Vietnam's VinFast to build $2 billion global EV manufacturing hub in TN
The establishment of integrated electric vehicle facility is anticipated to generate approximately 3,000 to 3,500 employment opportunities
VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government for a total investment of up to $2 billion, with an intended commitment of $500 million for the first phase of the project, spanning five years from the commencement date.
The establishment of VinFast's integrated electric vehicle facility in Tamil Nadu is anticipated to generate approximately 3,000 to 3,500 employment opportunities locally. Situated in Thoothukudi, the VinFast’s Tamil Nadu project aims to evolve into a first-class electric vehicle production hub in the region, with an annual capacity of up to 1,50,000 units. 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.
Green transportation
Besides the economic benefits, the project will also pave the way for green transportation development, targeting 30% of newly registered private cars to be electric. This aligns with the state government's initiatives to minimise carbon emissions in the transportation sector.
This move indicates a significant step in VinFast's expansion into the world's third-largest vehicle market. The plan to expand into India aims to seize growth opportunities in the world's most populous nation and rapidly expanding EV 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.
Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global, said, “The MoU demonstrates VinFast's strong commitment to the 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.”
Massive investment
Tamil Nadu Industries Minister TRB Rajaa said, “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.”
It is said that VinFast's green transportation development project is its third manufacturing project and the largest investment in Tamil Nadu's history. “Beating expectations and speculations, @VinFastofficial will be setting up both its EV car and battery manufacturing plant in Thoothukudi,” tweeted the minister.