China's largest EV maker BYD to start car manufacturing in Vietnam - PingWest

China's largest EV maker BYD to start car manufacturing in Vietnam

China's largest EV maker BYD to start car manufacturing in Vietnam

4 hours ago

Chinese automaker BYD plans to expand into electric vehicles (EV) manufacturing and assembly in Vietnam, according to a Vietnamese government statement citing the company's chair.

The statement came out after Vietnamese Deputy Prime Minister Tran Hong met Wang Chuanfu, Chairman of BYD, on May 5. According to the statement, the Chinese giant will expand its investment in the production and assembly of EVs in Vietnam, with the goal of supplying the local market and exporting to other Southeast Asian countries.

Previously, BYD, as a supplier of Apple, had established an iPad production line in northern Vietnam and started commercial production in June last year.

"The expansion of activities from electronic manufacturing to electric car production will be a milestone, laying the foundation for BYD Group's new ideas for cooperation and investment in Vietnam," the Prime Minister said in the statement.

Compared with other markets in Asia, Vietnam's car ownership rate remains low at about 5.7% in 2020. According to a report by the International Trade Administration, that figure is expected to increase to 9% by 2025 and 30% by 2030, making Vietnam, with a population of 100 million, one of the countries with the fastest-growing demand for passenger vehicles at a 10.5% growth rate.

BYD is aggressively expanding its vehicle production capacity overseas, especially in Southeast Asia. In March, it began construction of a factory in Thailand that will have an annual capacity of 150,000 electric cars when it is completed in 2024. Besides Vietnam, the Shenzhen-based company has been considering new factories in the Philippines and Indonesia.

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