VinFast's move into Indian market a significant stride in global expansion: RMIT expert

By Majo George
Thu, February 29, 2024 | 8:02 am GMT+7

Indian-born RMIT senior lecturer Dr. Majo George hailed VinFast’s decision to open a manufacturing plant in India as a strategic manoeuvre that will not only leverage the potential of a burgeoning electric vehicle (EV) market but also position the company favorably against future competitors.

 Dr Majo George, RMIT senior lecturer. Photo courtesy of RMIT.

Dr Majo George, RMIT senior lecturer. Photo courtesy of RMIT.

On February 25, 2024, Vietnam's leading EV manufacturer VinFast officially broke ground on its first integrated EV manufacturing facility in the state of Tamil Nadu, India.

This move into the Indian market is a significant stride in VinFast’s global expansion, reflecting its ambition to penetrate the world's third-largest vehicle market. The initiative involves a substantial investment of up to $2 billion, with an intended commitment of $500 million earmarked for the project's first five years. The facility is expected to become operational in 2026.

The state of Tamil Nadu is already a significant hub for automobile manufacturing and home to the production facilities of global giants such as BMW, Hyundai, and Renault-Nissan. The Thoothukudi site in Tamil Nadu, chosen by VinFast, is expected to evolve into a first-class EV production hub, with an anticipated annual capacity of up to 150,000 units.

Vietnam's leading EV manufacturer VinFast officially broke ground on its first integrated EV manufacturing facility in the state of Tamil Nadu, India on February 25, 2024. Photo courtesy of Unsplash.

Vietnam's leading EV manufacturer VinFast officially broke ground on its first integrated EV manufacturing facility in the state of Tamil Nadu, India on February 25, 2024. Photo courtesy of Unsplash.

The Tamil Nadu plant will serve as VinFast's third manufacturing project and is noted as the most significant investment in Tamil Nadu's history. In addition to the manufacturing facility, VinFast plans to establish a nationwide dealership network in India to establish a strong brand presence and connect swiftly with customers nationwide.

This initiative is a significant step towards promoting green transportation in India. It aligns with the Indian government's ambitious target of achieving 30% electrification by 2030. The Tamil Nadu government has pledged support to this project by committing to provide cleared land, uninterrupted power supply, and other infrastructure support. Furthermore, the project is expected to generate around 3,500 jobs locally, thus contributing significantly to the local economy.

This venture offers VinFast an unparalleled opportunity to leverage India's generous government policies, positioning the nation as a pivotal hub for exporting cars globally. India's robust infrastructure, stable government policies at both central and state levels, a skilled and youthful workforce, and a vast domestic market make it an ideal location for VinFast's ambitious expansion.

The Indian EV market is projected to reach a remarkable $100 billion, making it a lucrative opportunity for global players. However, it is still in its nascent stages of development and offers a unique opportunity for early movers like VinFast to establish brand presence and loyalty.

VinFast's foray into the Indian market comes at a pivotal moment, strategically preceding the anticipated entry of EV giant Tesla into the Indian manufacturing industry. This timing is advantageous for VinFast, as establishing a foothold before Tesla could provide a significant competitive edge.

Given the Indian government's commitment to transitioning to EVs, the local sales of VinFast cars in India could potentially surpass their sales in Vietnam, provided the company effectively markets its cars to the Indian consumer base.

With the aggressive pricing and futuristic styling of its EVs, VinFast has the potential to capture a significant share of the Indian EV market. This could catalyze the company's growth in the wake of fluctuating market dynamics in the U.S.

The connection between Vietnam and India dates back centuries and further enhances the potential for VinFast in the Indian market. As Vietnam has become a popular tourist destination, many people in India are already familiar with VinFast and its vehicles. The cultural similarities between the two nations, reflected in a shared preference for SUVs, sedans, and other electric ones, including two- and three-wheelers, present a unique advantage for VinFast.

Moreover, there is a substantial opportunity for VinFast to venture into the development of electric batteries, catering not just to the Indian market but also to the global EV market. Additionally, exploring the Indian taxi car market under VinFast GSM could be another lucrative avenue, tapping into a vast and growing sector.

VinFast should also focus on two new sectors: heavy and transport vehicles. The company's existing prowess in manufacturing electric buses aligns perfectly with the current trend of Indian state governments transitioning their traditional bus fleets to electric models. The heavy transportation industry, especially the production of electric trucks, is another area ripe for exploration. With state-of-the-art technology and the visionary leadership of Pham Nhat Vuong, VinFast is well-positioned to conduct further research and potentially dominate this segment. The relaxed policies in India provide an inviting environment for such innovative ventures.

Overall, VinFast's expansion into India represents a strategic move to tap into one of the world's most populous nations and rapidly expanding EV markets. It signifies the company's commitment to sustainable development and a vision of a zero-emission transportation future, bringing economic benefits and contributing to the region's green energy transition.

Comments (0)
  • Read More
Advocacy group GWEC proposes model for Vietnam to meet offshore wind targets

Advocacy group GWEC proposes model for Vietnam to meet offshore wind targets

The Global Wind Energy Council (GWEC), a member-based organization that represents the entire wind energy sector, has proposed a two-stage competitive model for Vietnam to scale investment and achieve its offshore wind development targets.

Energy - Sun, November 10, 2024 | 4:00 pm GMT+7

Foreign traders extend net-selling streak in Vietnam amid VND devaluation woes

Foreign traders extend net-selling streak in Vietnam amid VND devaluation woes

Foreign investors net sold a total of VND3,639 billion ($144 million) worth of Vietnamese shares in the week ended November 8, extending their net-selling streak amid concerns over the dong devaluation.

Finance - Sun, November 10, 2024 | 1:24 pm GMT+7

Vietnam to block customs clearance for purchases on unregistered online platforms

Vietnam to block customs clearance for purchases on unregistered online platforms

The General Department of Vietnam Customs (GDVC) has requested local customs authorities not clear shipments purchased via cross-border shopping platforms that have yet to register with the Ministry of Industry and Trade.

Economy - Sun, November 10, 2024 | 11:10 am GMT+7

Central counterparty clearing mechanism key to facilitating Vietnam stock market upgrade: exec

Central counterparty clearing mechanism key to facilitating Vietnam stock market upgrade: exec

A central counterparty clearing (CCP) mechanism is key to removing prefunding hitches and drawing more foreign investors to Vietnam’s stock market, said Ta Thanh Binh, general director of Vietnam Securities Depository and Clearing Corporation (VSDC).

Finance - Sun, November 10, 2024 | 9:00 am GMT+7

Vietnam semiconductor workforce meets just 20% of industry demand: academic

Vietnam semiconductor workforce meets just 20% of industry demand: academic

Vietnam faces a significant shortage of semiconductor workers, with the country currently meeting just 20% of actual demand, said a senior academic.

Economy - Sun, November 10, 2024 | 7:50 am GMT+7

Hot real estate prices not a good sign for Vietnam: association exec

Hot real estate prices not a good sign for Vietnam: association exec

Recent fluctuations in real estate prices in suburban areas and the surge in land auction prices are issues of concern, said Nguyen Van Dinh, vice chairman of the Vietnam Real Estate Association (VNREA).

Real Estate - Sat, November 9, 2024 | 9:27 pm GMT+7

200 billionaires to attend Art for Climate Festival in northern Vietnam

200 billionaires to attend Art for Climate Festival in northern Vietnam

Around 200 billionaires are expected to attend an Art for Climate Festival that the United Nations Alliance for Sustainable Development Goals (UnASDG) is jointly organizing early next year in the northern province of Quang Ninh.

Industries - Sat, November 9, 2024 | 7:18 pm GMT+7

Vietnam can achieve two-digit GDP growth if bottlenecks removed: PM

Vietnam can achieve two-digit GDP growth if bottlenecks removed: PM

Vietnam can achieve two-digit GDP growth rates in the coming decades if institutional bottlenecks are cleared and all resources are mobilized, Prime Minister Pham Minh Chinh asserted at a regular cabinet meeting on Saturday.

Economy - Sat, November 9, 2024 | 4:14 pm GMT+7

PYN Elite sees returns down 1.7% in October, first time since May

PYN Elite sees returns down 1.7% in October, first time since May

Finland-based PYN Elite Fund has said it recorded returns of negative 1.7% month-on-month in October, the first decline since May this year.

Finance - Sat, November 9, 2024 | 2:26 pm GMT+7

Philippines’ rice imports surpass 2023 level

Philippines’ rice imports surpass 2023 level

The Philippines’ rice imports so far this year have surpassed last year's level and can hit 4.2 million metric tons by end-2024, said Department of Agriculture's technical advisory group member and former undersecretary for rice industry development Leocadio Sebastian.

Southeast Asia - Sat, November 9, 2024 | 1:58 pm GMT+7

Indonesia, Canada discuss expediting completion of comprehensive economic pact

Indonesia, Canada discuss expediting completion of comprehensive economic pact

Indonesian Deputy Trade Minister Dyah Roro Esti expressed optimism that the 10th round of the negotiations on the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) will run smoothly and produce a substantial agreement.

Southeast Asia - Sat, November 9, 2024 | 1:54 pm GMT+7

Indonesia considers Apple’s $10 mln investment proposal

Indonesia considers Apple’s $10 mln investment proposal

Indonesian Deputy Minister of Industry Faisol Riza said at a Wednesday press meet that he has heard about Apple's plan to invest $10 million in Indonesia and hoped that this commitment will be fulfilled.

Southeast Asia - Sat, November 9, 2024 | 1:50 pm GMT+7

Indonesia shifts focus to upgrading existing airports

Indonesia shifts focus to upgrading existing airports

Indonesia has decided to put the brakes on a IDR14 trillion (over $888 million) project to build a fourth terminal at Soekarno-Hatta International Airport, the country's largest and busiest aviation hub.

Southeast Asia - Sat, November 9, 2024 | 1:46 pm GMT+7

Chairman of Vietnam's leading corp. BIM Group passes away

Chairman of Vietnam's leading corp. BIM Group passes away

Doan Quoc Viet, chairman and founder of BIM Group, one of Vietnam's largest multi-sector corporations, died on Thursday at the age of 70.

Companies - Sat, November 9, 2024 | 12:43 pm GMT+7

Vietnam's T&T Energy, China firms to cooperate in battery energy storage systems

Vietnam's T&T Energy, China firms to cooperate in battery energy storage systems

T&T Energy Group JSC, under Vietnamese conglomerate T&T Group, will collaborate with Chinese firms Cospowers and Goldwind in battery energy storage systems (BESS).

Energy - Sat, November 9, 2024 | 12:12 pm GMT+7

Taiwan firms opens $15 mln factory in Vietnam, to export cameras, lens to Japan, US

Taiwan firms opens $15 mln factory in Vietnam, to export cameras, lens to Japan, US

Ability Electronics Technology Vietnam, under Taiwanese manufacturer and designer of optical devices Ability Enterprise, opened its $15 million factory in the northern province of Vinh Phuc on Friday.

Industries - Sat, November 9, 2024 | 10:41 am GMT+7