Vietnam’s new automaker VinFast, under Vingroup, said on Tuesday it will invest $2 billion in building its first US factory in North Carolina. The factory is set to sit on a 1,976-acre land with more investments to follow in the future. VinFast was founded in 2017 and is a global producer of premium automobiles headquartered in Hanoi, Vietnam. 

Upon completion in 2024, the factory is expected to produce a capacity of 150,000 vehicles annually. According to the company, the plant will have 3 main areas: electric cars and buses production and assembly, EV batteries production and ancillary industries for suppliers. Phase 1 construction is set to begin later this year after necessary permits are granted.

“North Carolina is quickly becoming the center of our country’s emerging, clean energy economy,” said North Carolina Governor Roy Cooper. “VinFast’s transformative project will bring many good jobs to our state, along with a healthier environment as more electric vehicles take to the road to help us reduce greenhouse gas emissions.”

U.S. President Joe Biden said the VinFast investment, which will create more than 7,000 jobs, is “the latest example of my economic strategy at work.”

Vinfast is joining other automakers, both small and large, in transitioning to EV manufacturing in a bid to cut down non-renewable energy resource dependency. Some of the renowned automakers making similar moves are Volvo Cars and Aston Martin

Since becoming a fully-fledged domestic car manufacturer in 2019, the company has seen rapid growth in recent times. VinFast developed its first three car models in just 21 months. The company is expecting to enhance its sales in the US although supply chain disruptions among other problems pose a huge challenge. Last year November Amazon-backed EV maker, Rivian, curtailed production due to such challenges. 

In January, The company said it was looking to establish a plant in Germany to produce electric cars and buses which the CEO, Le Thi Thu Thuy, termed “a milestone in VinFast’s European strategy.”