North Carolina has taken legal action against VinFast over the automaker's stalled electric vehicle plant in Chatham County.
The state invested heavily in the project, but construction has been delayed for years.
Attorney General Jeff Jackson filed a lawsuit alleging that VinFast breached its agreements with the state.
The company was awarded a Job Development Investment Grant and the General Assembly appropriated $450 million for site preparation and infrastructure.
Project Timeline and Delays
VinFast announced plans in 2021 to build a production facility in North Carolina, with vehicle production slated to begin in 2024.
A symbolic groundbreaking occurred in 2023, and the plant was touted as the state's first EV manufacturing facility and its largest economic development initiative.
The first phase required an investment of up to $2 billion to build a 1,800-acre complex with five production areas.
The plant was intended to produce the VF 7, VF 8, and VF 9, with an annual capacity of 150,000 units.
Production targets slipped to 2025, then in July 2024 VinFast paused the project after a difficult US launch.
The company later suggested production would begin in 2028, but on a smaller scale.
North Carolina officials say VinFast cleared and graded the site in 2023 but has since failed to meet key obligations and performance requirements.
The agreement required the facility to be operational by July 2026 and create 1,750 jobs by year-end.
State Seeks to Reclaim Site
The state notified VinFast of default in January and expressed intent to acquire the site. VinFast protested, claiming it met construction deadlines and would open in 2028.
However, the lawsuit aims to take control of the property so it can be used by another company that will build a facility and create jobs.
In a statement, Attorney General Jackson said, “VinFast agreed to build a factory and create jobs for North Carolinians – it didn’t do either.
When North Carolina makes a deal, we build in protection for taxpayers.
VinFast broke the deal, so we’re using that protection to find a project for this site that will create jobs.”
VinFast has reportedly blamed the elimination of the clean vehicle tax credit for the delays.
According to Bloomberg, the company said recent US policy changes have impacted the project timeline and require additional time to evaluate implementation conditions.
