VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, will set up an electric vehicle plant in the coastal town of Thoothukudi in southern Tamil Nadu with a total investment of $2 billion. The announcement comes on the eve of the two-day Tamil Nadu Global Investors Meet to be held in Chennai on Sunday and Monday.
VinFast and the State Government will work toward a total investment of up to $2 billion, with an intended commitment of $500 million for the first phase of the project, spanning five years from the commencement date. This move indicates a significant step in VinFast’s expansion into the world’s third-largest vehicle market, says a company press release.
Construction of the plant is likely to begin in 2024. The project aims to evolve into an electric vehicle production hub in the region, with an annual capacity of up to 150,000 units, the release added.
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Besides the economic benefits, the project will also pave way for green transportation development, targeting 30 per cent of newly registered private cars to be electric. This aligns with the State government’s efforts to minimise carbon emissions in the transportation sector.
VinFast Factory
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.”
Tamil Nadu’s Industries Minister TRB Rajaa said: “EV manufacturing companies are not only important economic drivers but also powerful accelerators to the State’s green vision. I believe that VinFast will emerge as a reliable economic partner and substantial contributor to Tamil Nadu’s long-term development.”
Battery Factory
VinFast’s green transportation development project is its third manufacturing project and the largest investment in Tamil Nadu’s history. The State government also commits 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, the release said.