New York, May 22, 2026, 14:03 (EDT)
VinFast Auto shares traded lower Friday afternoon, after North Carolina filed a lawsuit against the Vietnamese EV maker related to its delayed U.S. plant. The move adds pressure on VinFast’s already expensive worldwide expansion. VFS was last seen around $3.55, down from Thursday’s close at $3.61, according to market data.
The timing is in focus because the lawsuit hit just a day after VinFast came under new scrutiny over its plan to sell off its main manufacturing business in Vietnam and move about $7 billion of debt off its balance sheet. Mehdi Jaouadi, an auto analyst and Singapore-based YCP partner, told Reuters the deal made sense strategically and financially but called out “some red flags” around governance. Reuters
The stock lagged even as the wider market picked up. Wall Street’s main averages traded higher Friday ahead of the Memorial Day break, with the Dow up 0.82%, S&P 500 adding 0.65%, and the Nasdaq 0.67% higher at 11:34 a.m. ET, according to Reuters. VinFast’s drop stood out as more about the company than the indexes.
North Carolina is suing VinFast, saying the EV company broke deals with the state tied to a planned plant in Chatham County, according to a suit filed by Attorney General Jeff Jackson for the Commerce Department. “VinFast agreed to build a factory and create jobs for North Carolinians – it didn’t do either,” Jackson said. NCDOJ
The state says VinFast needed to have the plant running by July 2026 and hire 1,750 workers at the site by year-end. WUNC reported the state wants to recover about $80 million it says went to VinFast for grading and site prep after officials claim the work stalled for a year.
VinFast responded, saying it will look at the lawsuit once it gets the formal paperwork. The company told The News & Observer that it already signed contracts with its contractors and construction is still set to start soon, on its planned timeline.
Legal disputes are hitting as VinFast pushes a bigger restructuring. In a May 12 filing, VinFast said it would split up some assets at VinFast Trading and Production JSC and shift its Vietnam manufacturing to other groups. The company called the effort a way to get “asset-light,” meaning fewer owned plants and less capital locked into production assets.
VinFast reported in April that global electric vehicle deliveries jumped 61% in the first quarter from a year ago, hitting 58,577 units, boosted by its Limo Green and VF 3. The company said it will release full Q1 results prior to the market’s open on June 8.
VinFast is seeing more competition, not less. The company is moving into Indonesia, India and the Philippines, but Reuters said last month it’s up against higher costs and fiercer competition at home from Chinese EV makers like BYD and Geely.
Investors are picking through the debt-transfer plan just as the North Carolina case threatens to turn into a credibility issue. Third Bridge’s Ollie Coughlin said in March that VinFast’s “high cash burn rate raises questions” on whether it can pay for needed capital spending, even with backing from Vingroup. Capex covers things like factories and equipment. Reuters
U.S. equities had a regular session Friday, but on Monday, May 25, markets will be shut for Memorial Day, according to Nasdaq’s 2026 schedule. Traders now have just Friday afternoon to react to the lawsuit, the restructuring, and the June 8 earnings date ahead of the long holiday.
