Vingroup breaks ground on $290M EV plant, its 2nd in Vietnam

Construction of the first phase of the factory, in the central province of Ha Tinh, is expected to take eight months. Vinhomes, Vingroup’s property arm, is in charge of construction.

VinFast Ha Tinh will mostly produce VF 3 and VF 5, two of its most popular models, with components sourced from the automaker’s first plant in the northern port city of Hai Phong.

The batteries will come from Vingroup’s VinES factory, which is situated in the same economic zone as the new plant, Vung Ang.

Vung Ang Economic Zone in Ha Tinh Province, central Vietnam, where Vingroup has begun construction of its second EV plant in Vietnam. Photo by VnExpress/Duc Hung

In the first phase the plant will have a capacity of 300,000 vehicles a year, and is likely to be doubled in subsequent phases. When the plant goes on stream in July next year it will create 6,000 jobs.

Nguyen Viet Quang, deputy chairman and CEO of Vingroup, said the new plant would lay a solid foundation for VinFast's next phase of rapid growth and expansion.

Deputy Prime Minister Tran Hong Ha highlighted the project's economic and commercial significance, and urged Ha Tinh Province to leverage the investor's capabilities and adopt innovative approaches to transform into a smart green hub.

Vingroup also seeks to develop a logistics and port complex at a cost of VND40 trillion in Vung Ang. The zone was built in 2006 and now has 151 tenants who employ nearly 20,000 workers.

Its major tenants include a $10-billion steel complex owned by Taiwan’s Formosa and the $1.2-billion Vung Ang Thermal Power Plant.