Vietnam: VinFast to supply 3,000 electric cars for Green SM

VinFast Auto (VFS) has paused plans to manufacture three electric vehicles in India, including the VF3, VF6, and VF7 models, while reassessing costs. The company continues CKD assembly of the VF6 and VF7. VinFast reported strong global EV deliveries, up 96% year-over-year in Q2, but remains unprofitable with a $4.2 billion net loss over the past year. The company faces competition and cost pressures in India.

VinFast has suspended local manufacturing of three EV models in India, including the VF3, VF6, and VF7, while reassessing costs. The company denied halting plans for the VF6 and VF7, which are currently assembled in India. VinFast aims to adjust products to better meet Indian market needs, according to a company representative. The automaker has invested $2 billion in its Indian factory, which has an initial annual capacity of 50,000 cars.

VinFast, the Nasdaq-listed EV maker (VFS), signed an MoU with Indonesia’s Gowa Motor Group to form a joint venture to expand VinFast’s dealership network. The plan calls for at least 30 VinFast showrooms and service centers in Indonesia. VinFast says it already has 40+ showrooms and targets 150+ new ones, supported by local manufacturing in Subang.

Chatham County, North Carolina, voted to terminate a $400 million economic development agreement with VinFast over missed performance obligations and deadlines for a planned EV factory at Triangle Innovation Point. The state, via AG Jeff Jackson, sued for breach and sought contractual rights to acquire the site. VinFast had planned 150,000 vehicles/year in Phase 1 and 7,500 jobs, later reduced; openings slipped to 2025 and reportedly 2028.

VinFast said it expects to break even in Vietnam by 2027 and turn globally profitable shortly after, according to deputy CEO Anne Pham at the Bloomberg Sustainable Business Summit. The VF 2 launched in early July at VND188m ($7,145) drew about 29,000 orders in three days. VinFast delivered 115,916 vehicles in Vietnam H1 (+72% y/y) and posted a Q1 net loss of VND28.1tn (+58.9%). It also faces a North Carolina legal dispute.

VinFast, Vietnam’s largest EV maker, reported Q1 revenues of more than $920 million, up nearly 42% year on year, citing higher deliveries amid rising fuel prices. The company delivered over 58,500 EVs in the quarter, up 61%. VinFast said growth came from Vietnam and markets including India, Indonesia, and the Philippines.