Vietnamese battery electric vehicle (BEV) manufacturer, VinFast Auto, is prioritizing expansion in Asia in the short term, with the US and Europe taking a back seat, citing rising logistics costs and the need to prioritize its use of internal resources.
Speaking at the company’s shareholders meeting in Hanoi at the end of last month, Phạm Nhật Vượng, the chairman of VinGroup – the automaker’s parent company, confirmed that VinFast has shifted its focus to expanding in Asia this year, particularly in Vietnam, Indonesia, India and the Philippines.
The automaker is scheduled to complete construction of a BEV plant in Indonesia in the third quarter of 2025, with production operations expected to begin in October, after the company secured a syndicated loan for up to US$ 193 million from local banks in early May. VinFast has also signed partnerships with local aftermarket service providers this year.
VinFast also confirmed that it set to begin construction of a US$ 500 million BEV plant in India’s Tamil Nadu state at the end of June, with a production capacity of 150,000 vehicles per year, with completion scheduled for 2026.
Mr Vượng said in a statement: “VinFast will temporarily pause its expansion plans in the US, Canada and Europe due to high logistics costs. The US$4 billion factory in North Carolina will also postpone its operational start to 2028, as we wait for clearer market signals.” He pointed out that markets in the West have not “fully embraced emerging electric vehicle manufacturers,” while the decision to delay expansion in these regions will also help the company preserve cashflow.
Mr Vượng confirmed that VinFast has set a sales target of 200,000 battery electric vehicles in Việt Nam this year, more than double the 97,000 units it sold last year, to account for close to 40% of the country’s total vehicle market.
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