Vinfast gets a new CEO and announces EV factory in India

A memorandum of understanding signed between Vinfast and the government of the southern Indian state of Tamil Nadu foresees the construction of an electric vehicle factory in the Indian city of Thoothukudi. According to Vinfast, the annual capacity should be 150,000 units, and construction of the factory will begin in 2024.

VinFast also states that it “will work toward a total investment of up to 2 billion US dollars” with the state government – including a tranche of 500 million US dollars for the first phase of the project, which will be spread over five years. The establishment of VinFast’s electric vehicle plant in Tamil Nadu is expected to create 3,000 to 3,500 jobs.

In addition to building the production facilities, VinFast plans to open a nationwide dealer network. That way, the manufacturer wants to build a strong brand presence and establish a “rapid connection” with customers nationwide. According to Tran Mai Hoa, deputy managing director for sales and marketing at VinFast Global, the investment in “Tamil Nadu will not only bring considerable economic benefits to both parties, but will also help accelerate the green energy transition in India and the region.”

Meanwhile, Vinfast has made a personnel change. It appointed its founder and most prominent financial backer Pham Nhat Vuong as the new CEO. He replaces Le Thi Thu Thuy, who held the position since 2021. Vuong will now directly oversee VinFast’s global operations, including production, sales and marketing. He also founded the parent company Vingroup, Vietnam’s largest business conglomerate.

Vinfast was founded in 2017 and initially produced combustion cars, but began building electric vehicles in 2021. The reason for the change of position was that the time had come to develop the company’s management further after entering the North American market, the carmaker states. Vinfast made its debut on the US stock exchange in mid-August 2023 via a SPAC deal.

vingroup.net (India), vingroup.net, reuters.com (both new CEO)