On Friday, July 28, Vietnamese new energy vehicle company VinFast announced the groundbreaking of its electric vehicle manufacturing base in North Carolina, U.S., signaling a significant milestone in the company's global expansion and North American supply chain development after some delay.
VinFast, founded in 2017, is a subsidiary of Vingroup, one of Vietnam's largest publicly traded companies, overseen by Vietnam's richest man, Pham Nhat Vuong. Vingroup operates in various sectors including industry, real estate, and technology, with its 2022 revenue accounting for 2.2% of Vietnam's GDP. From its inception, VinFast has carried the hopes of Vietnam's national automotive industry, with Vuong ambitiously positioning Tesla as a benchmark.
The VinFast U.S. factory project represents not only North Carolina's first electric vehicle manufacturing plant but also one of the state's largest economic stimulus initiatives in its history.
The initial phase of the factory, with an investment of up to $2 billion, spans approximately 1,800 acres and is divided into five main production areas: body shop, assembly shop, stamping shop, painting shop, and energy center. The complex will also house other functional facilities.
In its initial stage, the factory will focus on the production of VinFast's VF 7, VF 8, and VF 9 electric vehicles, with an estimated annual capacity of 150,000 units. Suppliers for the factory's components and materials will primarily be based in the U.S., Vietnam, and several other countries. Future expansions and upgrades of the factory will be decided in the next phase.
On the same day, VinFast also announced its plans to go public in the U.S. in August through a merger with special purpose acquisition company Black Spade Acquisition Co., following the U.S. Securities and Exchange Commission's (SEC) approval of the proposed business combination.
Dennis Tam, Chairman and Co-CEO of Black Spade, conveyed that the SEC's approval of the merger between Black Spade and VinFast marked an important step towards listing.
A joint statement from both companies mentioned that Black Spade will convene a special shareholders meeting to approve the proposed merger with VinFast.
According to a statement from parent company Vingroup in May, the merged entity will value VinFast's equity at approximately $23 billion, leading to an estimated valuation of around $27 billion for the electric vehicle manufacturer, debt included. Should the company successfully go public, it will become the highest-valued Vietnamese company to list in the U.S.
VinFast's journey to opening a factory and listing in the U.S. has not been without hurdles.
The company's North Carolina factory was originally scheduled to begin vehicle production in 2024, but this timeline has now been pushed back to 2025. Until then, all VinFast vehicles sold in the U.S. will be imported from its production center in Vietnam. VinFast began selling cars in California in March this year, only to recall them two months later due to a safety warning issued by the National Highway Traffic Safety Administration.
Moreover, similar to many Asian companies setting up shop in the U.S., establishing a factory can often prove more difficult and time-consuming than anticipated due to significant regulatory policy differences between the U.S. and local countries.
