The development’s first phase is set to span five years. Credit: VinFast. 

VinFast has signed a memorandum of understanding (MoU) with the Tamil Nadu state government of India to build a new integrated electric vehicle (EV) facility in the region. 

The partnership, which aims to propel the development of green transportation in India, involves a total investment of up to $2bn. 

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Out of this total investment, VinFast and the state government have committed approximately $500m for the first phase of the project over the next five years from the commencement date.  

VinFast’s new integrated EV plant will be located in the city of Thoothukudi and is said to be both the company’s third manufacturing project and its largest investment in Tamil Nadu. 

The facility is expected to become a key EV production hub in the country, with an expected capacity to produce up to 150,000 EV units every year. 

The Vietnam-based EV manufacturer said that construction of the factory will commence later this year.

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Associated work is set to create between 3,000 and 3,500 jobs in the region. 

The proposed project aligns with the state government’s goal to have at least 30% of newly registered private cars electric, supporting its efforts to reduce carbon emissions in the transportation sector. 

VinFast Global Sales and Marketing deputy CEO Tran Mai Hoa said: “The MoU demonstrates VinFast’s strong commitment to sustainable development and vision of a zero-emission transportation future.  

“We believe that investing in Tamil Nadu will not only bring considerable economic benefits to both parties but will also help accelerate green energy transition in India and the region.”