HÀ NỘI — VinFast and the Government of Tamil Nadu have signed a Memorandum of Understanding (MoU) that will see approximately 200 hectares of land in the SIPCOT Industrial Park in Thoothukudi allocated to support the development of the company’s existing facility.

The agreement marks a significant step in VinFast’s efforts to expand its presence in the world’s third largest automotive market.

The milestone gives VinFast the opportunity to broaden its product portfolio from electric cars to electric buses, e-scooters and charging infrastructure, reaffirming its long-term commitment to India.

Under the MoU, the Government of Tamil Nadu will allocate approximately 500 acres, or around 200 hectares, of land adjacent to VinFast’s existing Thoothukudi facility. The state will also provide support in securing required permits and establishing essential infrastructure connections including electricity, water, internal road access, drainage and waste management.

As the second phase of its existing US$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.

For VinFast’s proposed $500 million investment, the Government of Tamil Nadu will apply all applicable incentives, financial support measures and statutory exemptions in line with the state’s prevailing regulations and relevant policies.

With the signing of the MoU, VinFast takes another step towards strengthening its manufacturing readiness in the Indian market. The initiative is also expected to increase supply chain localisation, create additional employment opportunities and support workforce skill development in the region.

The existing Thoothukudi facility covers 400 acres, or 160 hectares, and is equipped with internationally standardised production lines. It has an initial annual capacity of 50,000 electric vehicles and is being expanded to 150,000 units. — VNS