“Chinese Electric Vehicle Giant Chooses Vietnam as Location for New Plant”
BYD, the largest electric vehicle manufacturer in China, has announced its decision to build a new factory in Vietnam. The company has chosen the Phu Ha Industrial Zone, located in the Phu Tho province, as the site for its investment and manufacturing operations. This development was shared by Mr. Luong Thanh Tung, the Deputy Chairman of the Board of Directors at Gelex Group, during the annual board meeting held on March 28th.
Plans for a New Facility in Vietnam
After a series of negotiations, Viglacera, a subsidiary of Gelex, has allocated 100 hectares of land at the Phu Ha Industrial Zone for BYD to lease and construct its electric vehicle manufacturing plant. However, due to current market conditions and the slowdown in the electric vehicle industry, the construction of the 100-hectare facility is yet to be implemented.
Both parties are currently seeking the most opportune time to commence the project. BYD, on the other hand, has yet to comment on Mr. Luong Thanh Tung’s statement.
BYD’s Ambitious Plans
According to Reuters, at the beginning of 2023, BYD, the largest electric vehicle manufacturer in China, announced its plans to establish a plant in Vietnam for the production of automotive components. During a meeting with Deputy Prime Minister Tran Hong Ha in May 2023, Mr. Wang Chuanfu, the Chairman of BYD, expressed his desire for this project and hoped for a favorable investment environment to facilitate the necessary procedures. Additionally, BYD intends to establish a network of support industries for its electric vehicle project.
Phu Ha Industrial Zone: A Strategic Choice
The Phu Ha Industrial Zone is the same location where BYD has invested in a plant for manufacturing tablets. In fact, this facility has been operational since August 2022, with a registered capital of USD 269 million. In 2023, the Chinese electric vehicle giant increased its capital by nearly USD 184 million at this plant for the production of electronic components.
In the fourth quarter of 2023, BYD surpassed Tesla in global electric vehicle sales, with over 525,400 units sold, making it the world’s largest electric vehicle manufacturer in terms of sales volume. Throughout the year 2023, BYD achieved global sales of 3.02 million vehicles, a 62% increase compared to 2022.
The company’s net profit saw a remarkable increase in 2023, reaching CNY 30.04 billion (approximately USD 4.2 billion), nearly double that of the previous year. Moreover, BYD’s stock listed on the Hong Kong exchange recorded a 3.9% increase over the past 12 months and a staggering 357% increase over the past five years.
Expanding Beyond China
BYD is currently constructing its first overseas electric vehicle factory in Thailand and has plans for another facility in Indonesia.
Established in 2003, BYD has become the largest electric vehicle manufacturer in China. While 90% of its sales come from the domestic market, the company also has a significant presence in various international markets, including Thailand, where it is the largest player. BYD offers a range of 10 products, from low-floor sedans to high-riding SUVs. In Southeast Asia, BYD has already sold vehicles in countries such as Thailand, Indonesia, Singapore, and the Philippines.
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References: Reuters, SCMP