VinFast celebrated a key milestone on February 25 with the groundbreaking ceremony for its integrated EV facility in Thoothukudi city, Tamil Nadu, India.
Situated in the State Industries Promotion Corporation of Tamilnadu Ltd (SIPCOT) in the southern state, the facility covers 160 hectares and involves a $500 million investment for the project’s initial phase over five years. It is expected to produce 150,000 vehicles annually and create approximately 3,000 to 5,000 jobs.
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In addition to enhancing collaboration with leading global suppliers, VinFast aims to increase the localization rate, contributing to local economic growth.
T.R.B Rajaa, Minister of Industries, Investment Promotion & Commerce of the Government of Tamil Nadu, noted that VinFast’s entry into the Indian market underscores Tamil Nadu’s industrial policies and its role as a global automotive manufacturing and innovation hub. He highlighted that Tamil Nadu’s vision aligns with VinFast’s growth strategy in India and its commitment to promoting sustainable mobility.
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Rajaa expressed optimism that the project will stimulate local economic growth, providing job opportunities and fostering skills development for Tamil Nadu residents.
India, as the world’s third-largest automobile market, is a key market in VinFast’s global expansion plan. The groundbreaking ceremony follows VinFast and the government of Tamil Nadu signing a Memorandum of Understanding (MoU) on January 6, affirming VinFast’s determination to implement the plan.
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VinFast’s EV production facility in Tamil Nadu is expected to support development targets in India and export goals to countries in South Asia, the Middle East, and Africa. It represents a significant addition to VinFast’s global production ecosystem, which includes an existing factory in Vietnam, a factory under construction in North Carolina (USA) slated for operation in 2025, and a forthcoming factory in Indonesia.
Alongside establishing factories, VinFast plans to establish a dealer network to enhance brand recognition and engage with customers across India.
