Vietnamese electric vehicle firm, VinFast announced that it has commenced its work on setting up a fresh integrated plant in Tamil Nadu’s port city, Thoothukudi and hopes to complete it within 15 months and start with production.

A massive ceremony was inaugurated for the plant which was presided by Tamil Nadu’s Chief Minister MK Stalin, including senior executives from the Vietnamese EV player.

The highlight here was that VinFast’s plant was reported to have achieved a crucial moment regarding a large scope of the industrial cluster in the southern part of the state.

This plant is believed to dish out the production of a sturdy vendor ecosystem surrounding the VinFast factory with a cluster of suppliers and associated businesses.

"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”, added TN Industries Minister.

"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."

After the partnership pledged to invest about $ 2 billion starting this year with the signing of the Memorandum of Understanding (MoU) during the Tamil Nadu Global Investors, this groundbreaking project takes place. In those funds, $ 500 million is said to be poured into the integrated EV plant’s first phase for the next five years.

The TN Minister, on behalf of the state’s government, conveyed that it was keen on bolstering Tamil Nadu’s position as India’s car capital, specifically on the EV industry component.

"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."