Questions remain over VinFast plant delay as historic church is demolished

Excitement over the promise of North Carolina’s first vehicle manufacturing plant led to great fanfare more than two years ago at the groundbreaking for Vietnamese electric vehicle maker VinFast’s $4 billion EV manufacturing plant in Chatham County.

But now, the only sound that can be heard at the site is that of proverbial crickets.

Little if anything has changed with the site since the company announced in July 2024 that it plans to delay the factory’s opening until 2028.

At that time, then Chatham County Manager Dan LaMontagne told Carolina Journal in an emailed statement that despite the delay, “We are confident that there is no change in VinFast’s scope or vision for the project here in Chatham County.”

Current County Manager Bryan Thompson still concurs with the same viewpoint.

“Chatham County has not been made aware of any change in VinFast’s scope or vision for the project, and we maintain our support of the project,” he told CJ in an emailed statement Monday.

LaMontagne noted last year that the county will only provide economic incentive grants based on performance measured by the creation of eligible jobs.

Using the state’s Transformative Job Development and Investment Grant program, VinFast could get up to $316.1 million in reimbursement from the state over three decades if the company meets hiring goals. The state is spending another $450 million on infrastructure around the site.

The total state appropriation is estimated at $766 million, with Chatham County giving VinFast another $400 million incentive package.

While it does have three dealerships in North Carolina (Apex, High Point, and Charlotte) and seven other states, VinFast’s focus shifted to Asia last year, with a groundbreaking on an EV assembly plant in Indonesia. It has also pivoted to markets in India and the Philippines.

When asked about an update on the Chatham County project, a spokesperson for VinFast told CJ in an emailed statement Monday that the company has a comprehensive development strategy for its markets, with the United States being a key focus.

“VinFast’s expansion in Asia is an important part of our overall growth strategy to promote global transportation electrification,” the VinFast email said. “VinFast is committed to operating and growing its business in the U.S. We continue to sell our VF 8 and VF 9 models in the U.S., while expanding our dealership network. We currently have nearly 30 dealerships across 14 states with plans to continue expansion nationwide.”

VinFast’s plan questioned

However, those familiar with the EV industry and the financial markets still speculate about VinFast’s chances in the United States and Europe.

“VinFast certainly tried, but it’s become clear that it’s not really working,” according to an Insideevs.com article. “The cars the brand sells don’t seem to be up to snuff for European and American markets, while losses have continued to mount. It almost feels as if VinFast is solely continuing onward because of the stubbornness of VinFast’s founder Pham Nhat Vuong, who has put up $2 billion of his own money to help fund the company’s ambitions.”

Bloomberg has reported that VinFast is spending $1.57 for every $1 of profit, which means that VinFast lost $3.2 billion last year. 

In June, the company also opened a second plant in Vietnam, which can produce 200,000 vehicles annually. 

Financial and investing advice company The Motley Fool called the company a “money pit,” echoing Insideevs’ article. It added that in addition to Vuong’s own money, capital from Vuong’s Vingroup, its affiliates, and other external lenders amounted to more than $14 billion that was put into the EV maker.

The Motley Fool also questioned whether VinFast would “shut its doors” and become the next Fisker, which had two failed American EV companies.

The expiration of the $7,500 federal tax credit for electric vehicles on Oct. 1 and the uncertainty surrounding tariffs may also compound the company’s challenges in the United States.

Vinfast’s timeline

VinFast first announced plans to open the North Carolina plant in March 2022, with an opening planned for this month. In March 2023, the company announced that the opening would be delayed until 2025, and now, 2028.

Officials said that 7,500 jobs would be created and 150,000 vehicles per year could be built in Phase 1 of the project.

The company has had its share of ups and downs, with the downs figuring more prominently.

A 995,500-square-foot building was originally planned for the general assembly facility, but in December 2023 the square footage was scaled down to 782,255 square feet.

In April 2024, the company submitted revisions for the building, with a new size of 810,100 square feet. 

The company has lost billions of dollars, sold over half of its vehicles to itself in 2023, been accused of polluting waterways near its Chatham County site, faced safety recalls, and bad reviews.

historic church meets wrecking ball

One thing that has become a certainty is the demolition of Merry Oaks Baptist Church.

The church, which stood on the border between Moncure and New Hill on the corner of Old US 1 and New Elam Church Road since 1888, met with a wrecking ball in June.

Save Historic NC Church, a Facebook page dedicated to the church, has a series of pictures of the demolition.

The church, along with 27 homes and five businesses, had to forfeit their land under eminent domain to make way for a new highway that economic developers say is needed for access in and out of the Moncure site.

In July 2023, VinFast announced in a goodwill gesture that it intended to donate up to three acres of property on the VinFast project site to help save the church from demolition. Church members said at the time they were still deciding whether they would like to relocate the church.

That never happened.

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