Vietnamese carmaker VinFast has secured a $1.2 billion incentive package from the State of North Carolina for its electric vehicle manufacturing project in the U.S., the Vietnamese EV startup announced Friday.
The economic incentive package, signed by Governor Roy Cooper, is the largest ever granted in North Carolina. VinFast will be the first car factory and the largest economic development project in the state's history to date.
The facility will be developed at the Triangle Innovation Point in Chatham County with a first phase investment of about $2 billion.
Covering an area of 2,000 acres, the facility will have two main areas: one for assembling and producing electric cars and buses; and another for ancillary supplies.
It is envisaged that the VinFast factory will reach the capacity of 150,000 vehicles per year, creating an ecosystem of suppliers and thousands of jobs.
“North Carolina’s partnership with VinFast to bring good, clean energy jobs to North Carolina took an important step forward today with the signing of the budget,” a VinFast release quoted the Governor Roy Cooper as saying.
“Electric vehicles, like the ones VinFast will produce in Chatham County, are a critical component of our strategy to reduce greenhouse gas emissions and build North Carolina into a hub for the clean energy economy,” the governor said.
Van Anh Nguyen, CEO of VinFast Manufacturing U.S., said: “VinFast applauds North Carolina for its efforts and determination in advancing the state’s clean energy economy and carbon mitigation goals.
“This investment by the State of North Carolina is the starting point for a future marked by innovation, job creation and economic growth. Today exemplifies how a government and an industry can come together to pursue a brighter future.”
Phase one construction is scheduled to start in the second half of 2022 with production commencing in July 2024.
The factory reflects VinFast’s commitment to expanding its business and investments in key locations in the U.S. and elsewhere in the world.
Phil Berger, President Pro Tempore of the North Carolina Senate, said: “The North Carolina General Assembly is thrilled that VinFast chose North Carolina for its monumental expansion.
“There’s no question the business-friendly policies we’ve prioritized over the last decade played a pivotal role in VinFast’s plan to bring thousands of good-paying jobs to North Carolina,” he added.
Tim Moore, Speaker of the North Carolina House of Representatives, commented that the state was heading into “an exciting era of innovation” with one of its “newest corporate citizens.
“As our state continues its growth with new and expanding businesses, we will continue to work alongside VinFast as the company establishes roots in North Carolina and brings new jobs and opportunities for North Carolinians.”
VinFast has also received critical financial support from the City of Sanford, Chatham County and the Golden Leaf Foundation. The complete incentive package includes a job development investment grant of $316 million over 32 years; state appropriation of $450 million to cover site preparations, road improvements and additional water and sewer infrastructure; community college training worth $38 million; Golden Leaf Foundation grant of $50 million; and $400 million in incentives from Chatham County.
The Vietnamese EV maker has also received incentives of hundreds of millions of dollars from commercial organizations in the state that are excluded from the government budget.
VinFast recently signed agreements with Credit Suisse and Citigroup on underwriting advisory for global capital raising transactions to fund its U.S. plant. Each contract has a minimum value of about $2 billion, focusing on building the North Carolina facility and making other business investments in the U.S. market.