VinFast invests in building electric vehicle and battery manufacturing facility in India

On January 6, 2024, VinFast and the Government of Tamil Nadu officially announced their cooperation in an investment Memorandum of Understanding (MoU) to develop green transportation in India. Accordingly, VinFast and the State Government will actively work towards an investment target of up to 2 billion USD. Of which, the investment level of 500 million USD for phase 1 will be implemented over a period of 5 years. The event marks an important turning point for VinFast in its strategy to penetrate the world's third largest automobile market.

The expansion plan to India is aimed at seizing growth opportunities in the world's most populous market and the fastest growing electric vehicle industry. This is part of VinFast's plan to establish a strong presence in key markets, as well as complete the electric vehicle supply chain for its global development strategy.

VinFast invests in building an electric vehicle and battery manufacturing facility in India. (Photo: VF).

VinFast’s electric vehicle and battery manufacturing facility in Tamil Nadu is expected to create around 3,000-3,500 jobs in the local market. Not only contributing to improving labor skills, VinFast is also committed to promoting gender equality and providing career development opportunities for local people.

Located in the port city of Thoothukudi, the project aims to develop into a modern, regional-scale electric vehicle manufacturing hub with a production capacity of up to 150,000 electric vehicles per year. Expected to start construction in 2024, the project will create a solid foundation for economic growth in Tamil Nadu in particular and India in general.

In addition, the project will contribute to promoting green transport development, aiming for 30% of private cars to be electric vehicles - an important goal of the State Government to reduce carbon emissions in the transport sector.

Ms. Tran Mai Hoa, Deputy General Director of Sales and Marketing of VinFast Global, shared: “This MoU demonstrates VinFast’s strong commitment to sustainable development and the vision of a zero-emission transportation future. We believe that investing in Tamil Nadu will not only bring significant economic benefits to both parties but also help promote the green energy transition in India and the region .”

Mr. Thallikotai Raju Balu Rajaa, Minister of Industry, Government of Tamil Nadu, said, “ Electric vehicle manufacturers are not only important economic drivers but also contribute to the green vision of the State. We are delighted that VinFast has chosen to invest in Tamil Nadu to set up its electric vehicle and battery manufacturing facility. With its strong financial resources and strong commitment to a green future, I am confident that VinFast will be a trusted economic partner, contributing to the sustainable development of Tamil Nadu .”

VinFast's green transport development project is the company's third manufacturing facility and also the largest investment in Tamil Nadu's history.

Recognizing the significant contribution to the state’s employment market, economic growth and green vision, the Government of Tamil Nadu has also pledged maximum support to VinFast in terms of land for production, energy supply and manufacturing infrastructure. In addition, the two parties will continue to work to explore opportunities in developing charging infrastructure to jointly promote green mobility in the state.

The decision to invest in Tamil Nadu not only opens up economic benefits for VinFast and the local market, but also further strengthens the Comprehensive Strategic Partnership between Vietnam and India.

In addition to setting up a manufacturing facility in Tamil Nadu, VinFast also aims to establish a nationwide distribution and retail network to build deep connections and quickly reach Indian customers.

VinFast is a pioneering electric vehicle manufacturer in Vietnam with the goal of becoming one of the leading electric vehicle brands in the world. Through continuous research and innovation, VinFast affirms its goal of becoming a global electric vehicle enterprise with a commitment to building a green future for everyone.

Ngoc Vy

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