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VinFast To Build Integrated Electric Vehicle Facility In Tamil Nadu, India

January 08, 2024

VinFast, an electric vehicle (EV) manufacturer from Vietnam, and the Tamil Nadu State Government in India have announced a partnership to advance the development of green transportation in India. The Memorandum of Understanding (MoU) between the two parties outlines a total investment of up to USD 2 billion, with an initial commitment of USD 500 million for the first phase of the project, which is expected to span five years. This partnership marks a significant milestone in VinFast’s expansion into India, the world’s third-largest vehicle market.

The initiative is a key part of VinFast’s strategy to establish a strong presence in major markets and enhance its global supply chain. The establishment of VinFast’s integrated EV facility in Tamil Nadu is expected to create approximately 3,000 – 3,500 local jobs.

The VinFast Tamil Nadu project, located in Thoothukudi, aims to become a leading EV production hub in the region, with an annual capacity of up to 150,000 units. Construction of the plant is expected to begin in 2024. The project is set to contribute significantly to economic growth in Tamil Nadu and India.

In addition to economic benefits, the project will also contribute to the development of green transportation, with a target of 30% of newly registered private cars being electric. This aligns with the state government’s initiatives to reduce carbon emissions in the transportation sector.

The project is VinFast’s third manufacturing project and represents the largest investment in Tamil Nadu’s history. The Government of Tamil Nadu has committed to providing cleared land for the manufacturing facilities, uninterrupted power supply, and other infrastructure support. Both parties will continue to collaborate and discuss opportunities for charging stations to promote clean mobility.

VinFast also plans to establish a nationwide dealership network in India to strengthen its brand presence and connect with customers across the country.

Ms. Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global, and Mr. Thallikotai Raju Balu Rajaa, Minister of Industries of the Government of Tamil Nadu, provided statements on the partnership:

“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,” said Ms. Tran Mai Hoa.

“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,” said Mr. Thallikotai Raju Balu Rajaa.