VinFast, the electric car manufacturer committed to building a manufacturing facility in Chatham County, announced an adjustment to the original timeline for the launch of its North Carolina location.

The factory, which officials said could bring 7,500 jobs to the area, was originally expected to open in late 2025. Now production won't begin until 2028, the company said.

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VinFast plant timeline

March 2022:VinFast announces manufacturing plant in Chatham County, plans to begin manufacturing and production by 2024

March 2023:VinFast announces delay in production to 2025

December 2023:VinFast submits plans for smaller facility, 20% reduction in size

July 2024:VinFast announces production will begin in 2028

EV demand growing slowly

While the Vietnamese carmaker continues to grow worldwide, delivering about 25% more vehicles than a year ago, the company said, "ongoing economic headwinds and uncertainties in different macro-economies and global EV landscape necessitate a more prudent outlook for the rest of the year."

Economist Mike Walden said VinFast faces problems specific to being a startup carmaker in the US and problems familiar to other EV makers.

"They're a brand new company," he said. "They have minimal sales here in the US as well as worldwide. They have to prove themselves, so that's always a challenge for new company."

At a macro level, VinFast's timing, Walden said, with a limited number of car buyers considering full electric vehilces as an option, presents another challenge.

"They've hit the EV market just when the EV market has been struggling," he said. "EV prices, although they've moderated recently are still pricing people – even with the federal incentives – still pricing a lot of people out of the market. People are concerned about not enough charging stations, etc.

"This is nothing about their product, but the timing of when they entered the EV market probably could not have been worse."

VinFast has said it plans to invest $4 billion in the Chatham County factory, which will have the capacity to produce up to 150,000 electric vehicles each year in the first phase of the project.

In April, WRAL News reported VinFast had scaled down the size of its manufacturing plant in Moncure to 782,255 square feet, a 20% reduction from the original plans for a 995,500-square-foot building.

Thuy Le, chairwoman of the VinFast board of directors, said, "We have adopted a more prudent outlook that is carefully calibrated to near-term headwinds, taking into full consideration the realities of market volatility and potential challenges. Our robust long-term strategy and proven execution capabilities position us well to meet the evolving needs of the dynamic global EV market."

"This decision will allow the company to optimize its capital allocation and manage its short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations," said officials in a release.

VinFast has opened dealerships in Cary and in Greensboro, where drivers can purchase electric SUVs and sedans.

In Chatham County, commissioners have approved plans for the VinFast general assembly building and body shop within the past 90 days, but county leaders still need additional information to finalize those permits.

Chatham County Manager Dan LaMontagne said he still expects the plant to be built and jobs created.

"We are confident that there is no change in VinFast's scope or vision for the project here in Chatham County," he said.

LaMontagne also pointed out that tax breaks to VinFast are dependent on the company delivering on promises of job creation.

"If they don't meet those goals, then the incentives contract is pared back proportionately to the number of employees they said they'd hire," Walden said.

The company also announced that it will release its 2Q24 financial results before the market opens on August 15, 2024.