North Carolina Sues VinFast to Reclaim $80M After EV Factory Deal Collapse
State seeks to recover $80 million and reclaim land after Vietnamese automaker abandons promised $4 billion Chatham County EV factory that was to create 7,500 jobs.
RALEIGH, NORTH CAROLINA — North Carolina has filed a lawsuit against Vietnamese automaker VinFast to recover $80 million in taxpayer funds and reclaim land after the company failed to build a promised electric vehicle megafactory in Chatham County.
State Attorney General Jeff Jackson announced Thursday his office filed suit in Wake County Superior Court against VinFast on behalf of the North Carolina Department of Commerce. The lawsuit alleges the company breached its contracts with the state after abandoning the $4 billion project that was supposed to bring 7,500 jobs to the rural area.
“VinFast agreed to build a factory and create jobs for North Carolinians — it didn’t do either,” Jackson said in a statement. “When North Carolina makes a deal, we build in protection for taxpayers. VinFast broke the deal, so we’re using that protection to find a project for this site that will create jobs.”
Ambitious Project Falls Apart
VinFast announced the megafactory project in March 2022, with Le Thi Thu Thuy, Vingroup Vice Chair and VinFast Global CEO, speaking at the official announcement in downtown Raleigh. The company promised to produce electric vehicles and batteries at the sprawling Chatham County site.
North Carolina offered an extensive economic development package to secure the deal, including half a billion dollars in state job incentives, approximately $400 million in local incentives and property tax breaks, plus new roads, free land and training programs.
The factory was scheduled to be under construction by 2024 and operational by 2026. However, according to the lawsuit filing, the Moncure site has been largely abandoned since the end of 2024.
Construction Never Materialized
VinFast has not maintained a construction contract since the end of 2024, according to the filing. The building and environmental permits the company had obtained have expired and were not renewed.
The lawsuit comes as Reuters reported Thursday that VinFast is planning to exit manufacturing entirely and is selling its two main factories in Vietnam. VinFast officials did not immediately respond to requests for comment.
The failed project represents a significant economic development disappointment in recent North Carolina history. The state had promoted the factory as a “transformative project” that would establish North Carolina as a major player in the electric vehicle industry.
Jackson’s office is seeking to recover not only the $80 million already provided to VinFast but also to reclaim the land designated for the project. The attorney general emphasized the state built protections into the agreement specifically to safeguard taxpayer investments in case the project failed to materialize.
