China’s BYD eyes EV production plant in Vietnam, says government

With its Thailand plant slated to open next year, BYD plans a second factory to boost production in Southeast Asia.

Chinese automaker BYD is looking to set up a new manufacturing plant for electric vehicles (EV) in Vietnam as it ramps up production in Southeast Asia.

The planned factory will be used to manufacture and assemble EV units that will be sold in the country and the rest of Southeast Asia, according to Wang Chuanfu, founder, chairman and chief executive officer of BYD, during his meeting with Vietnamese deputy prime minister Tran Hong Ha on 5 May.

Wang expects Vietnam to “create favorable conditions to complete investment procedures” and quickly start operations based on the government statement released after their meeting in Hanoi.

While the company did not disclose the amount of investment involved and the location of the factory, the statement said BYD is also planning to form a local supply chain for electric car projects.

“The expansion of activities from electronic manufacturing to electric car production will be a milestone, laying the foundation for BYD Group's new investment and cooperation ideas in Vietnam,” Tran was quoted in the release.

The Shenzhen-based firm replaced American tech giant Tesla as the best-selling EV brand in 2022 with 1.86 billion units sold globally last year, more than triple its sales in 2021. 

The Vietnam facility will mark BYD’s second EV factory in Southeast Asia where it is also setting up a production plant in Thailand. Slated to open in 2024, the upcoming facility is expected to produce 150,000 units annually for export to Southeast Asia and Europe.