The ground breaking ceremony took place in the presence of Tamil Nadu chief minister MK Stalin along with the senior representatives of the Vin group.
“Today, VinFast begins its First Phase in which of the overall Rs 16,000 crores, this phase will see an investment of Rs 4000 Crs which will result in over 10,000 total jobs for Tamil Nadu,” Tamil Nadu Industries Minister TRB Rajaa said. “Bringing this investment to Thoothukudi also highlights our CM’s focus on distributed growth and providing high skill jobs to the educated youth in backward districts of Tamil Nadu.”
ET had reported on February 10 that the Vietnamese company that is looking to compete with the likes of Tesla was going to have its ground-breaking ceremony on February 25.
The establishment of VinFast’s facility is being viewed as an important moment in the creation of a comprehensive industrial cluster in south Tamil Nadu.
The state government said the upcoming factory is poised to catalyse the formation of a robust vendor ecosystem, surrounding the VinFast factory with a network of suppliers and ancillary industries.
Discover the stories of your interest
The ground breaking development follows the signing of a Memorandum of Understanding (MoU) at the Tamil Nadu Global Investors’ in January wherein the partnership committed to a total investment of up to $2 billion, with $500 million allocated for the first phase of the integrated EV facility over the next five years.”We signed the MoU with VinFast in January and in February the CM has broken ground to start building the factory,” Rajaa said. “The respected Chairman of Vin Group has also expressed his aim of completing construction and starting production within just 15 months from today.”
The TN Industries minister added that the government was focused on building on Tamil Nadu’s strength as the auto capital of India with a sharp focus on building strength in the Electric Vehicle (EV) sector.
“Today, Tamil Nadu is the clear leader in the sector with over 70% of all electric two-wheelers and 40% of all electric four-wheelers sold in India being manufactured in Tamil Nadu,” he said. “Now, with the addition of ilustrious names like VinFast to the list of EV manufacturers in Tamil Nadu, we are proud that the CM has closed in on his aim of making Tamil Nadu the EV capital of South Asia and not just India.”
