CHENNAI: VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, will be investing US $2 billion over five years to set up the company’s integrated EV facility in Thoothukudi, which will generate 3,000 to 3,500 jobs. An MoU to this effect was announced on Saturday. This will be one of the largest investments in Tamil Nadu in the state’s history.
The VinFast Tamil Nadu iniative is the company’s third manufacturing project. Its goal is to evolve into a first-class EV production hub in the region, with an annual capacity of up to 1,50,000 units. Construction of the plant is anticipated to begin this year.
A statement from VinFast on Saturday said the project is set to lay a strong foundation for economic growth in TN and India as a whole. “VinFast and the TN government will work toward a total investment of up to US $2 billion, with an intended commitment of US $500 million for the first phase of the project, spanning five years from the commencement date. This move indicates a significant step in VinFast’s expansion into the world’s third-largest vehicle market,” the statement said.The company’s move to expand into India is aimed at seizing growth opportunities in the world’s most populous nation and its 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, the release said. The company also plans to inaugurate a nationwide dealership network.
Industries Minister TRB Rajaa, who played a key role in facilitating the deal on the direction of CM Stalin, said the government is delighted that VinFast decided to invest in TN. “Possessing robust capabilities and unwavering commitment to a sustainable future, I believe VinFast will emerge as a reliable economic partner and substantial contributor to TN’s long-term development,” he said.
In addition to creating jobs and improving the skills of the local workforce, VinFast has said it wants to foster gender equality and offer career advancement opportunities for the community. Besides the economic benefits, the project will 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, the statement said. For its part, the state government has committed to providing cleared land for manufacturing facilities, uninterrupted power supply, and other infrastructure support on a best-effort basis.
The investment also strengthens the Comprehensive Strategic Partnership between Vietnam and India. Tran Mai Hoa, deputy chief executive officer of Sales and Marketing at VinFast Global said, “We believe that investing in TN will not only bring considerable economic benefits to both parties, but will also help accelerate the green energy transition in India and the region.”