VinFast lines up USD 2bn investments in TN; to build an integrated EV facility

NewsDrum Desk
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Chennai, Jan 6 (PTI) Vietnam-based electric vehicle manufacturer VinFast has earmarked investments of USD 2 billion (Rs 16,000 crore) in Tamil Nadu for setting up an electric vehicle car and battery manufacturing facility in southern Tamil Nadu.

To set up the ball rolling on its investment plans, VinFast would sign a memorandum of understanding with the Tamil Nadu government during the Global Investors Meet 2024 scheduled to begin on Sunday.

"VinFast and the state government will work toward a total investment of up to USD 2 billion (Rs 16,000 crore), with an intended commitment of USD 500 million for the first phase of the Tamil Nadu Project, spanning five years from the commencement date. This move indicates a significant step in VinFast's expansion into the world's third-largest vehicle market," a company statement said.

Tamil Nadu Chief Minister M K Stalin said the investment proposal is a giant leap for economic growth in south Tamil Nadu and expressed his gratitude for setting up the base in the state.

"VinFast would set up an EV car and battery manufacturing facility in Tuticorin at an investment of Rs 16,000 crore. This is not just a mere investment. It is a giant leap for economic growth in South Tamil Nadu," he wrote in a social media post.

The proposal by the Vietnamese firm would generate the creation of about 3,500 jobs in the region.

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 1.50 lakh units.

The construction for the production facility is expected to begin this year and the project would lay a strong foundation for economic growth in Tamil Nadu and India as a whole.

"The MoU demonstrates VinFasts' strong commitment to the sustainable development and vision of a zero-emission transportation future," VinFast Global Deputy CEO Sales and Marketing, Tran Mai Hoa said.

"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," she added.

Tamil Nadu and VinFast would continue to collaborate and discuss opportunities for charging stations to steer toward a clean mobility future.

"Fantastic news for the South. Global EV giant VinFast has confirmed entry into India via TN. Beating expectations and speculations, VinFast will be setting up both its EV car and battery manufacturing plant in Tuticorin with an overall investment of USD 2 billion (over Rs 16,000 crore)," Minister for Industries T R B Rajaa said.

EV manufacturing companies are not only important economic drivers but also powerful accelerators to the State's green vision, he said.

"We are delighted that VinFast has chosen to invest in Tamil Nadu to establish its integrated EV facility. I thank the Chairman and the entire VinGroup family, for having trust in the infrastructure and talent pool of Tamil Nadu", he added.

The 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, the company said. PTI VIJ SS