VinFast, Vietnam's prominent electric vehicle (EV) manufacturer, and the Tamil Nadu State Government announced a Memorandum of Understanding (MoU) on Saturday, signaling a joint investment of around $2 billion. The initial commitment for the first phase of the project is set at $500 million over five years. The project, named VinFast Tamil Nadu, is situated in Thoothukudi and aims to become a leading EV production hub in the region, with an annual capacity of up to 150,000 units.
This expansion into India is strategically aligned with VinFast's goal of tapping into growth opportunities in the rapidly expanding EV market in the world's most populous nation. The project underscores VinFast's broader strategy of establishing a robust presence in key markets and fortifying its global supply chain.
The integrated EV facility in Tamil Nadu is anticipated to generate 3,000 to 3,500 employment opportunities locally, emphasizing VinFast's commitment to economic growth, skills development, and gender equality in the community. Construction of the plant is expected to commence in 2024, contributing to economic growth in Tamil Nadu and aligning with the state government's initiatives to reduce carbon emissions in the transportation sector.
Tran Mai Hoa, Deputy Chief Executive Officer of Sales and Marketing at VinFast Global, expressed the company's commitment to sustainable development and the vision of a zero-emission transportation future. TRB Rajaa, Minister of Industries of the Government of Tamil Nadu, highlighted the significance of EV manufacturing companies as economic drivers and accelerators for the state's green vision.
The VinFast project in Tamil Nadu is not only the company's third manufacturing project but also marks the largest investment in the state's history. In support of the project, the Tamil Nadu government commits to providing cleared land, uninterrupted power supply, and other infrastructure support. Both parties also plan to collaborate on opportunities for charging stations, aligning with the vision of a clean mobility future.
This investment decision not only drives mutual economic growth but also strengthens the Comprehensive Strategic Partnership between Vietnam and India. As part of its expansion strategy, VinFast also intends to establish a nationwide dealership network to enhance brand presence and connect with customers across the country.