BYD Co., China’s leading electric vehicle (EV) manufacturer, plans to produce electric vehicles in Vietnam and expects support from Vietnam’s government to do so.
The news came after a May 5 meeting between Vietnam’s Deputy Premier Tran Hong Ha and Wang Chuanfu, the Shenzhen-based automaker’s chairman and founder.
Wang expects Vietnam to create “favorable conditions” for BYD to complete investment procedures so it can quickly start making EVs to be sold locally and in other parts of Southeast Asia, according to a report on a government website after the meeting in Hanoi.
BYD, which currently runs a factory to assemble electronic devices and parts in the northern Vietnamese province of Phu Tho, also proposed forming a local supply chain, according to the government statement.
BYD is building its first overseas production facility in Thailand. The Shenzhen and Hong Kong-listed company has been considering the Philippines and Indonesia for a new Southeast Asia plant, in addition to Vietnam.
The company sold 210,295 vehicles in April, about double the number from a year earlier but only slightly higher than the previous month.
While most sales come from China, BYD has been expanding overseas in Asia, as well as Europe and Latin America. Exports account for about 6% of its EV sales.