Tamil Nadu, India – January 06, 2024, VinFast, Vietnam’s electric vehicle (EV) manufacturer, and the Tamil Nadu State Government announce a landmark partnership in a Memorandum of Understanding (MoU) to charge the development of green transportation in India. VinFast and the State Government will work toward a total investment of up to USD 2 billion. There is an intended commitment of USD 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 plan to expand into India aims to seize growth opportunities in the world’s most populous nation. It also targets the rapidly expanding EV market. This initiative forms a crucial part of VinFast’s strategy to establish a strong presence in key markets. It also aims to 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. They also provide career advancement opportunities for the community.
Situated in Thoothukudi, the VinFast Tamil Nadu project aims to evolve into a first-class electric vehicle production hub in the region. It has an annual capacity of up to 150,000 units. Construction of the plant is anticipated to begin in 2024. This project aims to establish a strong foundation for economic growth in Tamil Nadu. It also aims to contribute to the economic development of India as a whole.
Besides the economic benefits, the project will also pave the way for green transportation development. The goal is to target 30% of newly registered private cars to be electric. This aligns with the state government’s initiatives to minimize carbon emissions in the transportation sector.
Ms. Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global shared: “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. It will also help accelerate the green energy transition in India and the region.”
Dr. TRB Rajaa, Minister of Industries of the Government of Tamil Nadu, 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. I believe that VinFast will emerge as a reliable economic partner and substantial contributor to Tamil Nadu’s long-term development. Possessing robust capabilities and unwavering commitment to a sustainable future.”
VinFast’s green transportation development project is its third manufacturing project and the largest investment in Tamil Nadu’s history. The Government of Tamil Nadu commits to delivering tangible economic and social benefits resulting from the establishment of the project. Additionally, they pledge to offer cleared land for manufacturing facilities and ensure uninterrupted power supply. The government also promises 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. It also strengthens 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 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.
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