Vietnamese electric vehicle manufacturer VinFast began production on Sunday at its second domestic factory, aiming to ramp up output of affordable mini urban models as its global expansion plans face delays. The new facility, located in the central province of Ha Tinh, has an initial annual capacity of 200,000 units and spans 36 hectares (90 acres), positioning VinFast for aggressive regional growth.
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Strategic Manufacturing Expansion: Doubling Down on Vietnam
Production Powerhouse: By comparison, VinFast’s flagship factory in northern Haiphong is designed to reach a capacity of 950,000 units by next year. Combined with the new Ha Tinh facility, VinFast aims to achieve 1 million vehicles per year production capacity to meet increasing domestic and international demand.
Record-Speed Development: The pace of the project is at record speed, with operations set to begin in July 2025, a mere eight months after the project kicked off. The new plant should create nearly 6,000 new jobs for locals, which the company said could later increase to 15,000.
Comprehensive Global Manufacturing Strategy
| Facility | Location | Annual Capacity | Status | Key Focus |
|---|---|---|---|---|
| Haiphong Plant | Northern Vietnam | 950,000 units | Operational | Full model range |
| Ha Tinh Plant | Central Vietnam | 200,000 units | Just opened | VF 3 & VF 5 models |
| India Assembly | Tamil Nadu | 150,000 units | Opens June 2025 | Regional production |
| Indonesia Plant | Subang, West Java | 50,000 units | Opens Q4 2025 | Right-hand drive models |
| US Factory | North Carolina | TBA | Delayed to 2028 | American market |
Market Challenges Drive Strategic Pivot
Domestic Dominance: Of the 97,399 vehicles VinFast sold last year, around 90% were absorbed domestically. In September 2024, it became the country’s top-selling car brand, dominating domestic EV sales thanks to a near monopoly over charging infrastructure.
Global Expansion Reality Check: However, it has faced hurdles in its global expansion, including weaker demand and stiff competition. The company announced last year that operations at its US factory would be delayed until 2028, shifting focus to Asian markets where growth prospects appear stronger.
Asian Market Focus: India and Indonesia Leading the Charge
India Investment: Last year VinFast announced that it intended to invest up to $2 billion in the southern Indian state of Tamil Nadu for a new assembly plant with an estimated annual production capacity of up to 150,000 units, creating 3,000-3,500 jobs.
Indonesia Strategy: The new VinFast assembly plant, located in the emerging industrial hub of Subang, represents an initial investment of around 200 million USD. Scheduled to commence operations in Q4 2025, the plant will produce right-hand drive versions of VinFast’s e-SUV models, including VF 3, VF 5, VF 6 and VF 7.
Financial Performance and Market Position
Sales Growth Trajectory: The EV maker has set a delivery target of 200,000 cars for 2025, having sold approximately 56,000 units in the first five months, primarily in its domestic market.
Investment Scale: Since its inception in 2017 up until November last year, VinFast has received capital injections totalling around $17 billion from Vingroup, its affiliates, and founder Vuong, demonstrating massive commitment to EV development.
Regional Market Dynamics
Competition Landscape: “VinFast is refocusing on markets where it has a better chance of success. Southeast Asia should have been the priority from the start, given its proximity and rising EV adoption,” said Soumen Mandal, senior analyst at Counterpoint Research.
Strategic Advantages: VinFast’s pivot eastward reflects strategic realism. Building plants in Asia reduces reliance on expensive Western distribution, shortens supply chains, and aligns with local consumer demand and policy trends.
For comprehensive coverage of Asian EV market developments, explore our ASEAN Electric Vehicle News and Vietnam EV Industry Updates. Stay informed about global EV manufacturing trends and Asian automotive investment patterns.
Bottom Line: VinFast’s second Vietnam factory represents a strategic refocus on Asian markets, leveraging domestic strength and regional proximity to build sustainable growth while global expansion plans mature. With 1.15 million units combined capacity by 2025, VinFast is positioning itself as Southeast Asia’s EV manufacturing powerhouse.
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