VinFast Auto (VFS) is facing a lawsuit from North Carolina, which alleges the company breached agreements tied to its planned electric vehicle and battery manufacturing facility in the state.

Attorney General Jeff Jackson filed suit on behalf of the North Carolina seeking to reclaim the project site after the company failed to meet construction and job creation commitments linked to taxpayer-backed incentives.

"VinFast broke the deal, so we're using that protection to find a project for this site that will create jobs," said Jackson.

Governor Josh Stein said the state wants to return the site to the market for future manufacturing projects.

VinFast did not immediately respond to MT Newswires' request for commnet.