Vietnam’s leading electric vehicle (EV) manufacturer VinFast has signed an MoU with the Tamil Nadu State government with an investment of up to $2 billion (Rs 16,662 crore), with an intended commitment of $500 million (Rs 4,165 crore) for the first phase of the Project, spanning 5-years from the commencement date.
It was in September 2023, Financial Express Online had reported the company’s plans to enter the India market to explore new growth opportunities.
The company says the plan to expand into India aims to seize growth opportunities in the world’s most populous nation and rapidly expanding EV market. The initiative forms a crucial part of VinFast’s strategy to establish a strong presence in key markets and strengthen its supply chain for global expansion.
The integrated electric vehicle facility in Tamil Nadu is anticipated to generate approximately 3,000 – 3,500 employment opportunities locally.
The factory will come up in Thoothukudi, Tamil Nadu, which will have an annual capacity of up to 150,000 units. The construction of the plant is anticipated to begin in 2024.
Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global said, “The MoU demonstrates VinFast’s strong commitment to the sustainable development and vision of a zero-emission transportation future. We believe that investing in Tamil Nadu will not only bring considerable economic benefits to both parties, but will also help accelerate the green energy transition in India and the region.”
Thallikotai Raju Balu Rajaa, Minister of Industries of the Government of Tamil Nadu, said: “EV manufacturing companies are not only important economic drivers but also powerful accelerators to the State’s green vision. We are delighted that VinFast has chosen to invest in Tamil Nadu to establish its integrated EV facility. Possessing robust capabilities and unwavering commitment to a sustainable future, I believe that VinFast will emerge as a reliable economic partner and substantial contributor to Tamil Nadu’s long-term development.”
It is said that VinFast’s green transportation development project is its third manufacturing project and the largest investment in Tamil Nadu’s history. Additionally, the company and the State will continue to collaborate and discuss opportunities for charging stations to steer toward a clean mobility future.
In addition to building the manufacturing facilities in Tamil Nadu, VinFast says it also has intentions to inaugurate a nationwide dealership network. This approach is to establish a strong brand presence and swiftly connect with customers across the country.
