VINFAST RECEIVES $1.2 BILLION IN INCENTIVES FOR US MANUFACTURING HUB IN NORTH CAROLINA
VinFast announced they have received a $1.2 billion incentive package from the State of North Carolina for its electric vehicle manufacturing project in the US. The largest economic incentive package in state history was signed this week by Governor Roy Cooper, making VinFast the first car maker to locate in the North Carolina.
The VinFast’s manufacturing facility will be built at the Triangle Innovation Point in Chatham County, North Carolina with a total investment of about $2 billion USD in the first phase.
Covering an area of 2,000 acres, with two main areas: electric cars and buses production and assembly, and ancillary industries for suppliers, VinFast’s factory is designed to reach the capacity of 150,000 vehicles per year. When brought into operation, the manufacturing complex will create an ecosystem of suppliers as well as thousands of local jobs, thereby creating both direct and indirect economic benefits.
“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, said Roy Cooper, Governor of North Carolina. “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.”
“VinFast applauds North Carolina for their efforts and determination in advancing the state’s clean energy economy and carbon mitigation goals,” said Van Anh Nguyen, CEO of VinFast Manufacturing US. “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 government and industry can come together to pursue a brighter future.”
Phase one of the project will start construction in the second half of 2022 and production is expected to commence from July 2024. The factory establishment once again affirms VinFast’s commitment to expand its business and invest in key locations across the US and globally.
In North Carolina, VinFast will be the first car factory and the largest economic development project in the state’s history to date.
“The North Carolina General Assembly is thrilled that VinFast chose North Carolina for its monumental expansion,” said Phil Berger, President Pro Tempore of the North Carolina Senate. “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.”
“North Carolina is heading into an exciting era of innovation with one of our newest corporate citizens, VinFast,” said Tim Moore, Speaker of the North Carolina House of Representatives. “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:
- 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
- $400 million in incentives from Chatham County
Additionally, VinFast has received incentives from commercial organizations in the State of North Carolina, which is excluded from the government budget, up to hundreds of millions USD