VinFast and the Tamil Nadu government have officially signed a Memorandum of Understanding (MoU) to allocate approximately 200 hectares of land in the SIPCOT Industrial Park, Thoothukudi, for expanding the company’s existing facility. This agreement opens up opportunities for VinFast to diversify its product portfolio, ranging from electric cars, electric buses, and electric motorcycles to charging infrastructure, while reaffirming the company’s long-term commitment to the world’s third-largest automotive market.
According to the MoU, the Tamil Nadu government will allocate to VinFast approximately 500 acres, equivalent to 200 hectares of land adjacent to the company’s current facility in Thoothukudi. The state will also support the company in obtaining necessary permits and establishing essential infrastructure connections, including electricity, water, internal roads, drainage systems, and waste treatment facilities.
On VinFast’s part, the company plans to invest $500 million in Thoothukudi to develop specialized workshops and production lines for electric buses and electric motorcycles, encompassing manufacturing, assembly, testing, and related operations. This investment marks the second phase of the company’s previously announced $2 billion commitment.
For VinFast’s proposed $500 million investment, the Tamil Nadu government will fully apply incentives, financial support, and tax exemptions as per existing regulations and relevant state policies.
With the signing of the MoU with the Tamil Nadu government, VinFast takes another step toward strengthening its manufacturing capabilities in the Indian market. This initiative is also expected to promote supply chain localization, create additional job opportunities, and enhance the skills of the local workforce.
VinFast’s current facility in Thoothukudi spans 160 hectares and is equipped with internationally standardized production lines. The plant has an initial design capacity of 50,000 electric vehicles per year and is being expanded to 150,000 vehicles annually.
Mr. Pham Sanh Chau (left), CEO of Vingroup Asia, and Mr. Prabakaran Andi Saravanan, Deputy Director of the Tamil Nadu Investment Bureau, at the signing ceremony.
Mr. Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, stated: “The proposed expansion of the Tamil Nadu plant will enable us to broaden our product range in India, from electric cars to electric buses and electric two-wheelers, meeting the diverse needs of consumers. We anticipate this initiative will create new job opportunities, drive localization, and enhance the skills of the local workforce. VinFast is confident that Tamil Nadu will continue to play a strategic role in our global expansion journey and contribute significantly to India’s goal of promoting green transportation in the coming years.”
Dr. T.R.B. Rajaa, Tamil Nadu’s Minister of Industries, commented: “We welcome the next phase of VinFast’s development in Tamil Nadu. The continued advancement of electric vehicles, along with the introduction of electric bus and motorcycle production, will further propel the green transportation strategy of both Tamil Nadu and India. The state government is committed to closely collaborating with VinFast and ensuring a smooth implementation process to bring sustainable benefits to the community and regional economy, while supporting Vingroup’s robust growth in Tamil Nadu. Through this, the group’s expanding ecosystem will create numerous job opportunities for the people of Tamil Nadu.”
Since establishing its presence in India, VinFast has continuously expanded its comprehensive electric vehicle ecosystem, including manufacturing, distribution, charging infrastructure, after-sales services, and recycling. The Tamil Nadu plant is a crucial component of this ecosystem. Simultaneously, the company’s distribution network has grown rapidly, with 24 dealerships already operational in major cities and plans to reach 35 dealerships by the end of this year.
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