North Carolina Construction News staff writer
North Carolina officials have filed a lawsuit against VinFast, alleging the electric vehicle manufacturer failed to meet its obligations tied to a major development project in Chatham County and defaulted on agreements connected to hundreds of millions of dollars in public support.
Attorney General Jeff Jackson filed the suit on behalf of the North Carolina Department of Commerce, stating VinFast “breached its contracts related to a planned electric vehicle and battery manufacturing facility”. As part of the legal action, the state is exercising its contractual right to acquire the project site, a move officials say is intended to protect taxpayer investments and preserve the land for future economic development.
“VinFast agreed to build a factory and create jobs for North Carolinians – it didn’t do either,” Jackson said. “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.”
The dispute stems from a 2022 agreement under which VinFast Manufacturing US, LLC was awarded a Job Development Investment Grant tied to plans for a $3 billion electric vehicle plant expected to create 7,500 jobs in the state. The North Carolina General Assembly also approved $450 million for site preparation and infrastructure, including transportation, water, and sewer improvements.
Under the agreements, VinFast was required to meet construction milestones, open the facility by July 2026, and create 1,750 jobs by the end of 2026. The state also secured the right to reclaim the property if key benchmarks were not met, along with repayment provisions for certain public funds.
“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, adding the lawsuit reflects the state’s commitment to enforcing performance-based incentives while safeguarding public funds. “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.”
VinFast cleared and graded the Chatham County site in 2023 and costs were reimbursed by North Carolina to prepare the land for construction, but the company has since fallen behind on contractual requirements and publicly stated it does not expect the facility to be operational until at least 2028, two years beyond the agreed timeline.
According to the Department of Justice, VinFast was notified in January that it had defaulted on its agreement and that the state intended to enforce its contractual remedies, including acquisition of the site. VinFast has disputed that assessment, arguing it met construction deadlines and maintaining that the project remains viable on a delayed schedule.
The lawsuit marks a significant escalation in a high-profile economic development deal that was once touted as a major win for the state’s growing clean energy and advanced manufacturing sectors.
North Carolina officials emphasized that while the state continues to compete aggressively for investment, it will also enforce performance standards tied to public incentives. The state noted recent economic gains, including tens of billions in announced investments and continued strength in manufacturing employment, as it seeks to reposition the Chatham County site for future development.
A copy of the complaint is available here.