Vietnamese EV maker VinFast signs MoU with Tamil Nadu to invest US$ 2 billion, plant construction to begin in 2024
VinFast's integrated EV plant in Thoothukudi, Tamil Nadu will have an annual manufacturing capacity of up to 150,000 EVs; plant construction is slated to begin this year.
VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, and the Tamil Nadu state government have today announced a Memorandum of Understanding (MoU) to invest US$ 2 billion to manufacture and export vehicles from India.
VinFast and the Tamil Nadu State Government will work toward a total investment of up to US$ 2 billion, with an intended commitment of US$ 500 million for the first phase of the project, spanning five years from the commencement date, said the statement from VinFast.
This move is a significant step in VinFast’s global expansion, which offers the brand an entry into the world’s third-largest car market. “The plan to expand into India aims to seize growth opportunities in the world’s most populous nation and rapidly expanding EV market. This 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,” added the statement from the company.
Dr TRB Rajaa, Minister of Industries Investment Promotions and Commerce of the Government of Tamil Nadu, with the VinFast top management.
The establishment of VinFast’s integrated electric vehicle facility in Tamil Nadu is expected to generate approximately 3,000 to 3,500 employment opportunities locally.
Situated in Thoothukudi, the VinFast-Tamil Nadu project aims to evolve into an electric vehicle production hub in the region, with an annual manufacturing capacity of up to 150,000 units.
VinFast’s integrated EV plant in Thoothukudi, Tamil Nadu will have a manufacturing capacity of up to 150,000 EVs per annum.
The construction of the plant is expected to begin in 2024. This project is set to lay a strong foundation for economic growth in Tamil Nadu and India as a whole, claims the company.
In addition to building the manufacturing facilities in Tamil Nadu, VinFast also intends to inaugurate a nationwide dealership network. This is to establish a strong brand presence and swiftly connect with customers across the country.
Besides the economic benefits, the project will also pave the way for a green transportation development, targeting 30 percent of newly registered private cars to be electric. This aligns with the state government's initiatives to minimise carbon emissions in the transportation sector.
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.”
Dr TRB Rajaa, Minister of Industries Investment Promotions and Commerce 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 an unwavering commitment to a sustainable future, I believe that VinFast will emerge as a reliable economic partner and a substantial contributor to Tamil Nadu’s long-term development.”
VinFast’s green transportation development project is its third manufacturing project and the largest investment in Tamil Nadu's history, the press statement noted.
Considering the tangible economic and social benefits that are engendered due to the establishment of the project, the Government of Tamil Nadu has committed to providing cleared land for the manufacturing facilities, uninterrupted power supply, and other infrastructure support on a best-effort basis.
Additionally, both parties will continue to collaborate and discuss opportunities for charging stations to steer toward a clean mobility future.
This investment decision in Tamil Nadu leads to mutual economic growth for both VinFast and the state, while also strengthening the Comprehensive Strategic Partnership between Vietnam and India.
VinFast – a member of Vingroup – envisions driving the advancement of the global smart electric vehicle revolution. Established in 2017, VinFast owns a state-of-the-art automotive manufacturing complex with globally leading scalability that boasts up to 90 percent automation in Hai Phong, Vietnam.
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