‘Ideal location, talent pool and govt. support drove VinFast’s decision to set up plant in T.N.’

Thoothukudi’s strategic location, Tamil Nadu’s talent pool, and government support were the key factors behind VinFast’s decision to set up its manufacturing plant in the State, VinFast Asia CEO Pham Sanh Chau said.

The Vietnamese carmaker is set to begin the production of its VF7 and VF6 models at the Thoothukudi plant in July, while bookings will open in June.

During the Global Investors Meet in Chennai last year, VinFast inked an MoU with the Tamil Nadu government for an investment of ₹16,000 crore in multiple phases for manufacturing EVs in Thoothukudi.

Speaking to The Hindu in Hanoi recently, Mr. Chau said, “We visited six States and inspected 15 locations before we decided to select Thoothukudi. Since we want to serve not only the domestic market, but also the external market, we need to be located very close to a seaport and an airport. Thoothukudi satisfies these requirements.”

Mr. Chau said Tamil Nadu had an impressive pool of talent. VinFast Vietnam employed a large number of Indian engineers, the majority of whom were from Tamil Nadu, he said, adding that the State was also a hub for suppliers.

“The government of Tamil Nadu has been extremely helpful. Whenever we propose anything, they make the effort and satisfy our requirements. We cannot build a factory in 15 months without the kind, continuous and generous support from the government of Tamil Nadu…from Chief Minister M.K. Stalin himself, his Cabinet, and especially Minister for Industries T.R.B. Rajaa. So, that is why…[though] we were approached by many State governments, we made a final call to invest in Tamil Nadu,” he said.

Pham Sanh Chau with Tamil Nadu Chief Minister M.K. Stalin and Industries Minister T.R.B. Rajaa at the groundbreaking ceremony for the Thoothukudi plant in February 2024.
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Responding to Mr. Chau’s comments, Mr. Rajaa said, “VinFast’s integrated factory in Thoothukudi has laid the foundation for a new green industrial cluster in south Tamil Nadu. Along with the solar cell and green hydrogen projects, this factory will bring renewed economic vigour to the region.”

According to him, the VinFast project is creating high-quality jobs for local youth through targeted upskilling under Naan Mudhalvan, while also enabling a thriving MSME ecosystem to support the EV value chain.

“This cluster approach is focused on sustainability and inclusivity. It aims to transform Thoothukudi into a next-generation manufacturing and export hub. With its proximity to the port, the region is set to become a gateway for exports,” he added.

According to him, Tamil Nadu’s focus remains on equitable industrial development, and VinFast’s investment stands as an example of how the government is creating global opportunities across the State, ensuring distributed growth.

(The writer was in Hanoi on the invitation of VinFast).