VinFast Shifts Focus to Asian Markets with New Assembly Plants

Elon Musk-led Tesla's rival, VinFast, the Vietnamese electric vehicle manufacturer, is making a strategic pivot towards Asian markets. The company announced plans to establish vehicle assembly facilities in India by the end of June and in Indonesia by October. This move marks a significant shift from its previous focus on American expansion.

Strategic Pivot Amidst Challenges

VinFast, which continues to operate at a loss, had concentrated on expanding its presence in the United States. However, delayed progress and uncertainties surrounding U.S. tariffs have prompted the company to alter its course. "In the near future, apart from the Vietnamese market, we will focus more on Indonesia, India, and the Philippines markets," stated Pham Nhat Vuong, CEO of VinFast.

Investment and Production Goals

Last year, VinFast reached an agreement with Tamil Nadu state in India, targeting an investment of up to $2 billion. The initial five-year commitment is $500 million, with the facility expected to produce up to 150,000 vehicles annually. Similarly, construction of an assembly facility in Indonesia began in July last year, with operations set to commence in October.

Tesla's Interest in India

Meanwhile, Tesla, under Elon Musk's leadership, views India as a highly attractive market but has expressed concerns over the 100% import duties on vehicles, which deter potential buyers. The company is carefully assessing the optimal timing for its entry into the Indian market, which is the third-largest automotive market globally.