Vietnamese electric vehicle maker VinFast commenced production at its second domestic factory, aiming to expand the output of affordable mini urban models amid delays in its global expansion. The new plant, located in Ha Tinh province, has an initial annual capacity of 200,000 vehicles and covers 36 hectares.

On the contrary, VinFast’s main facility in Haiphong is expected to reach a capacity of 950,000 units by next year. Backed by Vingroup, Vietnam’s largest conglomerate, VinFast plans to establish plants in the US, India, and Indonesia. However, global expansion has been slowed by softer demand and increased competition.

VinFast postponed its US plant operations to 2028, while its India facility is expected to begin operations next month. Vingroup CEO Nguyen Viet Quang stated that the Ha Tinh factory will support the company’s target of producing one million vehicles annually. VinFast aims to deliver 200,000 vehicles in 2025, after selling around 56,000 units in the first five months.