VinFast Expands with Second Electric Vehicle Plant in Vietnam: New Facility Aims for 200,000 Annual Production Capacity.

VinFast Auto has opened its second electric vehicle manufacturing plant in Ha Tinh, Vietnam, with an initial annual production capacity of 200,000 vehicles. The new facility will produce budget-friendly models VF 3 and VF 5, despite the company's growing revenue and widening losses.

Vietnamese electric vehicle manufacturer VinFast Auto Ltd has opened its second domestic factory in the central province of Ha Tinh. The new facility, which spans 36 hectares (90 acres), has an initial annual production capacity of 200,000 vehicles. This expansion aims to increase the output of affordable mini urban models, such as the VF 3 and VF 5, as the company continues its global expansion plans despite recent setbacks.

The new Ha Tinh factory complements VinFast's flagship facility in northern Haiphong, which is designed to reach a capacity of 950,000 units by next year. The company's global expansion plans have faced delays, with the U.S. factory's operations now expected to commence in 2028, and the India assembly plant set to become operational next month.

VinFast, backed by Vietnam's largest conglomerate Vingroup, has set ambitious goals to produce 1 million vehicles per year to meet the growing demand in both domestic and foreign markets. The company aims to deliver 200,000 cars by the end of 2025, having sold approximately 56,000 units in the first five months of the year, primarily in its domestic market.

Despite the company's growing revenue, VinFast reported a net loss of $712.4 million for the first quarter of 2025, which was less than the $1.3 billion loss in the previous quarter but 20% more than a year earlier. Revenue, however, jumped 150% to $656.5 million over the same period.

The new Ha Tinh factory is expected to contribute significantly to VinFast's goal of increasing production capacity to meet the growing demand for electric vehicles in Vietnam and internationally. The company remains focused on its strategic objectives despite the challenges faced in its global expansion.

References:
[1] https://www.reuters.com/business/autos-transportation/vinfast-opens-second-domestic-ev-factory-amid-global-expansion-2025-06-29/