VinFast to invest $2bln in green transportation in India

VinFast and the Tamil Nadu State Government have officially announced cooperation through an MoU to develop green transportation in India. Under the agreement, the two aim to actively work towards an investment goal of up to $2 billion. The first phase will see investment of $500 million over a span of five years.

Ms. Tran Mai Hoa, Deputy General Director of Business and Marketing at VinFast globally, said the MoU represents a strong commitment from VinFast to sustainable development and a vision for an emissions-free future in transportation. “We believe that investing in Tamil Nadu will not only bring significant economic benefits to both parties but also contribute to promoting the transition to green energy in India and the region,” she said.

The initiative aligns with Tamil Nadu’s goal of having 30 per cent of vehicles in the state being electric, to reduce carbon emissions in its transportation sector. The project is set to commence this year, laying a solid foundation for economic growth in Tamil Nadu and across India.

“Electric vehicle manufacturers are not only crucial economic drivers but also contribute to the green vision of the state,” said Mr. Thallikotai Raju Balu Rajaa, Minister of Industry for the Tamil Nadu Government. “We are delighted that VinFast has chosen to invest in Tamil Nadu, to establish its electric vehicle and battery production facility. With strong capabilities and a robust commitment to a green future, I believe VinFast will be a reliable economic partner, contributing to the sustainable development of Tamil Nadu.”

VinFast’s project for developing green transportation will be its third manufacturing facility and represents the largest investment in the history of Tamil Nadu. Recognizing its significant contribution to the labor market, economic growth, and the state’s green outlook, the Tamil Nadu Government has pledged maximum support to VinFast in terms of manufacturing land, energy supply, and production infrastructure. Additionally, both parties will continue cooperating to explore opportunities for developing charging station infrastructure to jointly promote green transportation locally.

In addition to manufacturing in Tamil Nadu, VinFast plans to establish a distribution and retail network nationwide to quickly and extensively connect with Indian customers. This expansion into India is part of VinFast’s strategy to seize opportunities in the world’s most populous and rapidly-growing electric vehicle market, contributing to the brand’s strong presence in key markets and completing the electric vehicle supply chain for global development.

The decision to invest in Tamil Nadu not only brings economic benefits to VinFast and the local market but also strengthens the comprehensive strategic partnership between Vietnam and India.