Vietnamese EV startup VinFast has plans to open a new factory in North Carolina, after the state gifted them $1.2 billion!
VinFast announced that it has received a $1.2 billion incentive package from the state of North Carolina to build a new electric car factory in the state, marking the single largest economic incentive package offered in North Carolina’s history, and making VinFast as the first carmaker to be located in North Carolina.
While that kind of spending might seem a bit high for fiscally conservative NC, it’s worth noting that the incentive package comes mostly in the form of tax credits, with the overall goal to accelerate job growth in the state. “North Carolina’s partnership with VinFast to bring good, clean energy jobs to North Carolina took an important step forward today with the signing of the budget, said Roy Cooper, Governor of North Carolina. “Electric vehicles, like the ones VinFast will produce in Chatham County, are a critical component of our strategy to reduce greenhouse gas emissions and build North Carolina into a hub for the clean energy economy.”
The new VinFast facility will be built at Triangle Innovation Point in Chatham County, with a total investment of around $2 billion in phase one. The campus will take up 2,000 acres and encompass two main areas: one for the production and assembly of electric cars and buses and the other for ancillary industries for suppliers. The facility would make 150,000 vehicles per year. Phase one will see construction begin in the second half of 2022, and production should start in July 2024.
For this project, VinFast received financial support from the City of Sanford, Chatham County, and the Golden LEAF Foundation, a North Carolina nonprofit that works to increase economic opportunities in the state’s rural communities. The complete government and nonprofit incentive package includes:
- A Job Development Investment Grant of $316 million over the course of 32 years.
- State appropriation of $450 million to cover site preparations, road improvements, and broader water and sewer infrastructure.
- Community college training estimated at $38 million.
- A Golden LEAF Foundation grant of $50 million.
- Incentives from Chatham County totaling $400 million.
“VinFast applauds North Carolina for their efforts and determination in advancing the state’s clean energy economy and carbon mitigation goals,” said Van Anh Nguyen, CEO of VinFast Manufacturing US. “This investment by the State of North Carolina is the starting point for a future marked by innovation, job creation, and economic growth. Today exemplifies how government and industry can come together to pursue a brighter future.”
VinFast President Shown
SOURCE | IMAGES: VINFAST.