Business EconomyPosted at: Dec 4 2025 6:08PM


Vietnam EV makers Vinfast inks pact with TN govt to expand E-scooter, bus manufacturing

Chennai/Hanoi, Dec 4 (UNI) Vietnam's Electric Vehicle makers VinFast and the Tamil Nadu
Government today signed a Memorandum of Understanding (MoU) to allocate about 200
hectares of land in the SIPCOT Industrial Park in the southern Thoothukudi district to support
the development of the company’s existing facility to manufacture E-scotter and buses.
The MoU was signed at Hanoi in Vietnam for expanding its manufacturity facility in the
State.
This milestone provides an opportunity for VinFast to broaden its product portfolio from electric
cars to electric buses, e-scooters and charging infrastructure, while reaffirming the company’s
long term commitment to the world’s third largest automotive market.
Under the MoU, the Tamil Nadu Government 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,
a company statement from Hanoi said.
As the second phase of its existing USD 2 billion commitment, VinFast will invest USD 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 USD 500 million investment, the State Government will apply all
applicable incentives, financial support measures, and statutory exemptions in accordance
with the State’s prevailing regulations and relevant policies.
With the signing of this MoU, VinFast takes another step forward in strengthening its
manufacturing readiness in the Indian market.
The initiative is also expected to increase supply chain localization, create additional
employment opportunities, and support workforce skill development in the region.
The existing Thoothukudi facility covers 400 acres (160 hectares) and is equipped with
internationally standardized production lines. It has an initial annual capacity of 50,000
electric vehicles and is being expanded to 150,000 units.
Mr. 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"
"VinFast believes that Tamil Nadu will continue to serve as a strategic hub in our global
expansion journey and will play an important role in supporting India’s green mobility
goals in the years ahead", he added.
Tamil Nadu Industries Minister TRB 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."
The state government is committed to working closely with VinFast and ensuring favorable
conditions throughout the implementation process to deliver lasting benefits for the community
and the regional economy by ensuring that Vingroup thrives in Tamil Nadu and their flourishing
ecosystem provides jobs for Tamil Nadu, he said.
Since entering the Indian market, VinFast has continuously expanded its comprehensive EV
ecosystem that spans manufacturing, distribution, charging infrastructure, aftersales services
and battery recycling, with the Tamil Nadu plant being an important part of this ecosystem.
At the same time, the company’s distribution network is rapidly growing, with 24 dealers
already operating in major cities and a target of reaching 35 by the end of the year.
With a consistent focus on innovation, sustainability and customer-centric design, VinFast is
committed to supporting India’s transition toward environmentally friendly mobility solutions
and contributing to a greener and more inclusive automotive future.
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Tags: #Vietnam EV makers Vinfast inks pact with TN govt to expand E-scooter# bus manufacturing
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