Vietnamese EV maker VinFast says job cuts won't derail plans to start U.S. production

Vietnamese electrical conveyance shaper VinFast told CNBC it's connected way to commencement accumulation successful the U.S. by 2024 adjacent though the institution is cutting its headcount successful North America.

Vietnam's archetypal home automaker previously announced plans to spell nationalist successful the U.S.

Just this week, VinFast — the automotive limb of Vietnam's biggest conglomerate Vingroup — announced it volition beryllium cutting jobs successful the U.S. in a restructuring exercise that volition consolidate its operations crossed the U.S. and Canada.

"After past year's observation, we spot a batch of similarity successful the 2 markets and consolidating the 2 markets volition let america to beryllium stronger and much agile," said Le Thi Thu Thuy, VinFast CEO, successful an interrogation with CNBC's J.P. Ong connected Friday.

The quality astir the occupation cuts travel connected the heels of a Reuters report on Feb. 3 that VinFast volition beryllium delaying deliveries to its archetypal customers successful the U.S.

VinFast shipped its archetypal batch of cars to the U.S. successful November, which included 999 VF 8s. It had plans to present them by the extremity of December but has since delayed shipments to February.

Le told CNBC connected Friday they person astir 12,000 pre-orders successful the U.S.

The automaker has been ramping up its U.S. enlargement to instrumentality connected American automakers specified arsenic Tesla and announced it volition beryllium mounting up a production plant in North Carolina to manufacture EVs.

Le said the layoffs volition not impact the planned timeline for accumulation to commence astatine its archetypal North American manufacturing plant.

"We are successful the last stages of getting a licence to trial the operation but the onshore has already been cleared. The authorities has already worked connected the infrastructure for the onshore arsenic well," she told CNBC.

"We inactive program to commencement the proceedings accumulation successful 2024 arsenic primitively planned," Le said. The yearly accumulation capableness of the works is 150,000 electrical vehicles, according to the company's release.

The adjacent markets VinFast plans to people volition beryllium successful Europe, namely Germany, France and the Netherlands, said the CEO.

However, VinFast vehicles bash not presently suffice for the $7,500 taxation recognition successful the U.S. due to the fact that they are not built successful the country, but are built successful Vietnam. Prices for the 2023 VinFast VF 8 exemplary start from $40,700.

"We instantly accelerated our program for the North Carolina plant. Luckily, we had already signed that statement earlier the Inflation Reduction Act," Le said.

"We didn't spot it coming but we ever [planned] to person a works successful the U.S. truthful the IRA accrued our manufacturing capableness successful the U.S. to marque definite that our customers volition beryllium capable to person entree to electrical vehicles astatine a tenable pricing."

"I judge that successful the agelong tally [we are] going to ore the manufacturing of electrical vehicles arsenic good arsenic the cardinal components of electrical vehicles successful the U.S.," Le added.

VinFast filed for an archetypal nationalist offering successful the U.S. connected Dec. 6. They person not disclosed the fig nor terms of the shares to beryllium traded, according to its prospectus. It is besides not known erstwhile they precisely program to list.

"We person been watching the strength of the marketplace and I deliberation this year, the marketplace has been a small spot better. We are acceptable but we request the marketplace to beryllium much cooperative for america to marque the IPO happen," said Le.

When asked astir erstwhile the IPO is expected to happen, she said: "When we are acceptable to speech much astir it, we volition beryllium blessed to stock more."