China EV Manufacturer BYD Revises Timelines for Vietnam EV Factory, According to Industrial Park Sources

China EV (electric vehicles) Manufacturer BYD has halted its plans to build an EV factory in Vietnam, according to a manager of the industrial park where the plant would be erected during a shareholders meeting on Thursday.

The Vietnamese government declared in May that BYD had decided to locate an electric vehicle production and assembly plant in the northern province of Phu Tho. Already, BYD has a facility here that produces tablets for Apple.

According to Luong Thanh Tung, Vice Chairman of Gelex Group (GEX.HM), the entity overseeing the industrial park slated for BYD’s new factory, BYD has decided to postpone the start of construction due to strategic considerations and the current deceleration in the electric vehicle sector.

Addressing shareholders at a meeting in Hanoi, Tung stated that after protracted talks, BYD agreed to lease 100 hectares of commercial land within the Phu Ha industrial park for the creation of an electric vehicle manufacturing facility.

However, Tung reminded the audience that, due to the delays, all parties were now looking for an appropriate timeline to begin the project. BYD’s headquarters in China did not immediately respond to Gelex’s allegations on Thursday.

The expected sluggishness in the worldwide EV market this year is due to a drop in state subsidies. The Vietnamese government’s announcement of BYD’s investment ambitions came after BYD Chairman Wang Chuanfu visited the nation in May. Notably, the announcement did not identify a start date or investment level for the project.

During a meeting with Vietnam’s Deputy Prime Minister Tran Hong Ha in May, Chuanfu stressed his wish for “favourable conditions to finalise investment procedures,” according to the Vietnamese government.

In addition to developing an EV factory in Thailand, BYD plans to establish EV facilities in Indonesia. Notably, the business sold more than 3 million electric vehicles worldwide last year, which included both battery EVs and plug-in hybrids.

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