Vietnam-based VinFast Begins Building EV Plant in Tamil Nadu

VinFast, the leading producer of electric vehicles in Vietnam, celebrated a significant milestone by officially commencing construction on its first integrated electric vehicle (EV) production facility in Tamil Nadu, India. Distinguished dignitaries, including the Honourable Chief Minister of Tamil Nadu, Thiru M. K. Stalin, were present at the ceremony, which marked VinFast's dedication to environmentally friendly transportation on a global scale.

The 400-acre electric vehicle facility, located within the industrial park of the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), is expected to have a significant effect on the local economy. VinFast's position as a significant leader in the electric car sector is expected to be cemented with the $500 million investment over the next five years, which is estimated to provide around 3,500 employment possibilities for the local workforce.

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Along with other high-ranking government officials, such as Thiru V. Arun Roy IAS, Industries Secretary, and Members of Parliament, Thiru M. K. Stalin, the Chief Minister of Tamil Nadu, and Thiru Dr. T. R. B. Rajaa, the Minister for Industries, were present at the groundbreaking event. The leadership team of VinFast India and the state government demonstrated their cooperative efforts throughout the occasion. With an expected yearly manufacturing capacity of 150,000 vehicles, VinFast's EV plant in Tamil Nadu is expected to make a major contribution to the EV market in India. The company's objective is to fortify its alliances with international suppliers while concentrating on advancing domestic production, supporting the "Make in India" campaign, and stimulating economic expansion in the area.

The CEO of VinFast India, Mr. Pham Sanh Chau, expressed his excitement for the initiative and emphasised how important it is to the advancement of environmentally friendly and sustainable mobility in India. "The groundbreaking ceremony held by VinFast for its Thoothukudi plant is a significant step towards a zero-emission transportation future, laying the groundwork for innovation, economic growth, and environmental sustainability in the area," Mr. Chau stated.

Respected Minister Dr. T. R. B. Rajaa emphasised VinFast's entry into India as having a favourable effect on the industrial landscape of the state. "VinFast's arrival in India serves as further evidence of Tamil Nadu's progressive industrial policies and its standing as a global centre for automotive innovation and manufacturing," Dr. Rajaa stated. "We think the project will have a significant positive impact on Tamil Nadu's local economy, job creation, and development of technical skills."

VinFast's global expansion plan places a strong emphasis on India, with the Indian market serving as a primary focus. By adding to VinFast's already-existing manufacturing complex in Vietnam and its upcoming plants in the United States and Indonesia, the new facility in Tamil Nadu strengthens the company's worldwide production ecosystem. To create a strong brand presence and foster relationships with consumers across the nation, VinFast plans to build a nationwide dealership network in addition to its manufacturing plants. The company is dedicated to provide low pricing, first-rate after-sales services, and high-end electric vehicles to the Indian market.

This historic event in Tamil Nadu is a big step towards VinFast, a Vingroup member, realising its goal of spearheading the worldwide revolution in smart electric vehicles. VinFast is positioned to play a significant role in determining the direction of smart mobility for a sustainable planet because of its dedication to sustainability, innovation, and international relationships.

The new facility, which is anticipated to create jobs for 3,000–3,500 people, would be built on a 400-acre plot of land in the Tamil Nadu Industrial Promotion Corporation (SIPCOT) industrial park in Thoothukudi.

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The arrival of VinFast in India confirms Tamil Nadu's innovative industrial policy and its standing as a centre of global automotive innovation and manufacturing. According to TRB Rajaa, the government of Tamil Nadu's Minister for Industries, Investment Promotion and Commerce, "we believe the project will substantially contribute to the local economic advancement, job creation, and technical skill development of the people of Tamil Nadu."

Up to 1,50,000 EV units should be produced annually by the future model. Officials at the company declined to comment, despite rumours that the new plant will manufacture electric vehicles and two-wheelers.

India is one of VinFast's primary markets for its global expansion strategy. "Investing in the construction of a factory in Tamil Nadu state affirms VinFast's global stature, making an important addition to the production ecosystem. around the world, including an existing factory in Vietnam, a factory under construction in the US, and a factory to be built in Indonesia," the statement continued. "It also aims to seize opportunities in the world's third largest automobile market."

To further solidify its brand promise of "good cars-good excellent after-sales," VinFast also intends to create a national dealer network.

The EV facility will serve nations in South Asia, the Middle East, and Africa, in addition to the Indian market.

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Additionally, it has been discovered that VinFast has asked the Central government to lower import taxes on its electric vehicles (EVs) for a few years while it builds its brand and commissions its facility. Leading international EV manufacturer Tesla has also been requesting a 100% import duty exemption to ship its fully assembled EVs into India. The central government has not yet made its decision public, though.