VinFast and the Tamil Nadu state government have announced a Memorandum of Understanding (MoU) to invest US$ 2 billion to manufacture and export vehicles from India.
According to a VinFast statement, the company and the Tamil Nadu State Government will work toward a total investment of up to US$ 2 billion, with a US$ 500 million commitment for the first phase of the project, which will last five years from the start date.
This is a big step forward in VinFast’s worldwide expansion, since it allows the brand to enter the world’s third-largest vehicle market. “The plan to expand into India seeks to capitalize on growth opportunities in the world’s most populous country and rapidly expanding EV market.” This endeavor is an important aspect of VinFast’s goal to create a strong presence in major countries and develop its supply chain in preparation for global expansion,” the business said in a statement.
The establishment of VinFast’s integrated electric vehicle facility in Tamil Nadu is expected to generate approximately 3,000 to 3,500 employment opportunities locally.
Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global said, “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 but will also help accelerate the green energy transition in India and the region.”
TRB Rajaa, Minister of Industries Investment Promotions and Commerce 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. Possessing robust capabilities and an unwavering commitment to a sustainable future, I believe that VinFast will emerge as a reliable economic partner and a substantial contributor to Tamil Nadu’s long-term development.”
Considering the tangible economic and social benefits that are engendered due to the establishment of the project, the Government of Tamil Nadu has committed to providing cleared land for the manufacturing facilities, uninterrupted power supply, and 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, while also strengthening the Comprehensive Strategic Partnership between Vietnam and India.