The Silicon Review ^Asia

Chinese automaker BYD Co. plans to expand into the manufacturing and assembly of electric vehicles in Vietnam, according to a statement from the Vietnamese government citing the company's chair.

The Xian-based electric vehicle manufacturer was said to be planning to build a plant in Vietnam to make auto parts, with the intention of exporting those parts to a planned assembly facility in neighbouring Thailand.

After meeting with Deputy Prime Minister Tran Hong Ha on May 5, BYD founder and chair Wang Chuanfu stated in a government statement that he anticipated Vietnam would create favourable conditions for BYD to complete the required investment procedures.

According to a government statement issued on Friday, BYD, which currently operates an assembly plant in the province of Phu Tho in northern Vietnam for the assembly of electronic components and devices, also suggested creating a local supply chain.

VinFast, a Vietnamese EV manufacturer that started selling cars in 2019 and intends to grow in the United States and Europe, would face a direct challenge from BYD's presence.

BYD announced last September that it would construct an EV assembly plant in Thailand with a capacity of 150,000 vehicles annually starting in 2024, with backing from Warren Buffett's Berkshire Hathaway.