Private giant Vingroup to build electric vehicle factory in central Vietnam

The central province of Ha Tinh on Friday gave in-principle approval to a VND7.3 trillion ($288 million) EV plant project, invested by Vinhomes - a subsidiary of Vietnam’s private conglomerate Vingroup, in Ky Anh town.

The decision was made during a meeting of the provincial Party Committee. Accordingly, the Ha Tinh Economic Zone Authority is tasked with reviewing the project details and ensuring all legal requirements are met before official approval.

In its proposal submitted to the committee, Vinhomes said it intends to develop the plant on a 362,000-square-meter site in the Vung Ang Economic Zone.

The first phase, set for completion by June 2026, will have an annual production capacity of 200,000 vehicles. The second phase, slated for post-2026, aims to double production to 400,000 vehicles annually.

This new facility adds to Vingroup’s growing investment footprint in Ha Tinh. In 2021, the group opened its VinES electric vehicle battery factory in the Vung Ang EZ, covering nearly 13 hectares, and began supplying batteries for the VF6 electric vehicle model in mid-2023.

Vingroup is also planning further investments in a seaport and logistics facility with VND40 trillion ($1.58 billion), and the Ky Ninh resort complex in the Vung Ang EZ.

Local authorities expect the factory will not only drive the growth of the green industry but also contribute to reducing greenhouse gas emissions, aligning with global sustainable development trends.

It is also anticipated to enhance Ha Tinh’s image in the eyes of domestic and international investors, laying foundations for attracting high-value projects.

The project is expected to spark significant economic activity in the region, with potential growth in logistics, material supply, and commercial services.

It will also contribute to the development of an integrated industrial ecosystem, including components and battery production, creating a modern network of EV factories within the Vung Ang EZ.

The 22,000-hectare EZ was established in 2006 and currently hosts 151 investment projects. These include 94 domestic projects with total registered capital of VND59.8 trillion ($2.36 billion) and 57 foreign-invested ones worth over $13.5 billion, generating nearly 20,000 local jobs.

Notable projects include Taiwanese heavyweight Formosa’s Son Duong steel and port complex, with an initial investment of over $10 billion, and the $1.2 billion Vung Ang I thermal power plant.

Ha Tinh aims to further develop the Vung Ang EZ into a multi-functional economic hub, with metallurgy, energy, logistics, and seaport services as key sectors.