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VIETNAM, 9 July 2023: Foxconn, the contract electronics manufacturer, is investing USD 200m in Vietnam to develop electric vehicle (EV) components. The new plant, located in the northern part of the country, will focus on the production of EV chargers and related components. It is expected to start production from January 2025.
Foxconn’s investment in Vietnam is part of a broader strategy to expand its presence in the EV market. The company has already announced plans to set up EV manufacturing plants in the United States and Europe.
Foxconn’s selection of Vietnam as a location for its EV component plant is significant. The country has become a major hub for EV manufacturing in recent years, thanks to its low labour costs and favourable government policies.
Foxconn’s investment in Vietnam is a sign of the growing importance of the EV market. The company is betting big on EVs, and its investment in Vietnam is a way to secure a foothold in a market that is expected to grow rapidly in the coming years.
Vietnam is one of the fastest-growing markets for electric vehicles (EVs) in Southeast Asia. In 2023, EV sales in Vietnam are expected to reach 20,000 units, up from 10,000 units in 2022. The Vietnamese government is supportive of the development of the EV industry and has announced a plan to phase out the sale of gasoline-powered vehicles by 2045.
The most popular EV models in Vietnam are small cars and scooters, which are relatively affordable and well-suited to the country’s traffic conditions. The EV market in Vietnam is still in its early stages of development, but the government’s support and the growing demand for EVs suggest that the market is poised for rapid growth in the coming years.
Key Takeaways
- Foxconn is investing USD 200m in Vietnam to develop EV components.
- The new plant will focus on the production of EV chargers and related components.
- The plant is expected to start production from January 2025.
- Foxconn’s investment in Vietnam is part of a broader strategy to expand its presence in the EV market.
- Vietnam has become a major hub for EV manufacturing in recent years.
- The EV market is expected to grow rapidly in the coming years.
