Vietnam-based electric vehicle manufacturer VinFast, which recently formalised its India entry plans by commencing work on a vehicle production facility in Tamil Nadu, will now be ably supported by a group company in accelerating its global expansion. Pham Nhat Vuong, Chairman of Vingroup Corporation and founder of VinFast, has announced the establishment of V-Green, a new company that will deal specifically with charging infrastructure for EVs.
The founder of VinFast holds 90 per cent stake in the EV charging firm. The independent entity is meant to serve as a global partner for VinFast, focusing solely on the establishment of comprehensive charging networks in markets VinFast will be present in. V-Green has been separated from VinFast, to let it focus fully infrastructure investment while allowing VinFast to prioritise international market expansion with its battery electric vehicles.
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Initially, V-Green plans to determine suitable locations and partners to expand its charging network across key international markets. Additionally, it will collaborate with other charging companies to offer services to VinFast electric vehicle owners.
In Vietnam, V-Green will oversee the operation and management of VinFast's existing charging network while investing a substantial amount (exceeding $400 million) over the next two years to enhance infrastructure. This investment – three times the original proposal – aims to establish a widespread network of charging stations in its home country.
In the long term, V-Green says it will explore opportunities to extend its charging services to other electric vehicle manufacturers after five years of operations, depending on market conditions and fundraising capabilities.
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VinFast signed an MoU with the Tamil Nadu government at the beginning of this year, outlining an initial investment of $500 million for the first five years. The construction of its EV manufacturing facility in Thoothukudi, with an annual capacity of 1,50,000 units, commenced shortly after.
Given VinFast's accelerated growth course, it is likely that the company will bring V-Green along with it when it begins its India operations.
