VinFast to invest $500 million to expand plant in Tamil Nadu

Vietnamese automaker VinFast and the Government of Tamil Nadu have signed a Memorandum of Understanding (MOU) to allocate 200 hectares of land in the SIPCOT Industrial Park in Thoothukudi to support the development of the company’s existing facility.

VinFast will now broaden its portfolio from electric cars to electric buses, e-scooters and charging infrastructure. As the second phase of its existing $2 billion commitment, VinFast will invest $500 million in Thoothukudi to develop new dedicated workshops and production lines for electric buses and e-scooters, covering manufacturing, assembly, testing and other related operations.

Under the MOU, the Government of Tamil Nadu will allocate approximately 500 acres (around 200 hectares) of land adjacent to VinFast’s existing facility in Thoothukudi. The state will also provide support in securing required permits and in establishing essential infrastructure connections such as electricity, water, internal road access, drainage, and waste management. For VinFast’s proposed $500 million investment, the Government of Tamil Nadu will apply all applicable incentives, financial support measures, and statutory exemptions in accordance with the state’s prevailing regulations and relevant policies.

The existing Thoothukudi facility covers 400 acres (160 hectares) and has an initial annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units. Industries Minister T.R.B. Rajaa said: “We welcome VinFast’s next phase of planned development of the electric cars in Tamil Nadu and the new introduction of electric bus and e-scooters production will generate additional momentum for the green transportation strategy of both Tamil Nadu and India.”

Pham Sanh Chau, Vingroup Asia CEO and VinFast Asia CEO, said: “The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India, from electric cars to electric buses and e-scooters, allowing us to meet a wider range of customer needs. We also expect this initiative to create new job opportunities, advance localization and strengthen the skills of the local workforce.”