the factory during a call with investors as the company reported its first quarter 2024 earnings.

“North Carolina is still ongoing," Le said. "We’re still on track to start the operations by the end of next year, start hiring a lot of workers and putting in operations by the end of next year.”

Opening the factory in late 2025 is in line with what VinFast has said since March 2023 when it delayed the expected opening. VinFast originally planned to begin delivering vehicles from the Chatham County factory in the summer of 2024.

On Friday, VinFast declined to answer when specifically the company expects construction to finish and production to begin.

"We will provide construction progress updates as soon as the necessary procedures are completed," a VinFast spokesman said Friday.

Months ago, a VinFast spokesman told WRAL News, “Because we need more time to complete administrative procedures, VinFast’s EV factory project in North Carolina is expected to start production from 2025.”

Chatham County says it is still reviewing VinFast’s application for a permit to build an 850,564-square-foot body shop building, along with a trade permit for water and sewer.

The county already issued permits for retaining walls. A county spokesperson said the retaining walls are under construction.

The county does not appear to be worried by the factory downsizing.

In a statement to WRAL News, a county spokesperson says: “VinFast has not made us aware of any changes in their capital investment or job creation numbers of about 7,500.”