Chatham tells VinFast it must name contractors before work can resume at NC factory site

Eleven months after ceremonially breaking ground on its promised 7,500-worker factory in North Carolina, the Vietnamese electric vehicle maker VinFast says it’s identifying contractors before construction begins at the Chatham County site.

“We need time to officially select subcontractors due to paperwork processing and will provide the information to the county as soon as possible,” a company spokesperson told The News & Observer in an email Thursday.

VinFast has been at this stage before; last July, the carmaker received a county permit to construct a 995,000-square-foot general assembly building on the site 30 miles southwest of downtown Raleigh. The general contractor VinFast listed on this original permit was the Chicago-based developer Clayco.

But in December, VinFast sent Chatham revised plans for a general assembly building with a different layout and smaller footprint of around 800,000 square feet. The company said it adjusted the dimensions to “more precisely” meet its design requirements.

This revision restarted the permitting process. VinFast did not submit its final revised plans until April, and Chatham approved the latest design on May 30. Two weeks later, the county also greenlit VinFast’s plans for an 850,000-square-foot body shop.

Before releasing these permits however, Chatham officials must know who will do the construction.

“The permits will be issued once we receive the contractors information,” Chatham County spokesperson Kara Lusk said in an email.

On Thursday, VinFast said Clayco remains the project’s lead contractor.

“They have been seeking out a number of subcontractors, including plumbing and electrical contractors, and are working with VinFast to officially select subcontractors,” the carmaker said.

Clayco has not answered multiple emails from the N&O asking for confirmation that it is the main contractor.

VinFast commitment to NC questioned

For now, the 1,765-acre site in North Carolina looks much as it did in late July 2023 when Gov. Roy Cooper and other state leaders joined VinFast executives in Chatham to kickoff construction. Aerial photos taken this spring showed no clear signs of vertical development.

VinFast announced the project in March 2022, after North Carolina and the county offered combined incentives of $1.25 billion, including more than $300 million in payroll tax benefits if the company meets hiring and investment targets. Under its state job development investment grant, VinFast pledged to create at least 1,997 jobs by the end of 2024, but the company last month said even opening in 2025 may no longer be realistic.

In a May 29 email, a VinFast spokesperson said the company “is conducting a thorough review and evaluation of all aspects of the construction process for our North Carolina factory.”

Two years ago, VinFast pledged to invest $4 billion to construct assembly and battery plants in Chatham. If realized, it will be the first major auto production facility in state history. But since committing to North Carolina, VinFast has lost several billion dollars, and the 7-year-old company has struggled through negative initial reviews and paltry North American sales for its inaugural SUV model, the VF8.

In a recent interview with Bloomberg, VinFast chairman Pham Nhat Vuong said he will invest in his electric vehicle company “until I run out of money.” Vuong is a billionaire and Vietnam’s wealthiest person.

Doubt exists around how North Carolina fits into VinFast’s future. Over the past 12 months, the carmaker has mentioned the Chatham site less frequently in earnings calls while highlighting new initiatives in Asia. In February, VinFast began constructing its first factory in India, and the company aims to start making cars there next year.

In May, Cooper spokesperson Jordan Monaghan told the N&O the state continues “to work with VinFast on its plans to create thousands of jobs in Chatham County. Company officials have acknowledged navigating hurdles currently impacting global markets but have emphasized their long-term commitment to this project.”

Earlier this year, VinFast introduced a new model concept, a mini electric SUV called VF3, which the company says will cost less than $10,000. The company says the VF3 is being designed to appeal to Asian markets.

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