• VinFast opened its second domestic factory in Ha Tinh with a capacity of 200,000 units.
• The company aims to produce 1 million vehicles annually despite delays in international expansion.
• VinFast's U.S. factory operations are postponed until 2028 due to weaker demand and competition.
• In the first quarter, VinFast reported a net loss of $712.4 million, a decline from previous losses.
• The new factory is expected to help VinFast achieve a delivery target of 200,000 cars by 2025.

Vietnamese electric vehicle manufacturer VinFast began production on Sunday at its second domestic factory in Ha Tinh, aiming to ramp up output of affordable mini urban models amid plans for global expansion. The new facility has an initial annual capacity of 200,000 units, contrasting with the 950,000 units planned for its flagship factory in Haiphong, which is set to be operational by next year, according to Channel News Asia and Reuters.

Backed by Vingroup, Vietnam's largest conglomerate, VinFast has ambitious plans to build production plants in the United States, India, and Indonesia. However, the company is encountering significant hurdles in its global expansion efforts, including declining demand and increased competition, leading to a delay in the operations of its U.S. factory until 2028. Its assembly plant in India is expected to commence operations next month, as noted by The Jakarta Post and Channel News Asia.

"Once operational, the VinFast Ha Tinh factory will contribute to VinFast's goal of producing 1 million vehicles per year to satisfy growing domestic and international demand," stated Nguyen Viet Quang, CEO of Vingroup. The company has set a delivery target of 200,000 cars for 2025, having sold approximately 56,000 units in the first five months, primarily in Vietnam, according to reports from The Jakarta Post and Reuters.

For the first quarter, VinFast reported a net loss of $712.4 million—lower than the previous quarter's loss of $1.3 billion but an increase of 20% compared to the same period last year. Nonetheless, the company's revenue soared by 150% to $656.5 million, showcasing substantial growth in a challenging market landscape, according to The Jakarta Post, Reuters, and Channel News Asia.