Vietnamese Automaker VinFast To Perform Ground Breaking Ceremony For Integrated EV Factory At Tuticorin Just A Month After MoU With TN Govt

VinFast Auto announced that it will perform the groundbreaking ceremony marking the commencing of the construction of its proposed integrated electric vehicle (EV) manufacturing plant in Thoothukudi City of Tamil Nadu on February 25, 2024.

"The groundbreaking ceremony of the EV manufacturing plant just over a month after the announcement of the MoU with the State Government affirms VinFast's strong determination and roll-out speed in its global expansion plan." the company said.

VinFast envisages Thoothukudi as an EV production hub in the region, with an annual capacity of up to 150,000 vehicles, compared with 250,000 at its main plant in Vietnam.

Earlier last month, the Vietnamese electric vehicle (EV) maker signed an agreement with the Tamil Nadu government to set up its first manufacturing facilities in India as the ambitious company seeks to penetrate the world's third-largest vehicle market.

VinFast and the state government will jointly work towards investing up to US$2 billion in the project, with a commitment of US$500 million for the first five years.

VinFast's integrated EV manufacturing facility in Tamil Nadu will generate about 3,000 to 3,500 local job opportunities.

The state government has committed to providing cleared land for the manufacturing facilities, uninterrupted power supply and other infrastructure support.

The proposed plant in Tamil Nadu is a significant milestone in VinFast's global expansion strategy of venturing into one of the world's fastest-growing major economies and its burgeoning EV market.

Founded in 2017 and making EVs since 2021, VinFast has been pursuing an aggressive expansion plan overseas. The company made its Nasdaq debut in August.

The $500 million manufacturing plant in Thoothukudi will be its third, following existing facilities in northern Vietnam and one in progress in the U.S. state of North Carolina.

Vinfast is part of the sprawling conglomerate VinGroup. In April 2023, VinFast received another US$1.5 billion injection of funds from VinGroup and a US$1 billion personal loan from founder Phan Nhat Vuong.

Vingroup currently makes most of its revenue from real estate development and has recently forayed into retail, health care, education and agriculture.