VinFast accelerates global ambitions with $2b investment in electric vehicle factory in India
VinFast, Vietnam’s leading car manufacturer, has unveiled plans to construct its maiden electric vehicle (EV) factory in India, marking a strategic move in a $2 billion investment initiative.
The southern state of Tamil Nadu has been chosen as the site for this ambitious project, with an initial commitment of $500 million over the first five years.
With aspirations to compete against EV giants like Tesla and penetrate international markets, VinFast’s foray into the global automotive landscape has encountered challenges.
Despite selling 11,300 vehicles in the first half of last year, a significant portion—7,100 units—was purchased by a company affiliated with VinFast’s parent company.
Having debuted on the Nasdaq in August, VinFast made headlines globally as its valuation experienced a meteoric rise followed by a subsequent decline. In a statement, the company expressed its vision for the “VinFast Tamil Nadu project” to evolve into a premier EV production hub, boasting an annual capacity of up to 150,000 units.
Construction of the state-of-the-art plant is slated to commence this year, promising to generate up to 3,500 local jobs.
The company emphasized that this initiative is a pivotal component of VinFast’s strategy to establish a robust presence in key markets and fortify its supply chain for global expansion.
The announcement received an endorsement from Tamil Nadu Chief Minister M.K. Stalin, who lauded the deal as a “great leap in the industrial development” of the state. The ambitious venture aligns with VinFast’s goal to position itself as a formidable player in the global EV market.
In a significant leadership change, VinFast appointed Pham Nhat Vuong, the chairman of its parent company Vingroup, as the new CEO.
Vuong will play a direct role in overseeing VinFast’s operations, including global production, sales, and marketing. Vietnam’s wealthiest individual, with a net worth of approximately $4.6 billion according to Forbes, Vuong replaces Le Thi Thu Thuy, who has been serving as the CEO since 2021 and will now assume the role of chairwoman of the board of directors.
VinFast’s latest move, combined with the leadership transition, signals a bold step towards achieving its global ambitions and establishing a prominent presence in the rapidly evolving EV market.
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