VinFast, Vietnams leading 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, with 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 VinFasts expansion into the worlds third-largest vehicle market, Media Out Reach Newswire, informed The Daily Observer through email.
The plan to expand into India aims to seize growth opportunities in the worlds most populous nation and rapidly expanding EV market. This initiative forms a crucial part of VinFasts strategy to establish a strong presence in key markets and strengthen its supply chain for global expansion.
The establishment of VinFasts 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 and offering 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, with an annual capacity of up to 150,000 units. Construction of the plant is anticipated to begin in 2024. This project is set forth to lay a strong foundation for economic growth in Tamil Nadu and India as a whole.
Besides the economic benefits, the project will also pave the way for green transportation development, targeting 30% of newly registered private cars to be electric. This aligns with the state governments 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 VinFasts 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."
Tamil Nadu Industries Minister Thallikotai Raju Balu Rajaa, said: " We are delighted that VinFast has chosen to invest in Tamil Nadu to establish its integrated EV facility."
