$1.2B in Incentives Seal EV Plant Deal

Vingroup Vice Chair & VinFast Global CEO Madam Le Thi Thu Thuy and North Carolina Governor Roy Cooper in the signing ceremony for the MoU

VinFast, the Vietnam-based electric vehicle manufacturer that chose Chatham County, N.C., for its first North American manufacturing plant, has broken a record in the Tar Heel State. The company was on the receiving end of a $1.2 billion incentive package from the State of North Carolina for the development of its $4 billion facility, marking the largest economic incentive package to be awarded in the history of the state.

After a nationwide search with the assistance of JLL’s Washington, D.C., office, VinFast announced in March 2022 that it would make its North American debut just south of Raleigh at Triangle Innovation Point, a sprawling life science, advanced manufacturing and industrial park located roughly 30 miles from Durham’s Research Triangle Park. The plant will span 2,000 acres, the first phase of which will carry a development price tag of $2 billion. North Carolina’s first automotive plant and second electric battery plant will employ some 7,500 workers.

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The incentive package was a group effort that involved contributions not just from the state, but subsidies from county and local government agencies as well. VinFast will receive a $316 million Job Development Investment Grant over a 32-year period, as well as state appropriations totaling $450 million to fund site preparations and road improvements as well as water and sewer infrastructure. Additionally, the manufacturer will receive a $50 million Golden Leaf Foundation grant and will have access to community college training valued at $48 million. Finally, Chatham County will provide $400 million in incentives.

Commitment aftermath

VinFast isn’t just setting a record for incentives in North Carolina; it will become the very first carmaker to set up shop in the state. Plenty of activity has occurred surrounding the company since news of its plans to come to Chatham County. In April 2022, soon after VinFast revealed its impending arrival, FedEx relied on JLL to help orchestrate the signing of a 340,000-square-foot industrial lease to occupy an entire building at TIP West, a development at Triangle Innovation Point.

And there was more activity at Triangle Innovation Point, once known as the Moncure Megasite. While the park has dual rail access, from Class 1 operators CSX and Norfolk Southern, the VinFast site will be served exclusively by CSX. CSX is participating in the design and development of a new approximately $1 million autoramp facility for vehicle loading at the site.

If all goes as planned, construction of the initial phase of VinFast’s manufacturing facility will commence later in the second half of 2022 and production will get underway in 2024.