VinFast, a Vietnamese EV manufacturer, will make over US$200 million in capital investments for the first phase and create at least 1,065 new full-time jobs in California, the US.
|A station model. Photo: VinFast|
It was part of the latest announcement of the $150 million in tax credits released by the Governor’s Office of Business and Economic Development (GO-Biz) on November 4.
The GO-Biz stated the funding from the California Competes (CalCompetes) Tax Credit program is projected to create more than 7,600 new, full-time jobs in California. Among the list of selected companies, the Vietnamese automaker received a $20.5 million credit to establish its US headquarters in California.
The funding will bring more than $1.2 billion in new investments across the state over the next five years. CalCompetes plays a pivotal role in helping innovative startups to grow to scale and to choose California for their long-term home.
Dee Dee Myers, Senior Advisor to Governor Newsom and Director of GO-Biz said California Competes is an important program that attracts and retains employers, who in turn create good-paying jobs and economic opportunity for California workers.
“These tax credits will incentivize the creation of thousands of new, quality full-time jobs and much-needed investment across our state,” he added.
Scott Dosick, CalCompetes Deputy Director said VinFast is planning to bring its all-electric SUVs to the US next year - and they wanted to make sure that it chose California for its US headquarters.
The CalCompetes Tax Credit is one of California’s greatest tools for recruiting businesses to California when they are being actively courted by numerous states.
VinFast US CEO Van Anh Nguyen said, being established to bring affordable luxury electric vehicles to the US market, the company is already building a world-class corporate team in the US center of advanced transportation and smart technology.
She added: “We greatly appreciate the support of the State of California as we prepare to launch a brand that will significantly increase EV adoption worldwide and help California and the US meet important environmental goals.”
California Competes Tax Credit was created in 2013 to focus on helping businesses grow and stay in California. GO-Biz evaluates the most competitive applications based on the factors required by statute, including total jobs created, total investment, average wage, economic impact, strategic importance, and more.
In 2018, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to business each year through 2023.