Vietnamese electric vehicle (EV) giant VinFast has unveiled plans to establish a cutting-edge integrated EV facility in Tamil Nadu. The company confirmed its commitment to invest up to $2 billion in this ambitious project during an official statement released on Saturday.
In an effort to kickstart this transformative venture, VinFast has earmarked an initial $500 million for the project's first phase, spanning a comprehensive five-year timeline from its commencement.
The pivotal move comes as VinFast prepares to sign a Memorandum of Understanding (MoU) with the Tamil Nadu state government. This landmark agreement will pave the way for the establishment of an EV manufacturing facility in Thoothukudi. The company envisions this hub evolving into a premier electric vehicle production centre with an annual capacity of up to 150,000 units, as reported by ET.
VinFast's strategic investment aligns with its broader ambition to capitalise on India's burgeoning EV market, deemed one of the world's most rapidly expanding sectors. The construction of the facility is slated to commence in 2024, positioning VinFast strategically to seize growth opportunities and establish a robust foothold in key markets worldwide.
The ambitious project is expected to generate between 3,000 to 3,500 employment opportunities within the local community, significantly contributing to employment and skill enhancement.
Tamil Nadu Industries Minister TRB Rajaa expressed enthusiasm about VinFast's decision to invest in Tamil Nadu, highlighting the company's capabilities and commitment to sustainable development. "I believe that VinFast will emerge as a reliable economic partner and substantial contributor to Tamil Nadu’s long-term development," stated Minister Rajaa.
This significant investment by VinFast marks its third manufacturing project and the largest-ever investment in the history of Tamil Nadu. In support of this endeavour, the state government has pledged to provide essential support such as cleared land for manufacturing facilities, uninterrupted power supply, and other necessary infrastructure.