This is a strategic move by VinFast, the electric vehicle subsidiary of Vingroup, aimed at reducing reliance on imports. The Vietnamese electric vehicle manufacturer, listed on Nasdaq, is targeting an increase in the use of domestically produced components from the current 60% to 80% by 2026.
Robot welding a car frame at the VinFast factory in Hai Phong, Vietnam, 2023
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Increasing localization not only reduces dependency on imported components but also holds the potential to optimize production costs. This strategy aligns with Vietnam’s broader goal of enhancing its position in the global supply chain and maintaining its competitive edge as a leading regional manufacturing hub.
The Management Board of Ha Tinh Economic Zone has approved in principle a project by Vinhomes Ha Tinh Industrial Park Investment Company, a Vingroup subsidiary. The company will construct factories for lease to suppliers or manufacturers of automotive components, fostering the development of supporting industries for the automotive sector.
Investors will contribute 15% of the capital, with the remainder financed through loans from credit institutions, as announced by the management board.
The project, located in the Vung Ang Economic Zone in Ha Tinh—one of the province’s key economic zones—is expected to commence operations in June 2027. This industrial cluster will directly supply the nearby VinFast electric vehicle factory, contributing to the company’s localization efforts.
Earlier this year, VinFast announced its ambition to achieve a production capacity of 1 million electric vehicles by 2030. Currently, the company’s total capacity stands at 550,000 vehicles per year.
The VinFast factory in Ha Tinh, inaugurated in June, spans 360,000 m² with a designed capacity of 200,000 vehicles per year. Previously, the company’s first factory in Hai Phong city had a capacity of 300,000 vehicles.
In addition to its domestic facilities, VinFast is expanding its global manufacturing network. The Vietnamese electric vehicle manufacturer currently operates a factory in India with a designed capacity of 50,000 vehicles per year and plans to establish a cluster of local suppliers nearby. Simultaneously, VinFast is constructing a factory in Indonesia with a similar capacity.
Ha Tinh Province, the location of Vingroup’s latest project, is strategically situated between the capital city of Hanoi and the central metropolis of Da Nang. It serves not only as one of the country’s heavy industrial centers but is also the hometown of billionaire Pham Nhat Vuong, the founder of Vingroup.
In terms of business performance, VinFast delivered 72,167 electric vehicles to global customers in the first half of this year, a 223% increase compared to the same period last year. Throughout 2024, the company delivered 97,399 electric vehicles.
Vu Hao (According to Nikkei Asia)
– 15:38 23/09/2025
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