Vietnamese electric vehicle manufacturer VinFast is facing legal action from North Carolina officials who claim the company has broken promises to build a major manufacturing facility in their state, according to a statement from Attorney General Jeff Jackson released Thursday.
The lawsuit alleges that VinFast has ceased all activity at a 712-hectare (1,759-acre) location in Chatham County for more than twelve months. The company had received authorization to construct the facility with pledges to generate 7,500 employment opportunities and pour more than $3 billion into North Carolina’s economy.
“VinFast has defaulted on its agreements with the State, and VinFast’s continued inaction all but guarantees imminent further default,” the statement declared.
When contacted by Reuters, VinFast representatives stated they had not yet been served with any formal legal documents from the state. “Contracts with contractors have already been signed, and construction activities are expected to commence shortly in accordance with the planned schedule,” the company responded.
Originally, VinFast announced in 2022 that the facility would produce 150,000 vehicles annually. However, by 2024, the company pushed back the plant’s opening until 2028, citing market uncertainties.
State officials are seeking the right to buy back the property for a different manufacturer and want VinFast to return $80 million that was provided for site development work.
The manufacturing facility was originally scheduled to begin operations by July 1 of this year, but the company later announced the delay until 2028, according to the state’s statement.
VinFast explained that recent shifts in U.S. electric vehicle industry policies have affected their project timeline, necessitating additional time “to evaluate appropriate implementation conditions.”
The electric vehicle maker announced last week it plans to sell its Vietnamese manufacturing operations for 13.3 trillion dong ($506 million) to investor groups who will also take on approximately $6.9 billion in company debt.
Stock prices for Vingroup, which owns VinFast, dropped 3.5% during Friday morning trading in Hanoi.
