Vietnamese electric vehicle startup VinFast announced they have 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 in the North Carolina.
The VinFast’s manufacturing facility will be built at the Triangle Innovation Point in Chatham County, North Carolina with a total investment of about $2 billion USD in the first phase.
Covering an area of 2,000 acres, with two main areas: electric cars and buses production and assembly, and ancillary industries for suppliers, VinFast’s factory is designed to reach the capacity of 150,000 vehicles per year. When brought into operation, the manufacturing complex will create an ecosystem of suppliers as well as thousands of local jobs, thereby creating both direct and indirect economic benefits.
Phase one of the project will start construction in the second half of 2022 and production is expected to commence from July 2024. The factory establishment once again affirms VinFast’s commitment to expand its business and invest in key locations across the US and globally.
In North Carolina, VinFast will be the first car factory and the largest economic development project in the state’s history to date.
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
Additionally, VinFast has received incentives from commercial organizations in the State of North Carolina, which is excluded from the government budget, up to hundreds of millions USD.
In a related news, VinFast opened six stores this week in California, with locations in Santa Monica, San Mateo, La Jolla, Los Angeles, Berkeley, and the Bay Area. The showrooms are stocked with the company’s first two EV’s, the VF 8 and VF 9. The VF 8 is a 5-seat AWD SUV with an expected range of just over 300 miles and a price tag starting at $40,700. The VF 9 is a full-sized SUV with 3 rows of seating, a max range of 369 miles, and a base price of $55,500.
VinFast showrooms will also likely serve as a forum for the company to explain its battery leasing program. The basic plan comes in at $35 a month for the VF 8 and $44 for the VF 9. Motorists will get up to 310 miles of free use each month. Motorists who go above that will pay an additional 11 cents per mile for the VF 8 and 15 cents with the VF 9. An alternate, all-you-can-drive plan will run $110 a month for the VF 8 and $160 for the VF 9.