Elon Musk-led Tesla’s rival VinFast, the Vietnamese electric vehicle manufacturer, intends to establish vehicle assembly facilities in India by June’s end and in Indonesia in October. Pham Nhat Vuong, the CEO of VinFast made this announcement on Thursday signalling the company’s strategic pivot towards Asian markets.
VinFast, which continues to operate at a loss, had previously concentrated on American expansion. However, due to delayed progress in the United States and additional uncertainties surrounding U.S. tariffs, the firm has altered its strategic direction, according to a Reuters report.
“In the near future, apart from the Vietnamese market, we will focus more on Indonesia, India, and the Philippines markets,” Pham Nhat Vuong informed Vingroup shareholders.
“At the moment, VinFast is not planning to boost sales in the United States, Canada, and the European Union due to high logistics fee,” he further stated.
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VinFast reached an agreement with Tamil Nadu state last year, targeting an investment of up to $2 billion. The initial five-year commitment stands at $500 million, with the facility expected to produce up to 150,000 vehicles annually.
The company initiated construction of an assembly facility in Indonesia in July last year. Vuong confirmed on Thursday that this facility would commence operations in October, aligning with previously announced plans.
Meanwhile Tesla, under Elon Musk’s leadership, considers India a highly attractive market but has expressed concerns over the 100% import duties on vehicles, which creates hesitation among potential buyers. According to CFO Vaibhav Taneja, the company continues to assess the optimal timing for its Indian market entry.
The American electric vehicle manufacturer has consistently shown interest in establishing operations in India, which ranks as the third-largest automotive market globally. However, the substantial import duties, which CEO Elon Musk identifies as among the highest worldwide, continue to present a major challenge.