VinFast’s big ambitions in the United States have suffered a serious setback after North Carolina Attorney General Jeff Jackson filed a lawsuit accusing the Vietnamese automaker of breaching its agreement with the state.
The case centers on the state’s claim that VinFast failed to meet key construction obligations for its promised factory in Chatham County, a project once presented as a major step in the company’s American expansion.
State officials are now trying to protect taxpayer spending tied to the project and regain control of the site for future economic development.
They also want to regain control of the huge property where one of the region’s largest new auto plants was supposed to be built.
A Huge Factory Plan That Never Took Shape
When VinFast first announced its American factory, the project looked like the beginning of a major push into the EV market. The company promised a multibillion-dollar investment, a factory covering more than 800,000 square feet, and as many as 7,500 future jobs.
North Carolina lawmakers appropriated about $450 million to support site preparation, transportation improvements, and water and sewer infrastructure connected to the project. At the time, the deal was presented as a major economic win for the state and a sign that VinFast was serious about competing in the U.S. market.
The reality has been very different. After initial grading and early construction work in 2023, progress slowed sharply, while deadlines continued to move further into the future.
Skepticism grew as VinFast struggled to build momentum in America, especially after the weak reception of the VF 8 electric crossover. Criticism of that model’s quality, software, and driving behavior raised questions about whether the company was ready for the aggressive global expansion it had promised.
North Carolina Says VinFast Missed Its Obligations
Under the agreement with the state, VinFast was required to have the facility operational by July 2026 and create about 1,700 to 1,750 jobs by the end of that year.
With the July deadline approaching and no full factory structure completed, North Carolina officials concluded that the project was unlikely to meet its obligations.
Attorney General Jeff Jackson was direct in his public statement. He said VinFast promised jobs and a factory but failed to deliver either one.
According to Jackson, the state is now activating protections in the agreement so it can find another investor capable of developing the location and bringing real jobs to the region.
The Timeline Has Already Slipped
The situation had already escalated in January, when North Carolina formally notified VinFast that it had violated the terms of the agreement. VinFast responded by saying it still planned to build the factory, but with a new target pushed back to 2028.
That answer appears to have done little to restore confidence among local officials. After years of delays, the state now seems unwilling to keep waiting for a project that has produced far less than originally promised.
The lawsuit marks a major blow to VinFast’s image in the United States. A factory in North Carolina was supposed to give the company a stronger local presence, reduce reliance on imports, and help it gain credibility with American buyers.
Instead, the site has become a symbol of how difficult the company’s U.S. expansion has become, even as VinFast has said it still plans to build on the Chatham County property.
A Region Still Built Around Cars
The irony is that the auto industry in this part of North Carolina remains active. Not far from the planned VinFast site, in the city of Sanford, Edelbrock continues to produce its well-known carburetors and performance parts.
That shows the region still has a strong industrial base and real automotive experience.
For now, though, North Carolina officials are trying to move the site toward another future while VinFast continues to face legal and credibility questions over the delayed factory.
This article originally appeared on Autorepublika.com and has been republished with permission by Guessing Headlights. AI-assisted translation was used, followed by human editing and review.