CHENNAI: Vietnamese Electric Vehicle maker VinFast has moved to deepen its presence in India, signing a fresh agreement with the Tamil Nadu government to expand its manufacturing footprint and broaden its product range beyond electric cars.
Under a new memorandum of understanding announced on Thursday, Tamil Nadu will allocate roughly 200 hectares of land adjacent to VinFast’s existing facility in the SIPCOT Industrial Park in Thoothukudi. The parcel — part of the second phase of the group’s planned $2 billion commitment in India — will enable the company to set up dedicated production lines for electric buses, e-scooters and charging equipment, said Industries Minister Dr TRB Rajaa.
"This would add further momentum to the state’s clean-transport push. The government is committed to ensuring favourable conditions throughout the implementation process so that Vinfast thrives in Tamil Nadu and its ecosystem generates jobs for our people,” he noted.
The state government has agreed to support the project by facilitating key permits and connecting the expanded site to utilities, including power, water, internal roads, drainage, and waste-management systems. In return, VinFast’s proposed $500 million investment will qualify for incentives and exemptions under Tamil Nadu’s industrial policy framework.
VinFast, which has been aggressively building an EV ecosystem spanning manufacturing, distribution, charging and battery recycling, is positioning Tamil Nadu as a strategic export and supply-chain hub.
Its current Thoothukudi plant spans about 160 hectares and houses internationally standardised production lines with an initial annual capacity of 50,000 vehicles — a figure expected to scale up to 150,000 once the expansion is completed.
Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, said the enlarged facility would allow the company to “meet a wider range of customer needs”, while boosting localisation and creating new jobs. “We believe Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and support India’s green mobility goals,” he said.