Foreign investment sees a 3.5-fold increase in the initial seven months
VinFast, a Vietnamese automobile manufacturer, has made a significant move in its global expansion strategy by inaugurating its first overseas electric vehicle (EV) assembly plant in Thoothukudi, Tamil Nadu, India. The plant, which began commercial production in August 2025, is a key part of VinFast's strategic shift towards cost-efficient growth markets.
The plant, spread over a 400-acre site, initially has an assembly capacity of 50,000 vehicles per year, with plans to scale up to 150,000 units annually in the near future. The facility currently assembles VinFast's VF6 and VF7 electric SUVs and targets export markets across South Asia, the Middle East, and Africa, having already received orders from countries like Nepal, Sri Lanka, and Mauritius.
This $500 million initial investment is part of a broader $2 billion planned investment in India by VinFast. The company expects this facility to play a significant role in it reaching its 2025 sales target of 200,000 vehicles and contribute towards its longer-term production goal of 1 million vehicles globally.
The Indian EV plant represents a major pivot towards Asia for VinFast, following the company's decision to halt its North American and European expansion plans due to high logistical costs and accumulated losses. This move is indicative of Vingroup's ambitions to bring multiple business sectors, including green energy and smart city technologies, to India.
In the context of Vietnam’s overall overseas ventures, VinFast’s move highlights a broader trend of Vietnamese conglomerates expanding their global footprint through strategic investments. In the first seven months of 2025, Vietnamese firms invested in 105 overseas ventures, with a total investment of $398.9 million. Laos received the most Vietnamese investments with $150.3 million, accounting for 28.4% of the total.
The production and distribution of electricity, gas, hot water, steam, and air conditioning reached $111.2 million, accounting for 21% of the total investment. Transport and warehousing received $109.1 million, making up 20.6% of the total investment. The wholesale and retail trade and motor vehicle and motorcycle repair sector received $78.1 million, representing 14.8% of the total investment.
This factory is not only a milestone for VinFast but part of a larger outbound investment wave by Vietnamese firms seeking regional and international manufacturing presence and export capabilities. The total investment in overseas ventures is 3.2 times higher than the same period last year, with 20 existing projects having adjusted their investment capital with an additional $129.1 million, 4.5 times higher on-year.
This highlights VinFast's shift to leveraging regional growth markets and cost-effective production bases, contributing to Vietnam's rising presence in the global EV and industrial manufacturing sectors.
- VinFast's inauguration of its first electric vehicle assembly plant in India is part of a broader $2 billion investment plan in the finance sector, aiming to contribute towards its longer-term production goal of 1 million vehicles globally, including in the business sector.
- In the business world, the Indian EV plant represent a significant move for VinFast, as it is not only a milestone for the company but also a strategy to tap into growth markets, leveraging cost-efficient manufacturing bases in Asia and expanding its presence in the global EV industry.
