RALEIGH, N.C. (WPTF) — The lack of progress at the Vinfast auto production site in Chatham County had led to legal action.
Attorney General Jeff Jackson filed suit on behalf of the North Carolina Department of Commerce against VinFast, alleging that the company breached its agreements with the state for the development of an electric vehicle and battery manufacturing facility in Chatham County. Through the lawsuit, North Carolina is exercising its contractual right to acquire the property, thereby, protecting taxpayer investments while preserving the site for future economic development opportunities.
“VinFast agreed to build a factory and create jobs for North Carolinians – it didn’t do either,” said Attorney General Jeff Jackson in a news release “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.”
“North Carolina will always compete aggressively for jobs and investment, but we also protect taxpayers by requiring the company to hold up its end of the deal,” said Governor Josh Stein. “VinFast has not fulfilled its commitments. Today’s action is about protecting taxpayers and getting the Chatham County mega-site back on the market to support future good-paying manufacturing jobs.”
“North Carolina’s economic development strategy is built on strong partnerships and performance-based agreements that are designed to protect the public interest,” said NC Commerce Secretary Lee Lilley. “While we remain committed to supporting projects and long-term growth, we also have a responsibility to ensure that contractual obligations tied to taxpayer-supported incentives are fulfilled.”
In 2022, the Economic Investment Committee awarded a Job Development Investment Grant (JDIG) to VinFast Manufacturing US, LLC with the goal of creating 7,500 jobs and investing more than $3 billion in an electric vehicle manufacturing facility in Chatham County. The North Carolina General Assembly also appropriated $450 million to support site preparation, transportation improvements, and water and sewer infrastructure associated with the project.
To protect taxpayer investments, the Department of Commerce entered into agreements with the company that required repayment of certain site preparation funds if specified benchmarks were not met and granted the state the right to acquire the project site if the company failed to satisfy key performance requirements. Under those agreements, VinFast was required to meet construction benchmarks, have the facility operational by July 2026, and create 1,750 jobs by the end of 2026.
VinFast cleared and graded the site in 2023, costs that were reimbursed by the state so that it was ready for construction. But since then, VinFast has failed to meet key obligations and performance requirements tied to the project. The company has said publicly that it does not expect the facility to be operational until at least 2028, two years beyond its contractual timeline.
The Department of Justice notified VinFast in January that it had defaulted on its agreement and that the state intended to protect its investment by exercising its right to acquire the site. In response, VinFast argued that it had met its construction deadlines and would have a facility opened on a delayed 2028 timeline. The state’s action seeks to protect taxpayer investments and enforce the commitments tied to the project.