VinFast, a Vietnam-based electric vehicle manufacturer, has officially broke ground on its first integrated electric vehicle (EV) manufacturing facility in the state of Tamil Nadu, India.

This landmark project, creating employment opportunities for approximately 3,500 local residents, affirms VinFast’s commitment to global green transportation, the firm said in a statement on Sunday.

Spanning 400 acres within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate, the electric vehicle facility boasts a total initial investment of $500 million over five years, with a projected capacity of 150,000 vehicles annually.

This will create jobs for 3,000 to 3,500 local residents.

While strengthening partnerships with world-leading suppliers, VinFast also plans to promote localization, contributing positively to local economic growth.

“VinFast’s groundbreaking ceremony for its plant in Thoothukudi, Tamil Nadu, is a significant stride towards sustainable and green mobility in India,” said Pham Sanh Chau, Chief Executive Officer of VinFast India.

“By establishing an integrated electric vehicle facility, the company’s commitment to job creation, green transportation, and strategic partnerships solidifies VinFast’s position as a major player in the electric vehicle industry,

“This milestone strengthens the bonds between the robust economies of Vietnam and India, and underscores VinFast’s dedication to a zero-emission transportation future, setting the stage for economic growth, innovation, and environmental sustainability in the region,” he added.

Chief Minister of Tamil Nadu Dr. T. R. B. Rajaa said that VinFast’s entry into India reaffirms Tamil Nadu’s progressive industrial policies and its role as a global automotive innovation and manufacturing hub.

“Tamil Nadu will match VinFast’s ambitious growth plans in the country and is committed to making zero-emission mobility widely accessible,

“We believe the project will substantially contribute to the local economic advancement, job creation, and technical skill development of the people of Tamil Nadu,” he added.

According to the statement, India represents a key market in VinFast’s global expansion plan, capitalizing on the potential presented by this rapidly growing market.

The project not only affirms VinFast’s global reach but also joins the existing manufacturing complex in Vietnam and future plants in the United States and Indonesia, solidifying VinFast’s global manufacturing ecosystem.

In addition to the manufacturing facilities, VinFast plans to establish a nationwide dealership network to build a strong brand presence and swiftly connect with customers across the country.

VinFast said the firm is committed to providing the Indian market with premium quality products, competitive pricing, and outstanding after-sales services to make electric mobility widely accessible and strengthen the comprehensive strategic partnership between Vietnam and India.

Vietnam’s VinFast to build $500M integrated EV manufacturing site in India