BYD, dubbed China’s Tesla, will expand its investment in Vietnam with plans to manufacture electric vehicles (EVs) in the country for the market and others in Southeast Asia, BYD chairman Wang Chuanfu said.
In his meeting with Vietnam’s Deputy Prime Minister Tran Hong Ha in Hanoi last Friday, Wang said he expected the government would create favorable conditions for BYD to complete investment procedures for the plans, which also include assembly work.
Wang, also founder of BYD, did not disclose the investment size. He said the planned business expansion would include establishing a supply chain in Vietnam focusing on support industries for EV production to diversify its supply chain network.
The Chinese giant is operating a factory to assemble electronic devices and parts in the northern province of Phu Tho.
"Expanding to electric vehicle manufacturing will be a milestone for BYD’s new investment plans in Vietnam," Deputy PM Ha said told Wang.
Czech carmaker Skoda is building a car production plant in Quang Ninh province, also in northern Vietnam, in partnership with Vietnamese automaker Thanh Cong Motor. The new plant will assemble Skoda models Kushaq and Slavia as of 2024. Skoda said its fully-electric Enyaq iV model, fully assembled in Europe, will also debut in the Vietnamese market at a certain time next year or later.
The moves by BYD and Skoda will pose pressure on Vietnamese EV maker VinFast, a subsidiary of Vietnam’s largest conglomerate Vingroup, founded by Forbes-listed Vietnamese billionaire Pham Nhat Vuong. Outside Vietnam, VinFast is expanding in the U.S., Canada, and Europe.
Fresh funding pledges of up to $2.5 billion, led by $1 billion from Vingroup chairman Vuong, were announced in late April for VinFast’s development to enable the EV maker to achieve its global growth goals. He and Vingroup intend to contribute $1 billion and $500 million, respectively, by way of non-refundable grants.