Chinese automaker BYD will reportedly develop an electric vehicle production base in Phu Tho, Vietnam, to supply both the local and Southeast Asian markets.
BYD Chairman Wang Chuanfu told Vietnamese Deputy Prime Minister Tran Hong Ha at the latest meeting in Hanoi that it plans to invest in EV production in the country, VnExpress reported citing the Vietnam Government Portal.
BYD to create a local EV supply chain
The report also noted that the Chinese tech giant would develop a local ecosystem for EV production. That said, BYD Chairman Wang asks for the government’s support to offer “favorable conditions” to accelerate the investment.
As mentioned, BYD aims to use the planned Vietnam production plant to build EVs for the Southeast Asian market.
The Vietnamese Deputy Prime Minister apparently appreciated BYD’s move to pursue Vietnam for its new production plant, saying it should produce top-notch products that would compete in the global market.
According to Bloomberg, the news was also verified by a BYD spokeswoman via email. However, she did not disclose any details regarding the investment.
With this major investment, BYD will pose a direct threat to the local automaker VinFast, which started selling EVs in 2019.
Aggressive EV push
Apart from Vietnam, BYD has also been eyeing the Philippines and Indonesia for a new EV production plant. In fact, it is now developing the company’s first-ever foreign production plant in Thailand.
See Also:
- BYD is building a new factory as more EVs are entering Australia
- BYD again leads Thailand’s EV sales in February, while Tesla is catching up
- Southeast Asia lags in terms of electric vehicle adoptions
- BYD plans to build another $1.2 billion EV battery plant in China, per filings
- Tesla, BYD to invest in EV production plants in Indonesia
In hindsight, BYD reported global sales of 210,295 EVs in April, almost doubling its 2022 record. Notably, the majority of this figure is attributable to the automaker’s Chinese production. Nonetheless, it is now accelerating its expansion efforts in Asia, Europe, and Latin America, per Bloomberg.
The report further noted that BYD shares increased over 2% on May 8 in HK following the news. So far this year, its shares reportedly surged 25%.
