VinFast starts construction of EV factory in North Carolina, US

VinFast’s factory project is the first of its kind in North Carolina, and is said to be the biggest-ever economic development project in the state.
(07.29) VinFast CEO Le Thi Thu Thuy, left, and Gov. Roy Cooper participate in a a groundbreaking ceremony Friday, July 28, 2003, at the future site of a VinFast plant, an electric vehicle manufacturer, in Moncure, N.C. (Source: AP)
VinFast CEO Le Thi Thu Thuy, left, and Gov. Roy Cooper participated in a a groundbreaking ceremony on Friday, July 28, 2023, at the future site of a VinFast plant, an electric vehicle manufacturer, in Moncure, N.C. (Source: AP)

Vietnamese auto maker VinFast on July 28 held a groundbreaking ceremony of its electric vehicle factory in North Carolina, marking an important step in the company's strategy to expand its market, develop its global electric vehicle brand and become self-sufficient in its supply in North America.

The factory has a total investment of 2 billion USD in its first phase, covering an area of 733 ha. In the first phase, the factory will focus on producing electric vehicle models VF 7, VF 8 and VF 9 to meet demand with an expected capacity of 150,000 vehicles per year. Regarding components for production, priority will be given for suppliers from the US, Viet Nam and some countries in the region.

Speaking at groundbreaking ceremony, Vinfast CEO Le Thi Thu Thuy said that the manufacturing facility in North Carolina is one of its key projects. The factory will be VinFast's primary supplier of electric vehicles to the North American market, allowing the maker to optimize production and business activities.

VinFast hopes the construction of the factory will contribute to advancing the clean energy economy in the US and help to support North Carolina’s green mobility strategy, she said. The factory is expected to start production in 2025.

Last year, VinFast was awarded a 1.2 billion USD incentive package from the State of North Carolina for this project, along with critical financial support from the City of Sanford, Chatham County and the Golden Leaf Foundation.

Also on July 28, VinFast Auto Pte. Ltd. and Black Spade Acquisition Co (NYSE: BSAQ) announced that the US Securities and Exchange Commission has declared effective the registration statement on Form F-4 of VinFast in connection with its proposed business combination with Black Spade. Black Spade has scheduled the Extraordinary General Meeting of Shareholders (EGM) to approve the proposed business combination with VinFast on August 10, 2023.

The business combination values VinFast at an enterprise value of 27 billion USD and an equity value of 23 billion USD. The transaction is expected to close followed by the listing of VinFast in August 2023, subject to shareholder approvals and other customary closing conditions.

Mr. Dennis Tam, Chairman and Co-CEO, Black Spade Acquisition Co, said that the declaration of the SEC effectiveness is a significant step towards the successful completion of the merge between Black Spade and VinFast.

He said they have diligently sought out a partner that aligns with their vision, and they are confident that this merger will position them for long-term success.

VinFast, a member of Vingroup Jsc, was founded in 2017. It manufactures and exports a portfolio of e-SUVs, e-scooters and e-buses across Viet Nam, North America, and soon, Europe. The company operates a state-of-the-art automotive manufacturing complex in Hai Phong that boasts up to 90% manufacturing automation and an annual capacity of producing up to 300,000 units/year in phase 1.

Black Spade, listed on the NYSE American, was founded by Black Spade Capital, which runs a global portfolio consisting of a wide spectrum of cross-border investments, and consistently seeks to add new investment projects and opportunities to its portfolio./.

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(source: VNA)