Its move comes amid a price war in the EV market and the rise in China-made EVs, among other factors. Analysts say the pivot is financially prudent
[HO CHI MINH CITY] VINFAST’s revised plans to delay its US factory launch by three years and to expedite the opening of its two Asian facilities next year could optimise capital expenditure as the Vietnam-based automotive company navigates the tough market conditions in the US, say analysts.
BMI’s senior automobiles analyst Joshua Cobb, for example, said: “While the delay in VinFast’s US plant will slow its entry into the North American market, it is for the best. It will buy some time and improve its ability to weather the ongoing EV market conditions.”
He remarked that the carmaker had stretched its resources too thinly with its hasty plans to set up three plants abroad before ironing out its production and software woes.
