Vietnam’s EV maker VinFast is on track to begin production in the U.S. in 2024

Vietnamese electrical car maker VinFast informed CNBC it’s on track to begin production in the U.S. by 2024 although the business is cutting its headcount in North America.

Vietnam’s very first domestic car manufacturer formerly revealed strategies to go public in the U.S.

Just today, VinFast– the vehicle arm of Vietnam’s most significant corporation Vingroup– revealed it will be cutting tasks in the U.S. in a restructuring workout that will combine its operations throughout the U.S. and Canada.

“After last year’s observation, we see a lot of similarity in the two markets and consolidating the two markets will allow us to be stronger and more agile,” stated Le Thi Thu Thuy, VinFast CEO, in an interview with CNBC’s J.P. Ong on Friday.

The news about the task cuts begin the heels of a Reuters report onFeb 3 that VinFast will be postponing shipments to its very first clients in the U.S.

VinFast delivered its very first batch of cars and trucks to the U.S. in November, that included 999 VF eights. It had strategies to provide them by the end of December however has actually given that postponed deliveries to February.

Le informed CNBC on Friday they have about 12,000 pre-orders in the U.S.

The car manufacturer has actually been increase its U.S. growth to handle American car manufacturers such as Tesla and revealed it will be establishing a production plant in North Carolina to produce EVs.

Le stated the layoffs will not impact the prepared timeline for production to begin at its very first North American factory.

“We are in the final stages of getting a permit to test the construction but the land has already been cleared. The state has already worked on the infrastructure for the land as well,” she informed CNBC.

“We still plan to start the trial production in 2024 as originally planned,” Le stated. The yearly production capability of the plant is 150,000 electrical lorries, according to the business’s release.

The next markets VinFast prepares to target will remain in Europe, particularly Germany, France and the Netherlands, stated the CEO.

However, VinFast lorries do not presently get approved for the $7,500 tax credit in the U.S. since they are not integrated in the nation, however are integrated inVietnam Prices for the 2023 VinFast VF 8 design start from $40,700

“We immediately accelerated our plan for the North Carolina plant. Luckily, we had already signed that agreement before the Inflation Reduction Act,” Le stated.

“We didn’t see it coming however we constantly [planned] to have a plant in the U.S. so the individual retirement account increased our production ability in the U.S. to ensure that our clients will have the ability to have access to electrical lorries at an affordable rates.”

” I think that in the long run [we are] going to focus the production of electrical lorries along with the crucial elements of electrical lorries in the U.S.,” Le included.

VinFast applied for a going public in the U.S. onDec 6. They have actually not divulged the number nor cost of the shares to be traded, according to its prospectus. It is likewise not understood when they precisely prepare to list.

“We have been watching the intensity of the market and I think this year, the market has been a little bit better. We are ready but we need the market to be more cooperative for us to make the IPO happen,” stated Le.

When inquired about when the IPO is anticipated to take place, she stated: “When we are ready to talk more about it, we will be happy to share more.”