North Carolina has sued Vietnam-based electric vehicle maker VinFast for failing to fulfill commitments to build an EV and battery factory in Chatham County. The state said VinFast abandoned work on the 712-hectare (1,759-acre) site for more than a year, breaching its agreements [1, 2].
VinFast was licensed to construct the plant with pledges to invest over US$3 billion and create 7,500 jobs in North Carolina. The factory was originally scheduled to be operational by July 1, 2026. However, VinFast delayed the launch until 2028, citing market uncertainties and recent changes to US EV policies [1, 2].
North Carolina announced it will exercise its option to purchase the Chatham County land and demands repayment of US$80 million previously allocated to VinFast for site preparation costs. Attorney General Jeff Jackson said, "VinFast has defaulted on its agreements with the State, and VinFast's continued inaction all but guarantees imminent further default" [1, 2].
VinFast responded that it has not received any official legal documentation regarding the lawsuit. The company also stated, "Contracts with contractors have already been signed, and construction activities are expected to commence shortly in accordance with the planned schedule" [1, 2].
The plant was expected to have an annual capacity of 150,000 vehicles, as announced in 2022. Last week, VinFast revealed it would sell its Vietnamese manufacturing business for 13.3 trillion dong (about US$506 million) to investors who will assume approximately US$6.9 billion in debt. Following these announcements and the legal action, shares in Vingroup, VinFast's parent company, fell 3.5% on May 22 [1, 2].
North Carolina's lawsuit was filed on May 21, 2026, after VinFast abandoned work on the site for over a year. The state is moving to reclaim its investment and secure the land, seeking to hold VinFast accountable for its unfulfilled commitments [1, 2].
