January 2024 \ Business & Investment \ Business and Governance

New Delhi/Chennai: Vietnam’s leading electric vehicle (EV) manufacturer VinFast and the Tamil Nadu state government in early January announced a partnership to build a $2 billion EV facility in the country, 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 EV 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 said in the statement that it remains dedicated to fostering gender equality and offering career advancement opportunities for the community.

This move indicates a significant step in VinFast’s expansion into the world’s third-largest vehicle market, which is also waiting for Elon Musk-run Tesla to enter the country. “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 CEO of Sales and Marketing, VinFast Global.

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. Construction of the plant is anticipated to begin in 2024. The project will also pave the way for green transportation development, targeting 30 percent of newly registered private cars to be electric.

“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 Thallikotai Raju Balu Raja, State Minister of Industries.

In addition to building the manufacturing facilities in Tamil Nadu, VinFast also has intentions to inaugurate a nationwide dealership network. Established in 2017, VinFast owns a state-of-the-art automotive manufacturing complex with globally leading scalability that boasts up to 90 percent automation in Hai Phong, Vietnam.