HANOI (Reuters) -Vietnamese electric vehicle manufacturer VinFast began production on Sunday at its second domestic factory, aiming to ramp up output of affordable mini urban models as its global expansion plans face delays.

The new facility, located in the central province of Ha Tinh, has an initial annual capacity of 200,000 units and spans 36 hectares (90 acres), the company said in a statement.

By comparison, VinFast's flagship factory in northern Haiphong is designed to reach a capacity of 950,000 units by next year.

VinFast, backed by Vietnam's largest conglomerate Vingroup, has set ambitious goals to establish production plants in international markets, including the United States, India, and Indonesia. However, it has faced hurdles in its global expansion, including weaker demand and stiff competition.

The company announced last year that operations at its U.S. factory would be delayed until 2028. Its India assembly plant is expected to become operational next month.

"Once operational, the VinFast Ha Tinh factory will contribute to VinFast's goal of producing 1 million vehicles per year to meet the increasing demand of domestic and foreign markets," said Nguyen Viet Quang, Vingroup's CEO.

The EV maker has set a delivery target of 200,000 cars for 2025, having sold approximately 56,000 units in the first five months, primarily in its domestic market.

It reported a net loss of $712.4 million for the first quarter, less than the $1.3 billion loss in the previous quarter but 20% more than a year earlier. Revenue jumped 150% to $656.5 million over the same period.