Chinese electric vehicle maker BYD is set to expand its manufacturing operations to Vietnam, according to a statement by the Vietnamese government. The announcement follows a meeting between BYD's founder and chair, Wang Chuanfu, and Deputy Prime Minister Tran Hong Ha on May 5. While no details were provided regarding the amount of investment BYD plans to make, Wang expressed his hope that the Vietnamese government will create favorable conditions for the company to complete investment procedures.
BYD, which currently runs a factory in Vietnam that assembles electronic devices and parts, has proposed forming a local supply chain to support its expansion plans. This move is expected to pose a direct challenge to VinFast, a Vietnamese EV maker that began selling cars in 2019 and has plans to expand into the United States and Europe.
Last September, BYD announced plans to build an EV assembly plant in Thailand with an annual capacity of 150,000 cars from 2024. The company is also backed by Warren Buffett's Berkshire Hathaway, which recently sold 1.96 million BYD shares for HKD 462.09 million ($58.9 million). This reduced Berkshire's holdings in BYD's issued H-shares to 9.87% from 10.05%.