Updated January 6th, 2024 at 20:35 IST
Vinfast to setup $500 mn EV facilities
These facilities are anticipated to create 3,000 to 3,500 job opportunities locally.
EV factories: Vietnamese electric vehicle (EV) manufacturer VinFast takes a significant stride, securing its initial manufacturing setup in the country, worth $500 million.
An agreement signed between VinFast and Tamil Nadu lays the groundwork for a potential investment of up to $2 billion, with an initial commitment of $500 million for the project's first five years.
VinFast has planned to establish the first manufacturing facility in Thoothukudi, Tamil Nadu, primarily focusing on EV battery production.
The collaboration aims to construct EV and battery manufacturing plants, slated to commence operations this year. These facilities are anticipated to create 3,000 to 3,500 job opportunities locally, contributing to the region's economic growth.
Founded in 2017, VinFast has been in the EV market since 2021 and has been actively expanding its EV initiatives globally.
The planned project in Tamil Nadu's capital, Chennai, an established hub for EV manufacturers, holds the potential to evolve into a prominent EV production centre, targeting an annual capacity of around 150,000 vehicles.
While electric vehicles currently make up only around 2 per cent of car sales, the national government has set ambitious targets, aiming for 30 per cent by 2030, intending to entice and encourage more EV manufacturers into the market. The agreement outlines the Tamil Nadu government's commitment to providing necessary land, a consistent power supply, and additional infrastructure support for the manufacturing facilities.
VinFast also disclosed plans for a comprehensive nationwide dealership network as part of its strategic expansion into the market.
(With Reuters inputs)
Published January 6th, 2024 at 20:35 IST