VinFast, the Vietnamese electric vehicle maker, is defending itself in three separate legal fights: a North Carolina state lawsuit seeking to reclaim a 1,765-acre factory site in Chatham County and up to $80 million in public money, a federal securities fraud class action in New York brought by investors, and a proposed consumer class action in California over an alleged charging defect in the VF 8 SUV. Federal safety regulators have also pushed the company into two vehicle recalls. Here is what each case involves and where it stands.
North Carolina’s Suit Over the Chatham County Factory
Attorney General Jeff Jackson filed a 191-page complaint against VinFast Manufacturing US, LLC in Wake County Superior Court on May 21, 2026, on behalf of the North Carolina Department of Commerce.1WUNC. NC Sues VinFast in Effort to Regain Control of Chatham County Megasite The state alleges VinFast breached its 2022 development agreements by abandoning work on the site for more than a year starting in December 2024, failing to begin vertical construction by a January 1, 2024 deadline, and falling far short of its promise to create 1,750 jobs by the end of 2026.2NC DOJ. North Carolina Sues VinFast to Acquire Shovel-Ready Manufacturing Site Four years after the initial announcement, no building had gone up on the property.3News & Observer. VinFast Chatham County Factory Status
The state is asking the court for two things. First, ownership of the site for $0 under a special purchasing agreement that allowed a buyback if VinFast missed key milestones. Second, repayment of up to $80.1 million in public money VinFast had already drawn for site preparation.4News & Observer. NC Lawsuit Seeks Chatham County Site and Clawback The complaint also cites non-functional contact emails and an unpaid annual air quality permit fee as evidence of the company’s disengagement.5News & Observer. NC Sues VinFast Over Chatham County Site
What Was Promised, and What Broke
VinFast announced the plant in March 2022 under then-Governor Roy Cooper, promising a $4 billion investment, 7,500 jobs, and production starting in July 2024. The state legislature appropriated $450 million for site preparation, roads, and utilities, and the company qualified for a Job Development Investment Grant worth up to $316.1 million over 32 years.6NC Department of Commerce. Governor Cooper Announces VinFast Automotive Selects North Carolina Chatham County added up to $400 million more.7Carolina Journal. Questions Remain Over VinFast Plant Delay Total state and local pledges exceeded $1.2 billion, all tied to hiring and investment benchmarks.8Axios Raleigh. North Carolina Sues VinFast to Take Back Control of Chatham County Land
A groundbreaking took place in July 2023, but the project then shrank and slipped. Production was pushed to 2025, then to 2028, and the local hiring target dropped from 7,500 to roughly 1,400.9WRAL. VinFast Chatham County Resume Construction3News & Observer. VinFast Chatham County Factory Status The general contractor, Barnhill, left in December 2024, and work stopped.5News & Observer. NC Sues VinFast Over Chatham County Site
The site development agreement, filed with the SEC, contained the tripwires the state is now pulling. A construction-halt clause allowed North Carolina to claw back site-preparation funds if work stopped for 12 consecutive months before 2032. A separate purchase option let the state buy back the land for nothing if VinFast failed to begin manufacturing by July 1, 2026, or to employ 1,750 people by year’s end. Vertical construction was required to begin by January 1, 2024, with an 18-month cure period that state officials say had lapsed by the time they sued.1WUNC. NC Sues VinFast in Effort to Regain Control of Chatham County Megasite VinFast’s parent company, Vingroup, guaranteed the subsidiary’s obligations under the agreement.10SEC. VinFast Site Development Agreement
Notice, Default, and Each Side’s Position
State officials met with VinFast on December 11, 2025, and warned that the lack of progress could trigger the buyback. On January 6, 2026, the Department of Justice formally notified the company that it was in default.1WUNC. NC Sues VinFast in Effort to Regain Control of Chatham County Megasite4News & Observer. NC Lawsuit Seeks Chatham County Site and Clawback2NC DOJ. North Carolina Sues VinFast to Acquire Shovel-Ready Manufacturing Site
Jackson framed the case as a taxpayer protection measure. “VinFast agreed to build a factory and create jobs for North Carolinians — it didn’t do either,” he 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.”11ABC11. AG Jeff Jackson Sues VinFast Governor Josh Stein said the action was “about protecting taxpayers and getting the Chatham County mega-site back on the market to support future good-paying manufacturing jobs.”12NC Newsline. North Carolina Slams Brakes on EV Megafactory Deal
The Securities Fraud Class Action
VinFast Auto Ltd. is also defending a federal securities fraud class action in the U.S. District Court for the Eastern District of New York. The case, Comeau v. VinFast Auto Ltd. (No. 1:24-cv-02750), was filed in 2024 and covers investors who bought VinFast shares or securities traceable to the company’s August 2023 merger with Black Spade Acquisition Co., through which VinFast went public on the Nasdaq.13BusinessWire. VFS Investor Notice
The complaint alleges that VinFast and certain executives violated federal securities laws by overstating the company’s business model, operational capabilities, and financial prospects. Plaintiffs say the company failed to disclose that it lacked sufficient capital to execute its growth strategy and would miss its 2023 delivery targets. VinFast ultimately delivered 34,855 EVs in 2023, short of its 40,000-to-50,000-unit goal.14Nasdaq. Securities Fraud Lawsuit Filed Against VinFast Auto The deadline to seek appointment as lead plaintiff passed in June 2024, and the docket shows the case still in early procedural stages with multiple movants competing for that role.15GovInfo. Comeau v. VinFast Auto Ltd., No. 1:24-cv-02750
Consumer Lawsuits and Recalls Involving the VF 8
The VF 8, VinFast’s only volume model in the United States, has drawn both a consumer class action and federal safety attention.
The Charging Speed Class Action
In June 2025, two California residents filed a proposed class action, Swigi et al. v. VinFast Auto, LLC (No. 2:25-cv-05560), in the U.S. District Court for the Central District of California. They allege the 2024 VF 8 Plus AWD was marketed with standard Level 2 charging capability of 32 amps but suffers from a software defect that shuts the vehicle down at that amperage. Owners say they have to manually lower charging to 19 amps or below, roughly doubling charge time to about 24 hours.16CarComplaints.com. VinFast VF 8 Charging Speed Class Action Lawsuit The complaint brings claims under the Magnuson-Moss Warranty Act, California consumer protection statutes, and common-law breach of warranty and contract theories.17ClassAction.org. Swigi et al. v. VinFast Auto LLC
A judge paused the class action and sent the individual claims to arbitration after VinFast argued the plaintiffs had signed valid arbitration agreements, with a status report on the arbitration set for February 2026.16CarComplaints.com. VinFast VF 8 Charging Speed Class Action Lawsuit
NHTSA Recalls
In September 2024, the National Highway Traffic Safety Administration opened an investigation into the VF 8’s Lane Keep Assist system after owners reported the feature could steer the vehicle outside its travel lane during sweeping curves. The investigation led VinFast to recall 6,314 vehicles from the 2023–2025 model years, with a software update to make it easier for drivers to override the system.18NHTSA. VinFast VF 8 Recall 25V559 Separately, VinFast recalled 4,888 VF 8s over a center airbag that could deploy improperly during a side impact, potentially striking the driver’s arm.19Green Car Reports. VinFast VF 8 Recalled Due to Airbag That May Strike Driver’s Arm No crashes or injuries were reported in connection with either defect.
The Company’s Position and Financial Backdrop
The legal disputes are unfolding while VinFast is losing money heavily and shrinking in the United States. The company reported a $2.85 billion loss for 2025, which included a $236 million impairment charge on the North Carolina site.3News & Observer. VinFast Chatham County Factory Status U.S. sales fell 57% in 2025 to 1,413 vehicles, and fewer than two dozen franchised dealerships remain nationwide.20Automotive World. Despite US Struggles, VinFast Doubled Sales in 2025
In its SEC filings, VinFast has maintained that the North Carolina impairment charge “does not represent a change in our long-term strategic commitment to the U.S. market” and that construction was expected to resume in 2026 with production targeted for 2028.21SEC. VinFast Auto Ltd. Annual Report Whether that timeline survives the state’s suit is now a question for the courts.