VinFast receives $1.2 bn incentive for EV manufacturing project

VinFast EV electric vehicle business

VinFast has received a $1.2 billion incentive package from the State of North Carolina for its electric vehicle manufacturing project in the US.

The largest economic incentive package in state history was signed this week by Governor Roy Cooper, making VinFast the first car maker to locate at in Chatham County in the North Carolina.

VinFast will build the EV manufacturing facility at the Triangle Innovation Point in Chatham County, North Carolina with a total investment of about $2 billion in the first phase. VinFast’s EV making factory is designed to reach the capacity of 150,000 vehicles per year.

The EV manufacturing facility will be covering an area of 2,000 acres, with two main areas: electric cars and buses production and assembly, and ancillary industries for suppliers.
VINFAST US MANUFACTURING HUB IN NORTH CAROLINANorth Carolina’s partnership with VinFast to bring good, clean energy jobs to North Carolina took an important step forward today with the signing of the budget, said Roy Cooper, Governor of North Carolina.

Van Anh Nguyen, CEO of VinFast Manufacturing US, said: “This investment by the State of North Carolina is the starting point for a future marked by innovation, job creation, and economic growth.”

VinFast said phase one of the project will start construction in the second half of 2022 and production is expected to commence from July 2024.

VinFast has also received critical financial support from the City of Sanford, Chatham County and the Golden Leaf Foundation. The complete incentive package includes:

Job Development Investment Grant of $316 million over 32 years

State appropriation of $450 million, to cover site preparations, road improvements, and additional water and sewer infrastructure.

Community college training worth $38 million

Golden Leaf Foundation grant of $50 million

$400 million in incentives from Chatham County

VinFast has also received incentives from commercial organizations in the State of North Carolina, which is excluded from the government budget, up to hundreds of millions USD

Image: Vingroup Vice Chair & VinFast Global CEO – Madam Le Thi Thu Thuy and North Carolina Governor Roy Cooper in the signing ceremony for the MoU on VinFast’s US factory project in March 2022