Saw A Lot Of Potential: VinFast Asia CEO On Setting Up EV Factory In Tamil Nadu

Tamil Nadu's policies have received a big thumbs up from two investors in the state, including an EV manufacturer, which said it could scout land and set up a factory in a matter of months.

Speaking at the NDTV Tamil Nadu summit on Friday, Pham Sanh Chau, MD and CEO of Vingroup Asia, said the company decided to set up a VinFast EV plant in Tuticorin because they saw a lot of potential in the state.  

Asked how long it took to set up the factory, Chau said, "We scouted within one month and then we met the government of Tamil Nadu, and we made a decision. One month after that, we signed a Memorandum of Understanding. Immediately after signing, we broke ground to start the construction of the factory. And, thanks to that, we were able to complete the construction within a short period of 15 months."

K Moses, Managing Director of Allison Transmission, said his company has been in Tamil Nadu for two decades and Guidance Tamil Nadu, which promotes investment and single window facilitation, has been a big help. 

"When we recently wanted to go in for a big expansion, I went to the Guidance office and met a young team that is much more aggressive than even us. I saw them following up late at night, even on Saturdays and Sundays," he said. 

"Tamil Nadu is the best investment destination in terms of people, compliance, infrastructure, policy decisions, and in terms of the local state government being very passionate and dedicated in making sure that we are comfortable in this place so we invest further," he said.

Darez Ahamed, MD and CEO of Guidance Tamil Nadu, said the state's real differentiators are human resources, infrastructure and logistical advantages. 

"Tamil Nadu's value proposition is what it brings to the table in getting the best ROI (return on investment) when an investor comes to the state... We invest in R&D and new products within the state, which can create an ecosystem and bring in the next generation of talent into the system. Employment has always been the first priority for the state whenever investments are thought of," he said.