Just 50 days after signing MoU, TN CM lays foundation stone for VinFast's EV plant in south TN

Just 50 days after signing MoU, TN CM lays foundation stone for VinFast’s EV plant in south TN

Tuticorin (Tamil Nadu), Feb 25 (PTI) Tamil Nadu Chief Minister M K Stalin on Sunday laid the foundation stone for the electric vehicle car and battery manufacturing facility of VinFast Auto Ltd, which has earmarked investments of Rs 16,000 crore for the state, just 50 days after signing an MoU with the Vietnam-based EV maker.

The memorandum of understanding with the Government of Tamil Nadu for the plant was signed during the Global Investors Meet held by the DMK government in January.

The quick turnaround time from signing to the MoU to laying the foundation stone — 50 days — is an example of Tamil Nadu’s industry-friendly climate and showcases the government’s commitment to quick clearance of approvals.

“In just 50 days since the MoU (was signed) Thoothukudi welcomes VinFast’s first EV plant — a monumental stride for the Dravidian Model Economy,” Stalin said.

“With Rs 16,000 crore investments and 10,000 plus jobs on the horizon, we are charging ahead into a future where opportunity and innovation meet,” he said in a release.

VinFast Auto Ltd, would invest Rs 4,000 crore over the next five years in the initial phase, which would generate 3,500 jobs in the Tuticorin region. The plant would have a capacity to produce 1.50 lakh vehicles once it comes into operation.

“A significant milestone for south Tamil Nadu with MoUs from the Tamil Nadu Global Investors Meet 2024 being quickly converted into jobs for TN,” Minister for Industries T R B Rajaa, who took part in the ground-breaking ceremony said.

“With the ground-breaking of the VinFast EV factory in Tuticorin by the chief minister, South Tamil Nadu has embarked on a prosperous journey.” he said in a social media post.

“Look at how fast we started work on VinFast. We signed the MoU in January and we have broken ground in February. I thank the Chairman of VinGroup, CEO Pham Sanh Chau and the entire VinFast family for their faith in TN,” he said.

The project stands testament to the commitment of the chief minister for distributed industrial growth and the creation of jobs for youth across all districts of the state, he added.

The ceremony not only marks the inception of an innovative hi-tech manufacturing unit but also heralds the development of a comprehensive new industrial cluster in south Tamil Nadu, he said.

“This new industrial cluster will help the people of this region realise their dreams by bringing in prosperity, similar to what we have seen in other clusters like Chennai and Hosur,” he added.

According to a company official, VinFast’s venture into the Indian market is part of the company’s strategic global expansion plan, aiming to tap into the rapidly growing electric vehicle segment.

The integrated electric facility of VinFast would contribute to the region’s economic growth. The company aims to maximise the localisation from the outset and collaborate with the best supplier base globally.

“VinFast’s groundbreaking ceremony for its plant in Tuticorin, Tamil Nadu marks a significant step towards sustainable and green mobility in India.” said Chau.

“By establishing an integrated electric vehicle facility, the company’s commitment to job creation, green transportation and strategic partnerships solidifies VinFast’s position as a major player in the electric vehicle industry. This milestone strengthens the bonds between the robust economies of Vietnam and India..” he added.

Besides, the manufacturing facility, VinFast plans to establish a nationwide dealership network to build a strong brand presence. It is committed to providing the Indian market with premium quality products, competitive pricing and outstanding after-sales services to make electric mobility widely accessible and become the EV brand of choice in the country, the release said.