Chinese electric car 'boss' plans to produce in Vietnam

BYD - China's largest electric vehicle maker - confirmed to Bloomberg that it plans to manufacture in Vietnam for local sale and export to Southeast Asia.

Bloomberg said a BYD spokesperson confirmed the information, but detailed plans have not been disclosed.

Previously, at a meeting with Deputy Prime Minister Tran Hong Ha on May 5, BYD Group Chairman Wang Chuanfu also expressed his desire to build an electric vehicle manufacturing plant in Vietnam. Mr. Wang Chuanfu proposed to be facilitated to complete investment procedures, in order to quickly put the electric vehicle manufacturing and assembly project into operation. BYD also plans to form a chain of supporting industrial enterprises for the electric vehicle project.

Deputy Prime Minister Tran Hong Ha talks with BYD Chairman Wang Chuanfu on May 5. Photo: VGP — Deputy Prime Minister Tran Hong Ha talks with BYD Chairman Wang Chuanfu on May 5. Photo: *VGP*

"The expansion of operations from electronics manufacturing to electric car manufacturing will be a milestone, laying the foundation for new cooperation and investment ideas of BYD Group in Vietnam," said Deputy Prime Minister Tran Hong Ha. Currently, BYD has chosen to invest in a factory specializing in tablet manufacturing in Phu Tho province.

The Deputy Prime Minister also hopes that BYD will create products that are competitive in the international market, targeting markets with high standards, as well as promoting the development of supporting industries in Vietnam.

BYD is China’s largest electric vehicle maker. Earlier this year, three sources told Reuters the company planned to build a factory in Vietnam to make auto parts. The Shenzhen-based company is currently building its first overseas electric vehicle factory in Thailand. Along with Vietnam, it is considering the Philippines and Indonesia for additional factories in Southeast Asia.

Last year, BYD surpassed Tesla to become the company that sold the most electric cars in the world with 1.85 million units compared to 1.31 million units, according to online data platform Statista (headquartered in Hamburg, Germany).

BYD's first-quarter sales of pure electric vehicles (EVs) reached 264,647 units, up 87% year-on-year, accounting for 48% of total sales. Meanwhile, sales of hybrid electric vehicles (PHEVs) reached 283,270 units, up 90% year-on-year, accounting for 52% of total sales. In addition, BYD sold 38,723 EVs overseas last quarter, up 14 times year-on-year.

In April alone, it sold 210,295 vehicles, double the year-ago figure but only slightly higher than the previous month. In addition to selling primarily in China, BYD has expanded overseas in Asia, as well as Europe and Latin America. Exports account for about 6% of its electric vehicle sales.

BYD shares rose more than 2% on Friday morning in Hong Kong after the Chinese government reiterated its commitment to supporting the electric vehicle sector. The company’s shares have risen 25% this year.

Global electric car sales rose about 60% last year, topping 10 million for the first time, even as overall car sales have stagnated. One in seven passenger cars purchased in 2022 will be electric, according to a recent report from the International Energy Agency (IEA). In 2017, just one in 70 cars sold was electric.

Phien An ( according to Bloomberg, VGP )

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