The state is claiming the company breached its agreements.
Attorney General Jeff Jackson filed the lawsuit on behalf of the North Carolina Department of Commerce on Thursday.
According to the state, in 2022, to protect taxpayer investments, the Department of Commerce entered into agreements with the company that allowed the state the right to acquire the project site if the company failed to satisfy key requirements.
"VinFast agreed to build a factory and create jobs for North Carolinians - it didn't do either," said Jackson. "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."
Under those agreements, VinFast was required to meet construction benchmarks and have the facility operational by this July and create 1,700 jobs by the end of the year.
The state noted that the company now says it does not expect the facility to be operational until at least 2028, two years beyond its contractual timeline.
"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 Gov. Josh Stein. "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."
ABC11 has reached out to the Vietnamese automaker for comment on the lawsuit, but has not yet heard back.
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