On 4/12, VinFast and the government of Tamil Nadu state (India) signed a memorandum of understanding (MoU), allocating an additional 200 hectares of land for the Vietnamese automaker to expand its production facility and diversify its product portfolio. Under the MoU, the local government will support the company in obtaining licenses and establishing essential infrastructure connections for production.

Representatives from VinFast (left) and the Indian government at the signing ceremony. Photo: VinFast

For its part, VinFast plans to invest an additional 500 million USD to develop specialized workshops and production lines for electric buses and electric motorcycles, including testing and operating related components. This investment marks giai doan 2 of its previously committed 2 billion USD investment.

Pham Sanh Chau, Chief Executive Officer of Vingroup Asia and VinFast Asia, stated that the proposed factory expansion will enable the company to offer a diverse product range in India, meeting market demand. "We expect this initiative to create new job opportunities, promote localization, and enhance local labor skills. The factory in Tamil Nadu will play a central role in VinFast's global expansion journey, advancing India's green transportation goals," he said.

Representatives from the Indian government signed the first VinFast vehicle produced at the factory on 4/8. Photo: VinFast

VinFast's factory in the world's third-largest automotive market was inaugurated on 4/8, marking its first operational facility outside Vietnam. Located in the Sipcot industrial park, Thoothukudi city, Tamil Nadu state, with a total investment of 2 billion USD, it has already rolled out two electric vehicle models, the VinFast VF 6 and VF 7, for the domestic market.

Since entering the Indian market, VinFast has continuously expanded its electric vehicle ecosystem, encompassing production, distribution, charging infrastructure, after-sales service, and recycling. VinFast currently has 24 distribution dealerships there and expects to reach 35 dealerships by the end of this year.

A VinFast electric bus displayed at the Busworld Europe 2025 exhibition in early October. Photo: VinFast

The VinFast Thoothukudi factory, spanning 160 hectares, is equipped with the company's global standard automotive production lines, with an initial design capacity of 50,000 electric vehicles per year, and is expanding to 150,000 units.

Quang Anh