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North Carolina Files Suit to Reclaim Land After VinFast Abandons $4B Chatham County Project

North Carolina filed a lawsuit to reclaim a 2,000-acre Chatham County megasite from VinFast, citing the developer's failure to commence vertical construction or meet job creation milestones.

By Colin Percy · May 22, 2026

North Carolina has initiated legal action against Vietnamese electric vehicle manufacturer VinFast to regain control of a 2,000-acre economic development megasite in Moncure. The state alleges that VinFast failed to meet critical contractual deadlines, including a mandate for vertical construction to begin by January 1, 2024, and requirements to employ 1,750 workers by the end of 2026. While the project was originally intended to be a $4 billion manufacturing hub, the state contends that no structures have risen above ground and that work effectively halted in December 2024 following the termination of agreements with contractors Clayco and Barnhart.

The lawsuit, filed in Wake County Superior Court, seeks to trigger a buy-back option for the land and recover $80 million in state-funded site preparation incentives. According to state officials, VinFast requested a deadline extension in 2024 citing financing difficulties and later proposed a reduced facility footprint covering approximately 236 acres. The state remains skeptical of VinFast’s revised 2028 completion target, arguing that the company has exhausted its contractual cure period and failed to secure the necessary building permits.

Companies mentioned

developer

VinFast

other

Duke Energy

other

North Carolina Department of Commerce

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