VinFast Launches Second Vietnam EV Factory to Boost Affordable Urban Models

On June 29, 2025, Vietnamese electric vehicle (EV) manufacturer VinFast began production at its new Ha Tinh factory, a strategic move to scale up output of affordable mini urban models amid global expansion challenges. The facility, spanning 90 acres, aims to produce 200,000 vehicles annually, complementing the company’s flagship Haiphong plant, which targets 950,000 units by 2026, reports Reuters.

Strategic Expansion in Vietnam

Located in central Vietnam’s Ha Tinh province, the new factory strengthens VinFast’s domestic production capacity. The company, backed by Vingroup, Vietnam’s largest conglomerate, is focusing on compact EVs designed for urban environments, addressing rising demand for cost-effective electric mobility.

Nguyen Viet Quang, Vingroup’s CEO, emphasized the factory’s role, stating, “Once operational, the VinFast Ha Tinh factory will contribute to VinFast’s goal of producing 1 million vehicles per year to meet the increasing demand of domestic and foreign markets.”

This move comes as VinFast sold 56,000 vehicles in the first five months of 2025, mostly in Vietnam, and aims to deliver 200,000 units by year-end. The Ha Tinh plant’s output will help bridge the gap between current sales and the company’s ambitious targets, particularly in the domestic market where urban EVs are gaining traction.

Global Plans Face Delays

VinFast’s international ambitions, including factories in the United States, India, and Indonesia, have hit roadblocks. The U.S. plant’s operations are now delayed until 2028, while the India facility is slated to start next month. These setbacks stem from weaker global demand and fierce competition from established EV makers. Despite this, VinFast remains committed to its goal of becoming a global player, leveraging its domestic base to stabilize production.

Financially, the company reported a first-quarter net loss of $712.4 million, an improvement from the prior quarter’s $1.3 billion but 20% higher than a year ago. Revenue, however, soared 150% to $656.5 million, signaling strong domestic market performance.

Implications for EV Owners and Industry

For EV owners and enthusiasts, VinFast’s focus on affordable urban models could offer more accessible options in the compact EV segment, particularly in Southeast Asia. The Ha Tinh factory’s production will likely prioritize vehicles with efficient battery ranges suited for city driving, potentially undercutting competitors on price. However, global delays may limit near-term availability in markets like the U.S.

From an industry perspective, VinFast’s domestic expansion underscores Vietnam’s growing role in EV manufacturing. The company’s ability to scale production while navigating financial losses and global hurdles will test its long-term viability. Regulatory support in Vietnam, including incentives for EV adoption, could further bolster VinFast’s position, but international trade barriers and supply chain constraints remain risks.

Technical and Economic Outlook

The Ha Tinh facility, though smaller than Haiphong’s, incorporates advanced manufacturing techniques to optimize output. Its 200,000-unit capacity targets models with lithium-ion battery packs, likely offering ranges of 150–200 miles per charge, ideal for urban commuters. Economically, the factory creates jobs in Ha Tinh and supports Vietnam’s push toward sustainable transport. However, VinFast’s $712.4 million quarterly loss highlights the capital-intensive nature of EV production, requiring careful cost management to achieve profitability.

VinFast’s dual focus on domestic growth and global aspirations positions it as a key player to watch. The Ha Tinh factory’s success will hinge on meeting production goals and delivering affordable EVs that resonate with consumers, both in Vietnam and beyond.