VinFast, Vietnam’s Electric Vehicle Manufacturer, to Commence Construction on Long-Awaited U.S. Plant

Le acknowledged the growing competition in the U.S. market.

“We believe there is still ample opportunity for new entrants. As long as we offer high-quality products, U.S. consumers are receptive to new players,” said Le.

VinFast’s entry into the U.S. EV market means it will be going head-to-head with Tesla and BYD, as well as traditional automakers ramping up their focus on hybrids and EVs.

Moreover, electric vehicles manufactured at VinFast’s new facility would potentially be eligible for up to $7,500 in U.S. tax credits. Currently, VinFast vehicles do not qualify as they are produced in Vietnam rather than the U.S.

The company is also positioning its VF 9 model at a significantly lower price compared to the comparable Tesla Model X. Motor Trend estimates the starting price for VinFast’s VF 9 at around $85,000 for the Eco model, while a Tesla Model X costs approximately $100,000.

“Our strategy from the outset has always been to provide premium quality products at affordable prices, paired with exceptional customer service. We remain committed to this strategy,” Le said.

“We are the only market player offering a range of vehicles, from small city cars priced at $12,000 to full-size three-row SUVs like the VF 9, which will hit the U.S. market later this year.”

VinFast’s expansion into the U.S. market has encountered obstacles, including delays in delivering its initial vehicles to customers in May due to a software issue. In February, the company also downsized its U.S. workforce.

“We recalled the vehicles due to a potential screen blackout issue. As a precautionary measure, we conducted a software update to address the problem. While we did announce the recall, it was purely for a software update,” Le explained.

In May, the company unveiled plans to go public in the U.S. through a merger with special purpose acquisition company Black Spade Acquisition Co.

— CNBC’s Penny Chen contributed to this report.