July 31, 2023: On Friday, Vietnam’s VinFast will start constructing its electric vehicle factory in North Carolina regional time, the Vietnamese automaker established.

“We just completed getting the permit for the construction. We are very excited that it will be a big milestone for VinFast history in the U.S., and we will start groundbreaking for the works here in the U.S.,” VinFast CEO Le Thi Thu Thuy said.

The factory is expected to begin operations in 2025, a year later than its initial mark 2024.

“We see a lot of potential in the U.S. market with E.V. infrastructure and regulations to force E.V.s in central cities by 2035. So I think there’s a huge demand, and the whole world is moving to start internal explosion engine vehicles to E.V.s,” Le said on Friday.

VinFast has accepted inducements worth $1.2 billion from the state of North Carolina for the project.

“We consider there’s still considerable room for new players. I think the U.S. consumers are receptive to new players, as long as we have good quality products,” said Le.

VinFast entering the U.S. E.V. market means it will have to go up against Tesla and BYD, and traditional automakers are increasingly focusing on hybrids and E.V.s.

But crucially, the electric vehicles produced at VinFast’s new facility could qualify for up to $7,500 in U.S. tax credits. VinFast cars do not currently permit because they are not made in the country but are built in Vietnam.

According to Motor Trend, the company is also pricing its V.F. 9 model at a considerable discount to the comparable Tesla Model X. VinFast’s V.F. 9 prices are expected to begin at around $85,000 for the Eco model. A Tesla Model X costs about $100,000.

“Our technique has always been providing premium quality products at affordable pricing and excellent customer service. So we stay true to that strategy,” said Le.

“We are the only one in demand with a lineup of vehicles from tiny city vehicles like $12,000 to complete-size three-row SUVs like the V.F. 9 that will go to market in the U.S. later this year.”

VinFast’s U.S. growth has faced hurdles, including delayed deliveries to its first customers because of a software issue in May. The company also reduced its U.S. headcount in February.