North Carolina sues Vietnam’s VinFast over delayed EV project

HANOI, May 22 (Reuters) – The State of North Carolina has sued Vietnamese EV maker VinFast for its alleged failure to meet its commitments to build an electric vehicle and battery factory in the state, Attorney General Jeff Jackson said in a statement.

• VinFast has abandoned work on the 712-hectare (1,759-acre) site in Chatham County for over a year, according to the statement issued on Thursday.

• VinFast was earlier licenced to build the plant with commitments to create 7,500 jobs and invest over $3 billion in North Carolina, the statement said.

• “VinFast has defaulted on its agreements with the State, and VinFast’s continued inaction all but guarantees imminent further default,” it said.

• VinFast didn’t immediately respond to a Reuters request for comment.

• In 2022, VinFast said the plant would have an annual production capacity of 150,000 vehicles. In 2024, it said it would delay the launch of the plant to 2028 amid market uncertainties.

• North Carolina should be allowed to exercise its option to purchase the land for a future manufacturer, and wants to be repaid $80 million allocated to VinFast for site preparation, the statement said.

• VinFast initially targeted to have the factory up and running by July 1 this year, but had later said it couldn’t do so until 2028, according to the statement.

• VinFast announced last week it will sell its Vietnamese manufacturing business for 13.3 trillion dong ($506 million) to a group of investors who ​will also assume roughly $6.9 billion in debt.

• Shares in Vingroup, VinFast’s parent company, fell 3.5% on Friday morning in Hanoi.

(Reporting by Khanh Vu, Francesco Guarascio and Phuong Nguyen; Editing by David Stanway)