Vietnam's VinFast Ships First 999 Electric Cars To U.S.

Vietnam's electric vehicle maker VinFast said on Friday it had shipped its first batch of 999 cars to the United States, capping a five-year bid to develop an auto production hub in the Southeast Asian country for markets in North America and Europe, Phuong Nguyen and Kevin Krolicki reported for Reuters.

Photo Insert: VinFast expects to be able to ship a second batch of cars to the United States, its first export market, around January.

The first cars are expected to be handed over to customers by the end of December, the company said. VinFast Chief Executive Le Thi Thu Thuy said some of the VF 8 electric SUVs shipped on Friday would be sent to US car subscription service Autonomy but the majority would go to retail buyers who have ordered the car.

Thuy said VinFast expected to be able to ship a second batch of cars to the United States, its first export market, around January.

VinFast is in the process of building an electric vehicle plant in North Carolina that is awaiting final regulatory approval from local officials. Thuy said the company expected to start production at the North Carolina factory from July 2024 and that electric vehicles built there would qualify for incentives under the terms of the Inflation Reduction Act signed by US President Joe Biden.

The Inflation Reduction Act (IRA), as currently written, requires automakers to have 50% of critical minerals used in EV batteries come from North America or U.S. allies by 2024, rising to 80% by the end of 2026.

Major automakers have said those targets are unrealistic and it was not immediately clear how VinFast would meet the sourcing requirements.

"The IRA came as a surprise to all of us but it doesn't really impact our strategy in the US," Thuy told Reuters. "As soon as we start manufacturing cars in the US, our customers will be eligible (for) the tax incentive."

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic