VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, and the Tamil Nadu State Government announced a Memorandum of Understanding (MoU) on Saturday, through which both players will invest around $2 billion, with an intended commitment of $500 million for the first phase of the project, spanning five years. Situated in Thoothukudi, the VinFast Tamil Nadu project aims to evolve into a first-class electric vehicle production hub in the region, with an annual capacity of up to 150,000 units.
The plan to expand into India aims to seize growth opportunities in the world’s most populous nation and rapidly expanding electric vehicle market. This initiative forms a crucial part of VinFast’s strategy to establish a strong presence in key markets and strengthen its supply chain for global expansion.
The establishment of VinFast’s integrated electric vehicle facility in Tamil Nadu is anticipated to generate approximately 3,000 – 3,500 employment opportunities locally. In addition to creating jobs and improving the skills of the local workforce, VinFast remains dedicated to fostering gender equality and offering career advancement opportunities for the community.
Construction of the plant is anticipated to begin in 2024. This project is set forth to lay a strong foundation for economic growth in Tamil Nadu and India as a whole. Besides the economic benefits, the project will also pave the way for green transportation development, targeting 30 per cent of newly registered private cars to be electric. This aligns with the state government’s initiatives to minimize carbon emissions in the transportation sector.
“The MoU demonstrates VinFast’s strong commitment to 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 Tran Mai Hoa, Deputy Chief Executive Officer of Sales and Marketing, VinFast Global.
“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 TRB Rajaa, Minister of Industries of the Government of Tamil Nadu.
VinFast’s green transportation development project is its third manufacturing project and the largest investment in Tamil Nadu’s history. Considering the tangible economic and social benefits that are engendered due to the establishment of the project, the Government of Tamil Nadu also commits to providing cleared land for the manufacturing facilities, uninterrupted power supply, and other infrastructure support on a best-effort basis. Additionally, both parties will continue to collaborate and discuss opportunities for charging stations to steer toward a clean mobility future.
This investment decision in Tamil Nadu leads to mutual economic growth for both VinFast and the state, while also strengthening the Comprehensive Strategic Partnership between Vietnam and India. In addition to building the manufacturing facilities in Tamil Nadu, VinFast also has intentions to inaugurate a nationwide dealership network. This approach is to establish a strong brand presence and swiftly connect with customers across the country.
As Vietnam’s leading electric vehicle manufacturer with global aspirations, VinFast’s relentless dedication to innovation and research propels the Company towards its goal of being a global leader in the electric vehicle industry and its commitment to a sustainable future for all, it said.
First Published: Jan 06 2024 | 5:48 PM IST