Chinese electric vehicle (EV) giant BYD intends to establish an assembly plant in Vietnam, expanding its presence beyond Thailand and Indonesia to cater to the rising demand for affordable EVs in Southeast Asia.

During a recent visit to China, National Assembly Chairman Vuong Dinh Hue engaged in discussions with BYD leadership on April 9.

Hue commended the company on its global achievements and embraced its forthcoming investment plan. He affirmed the National Assembly’s commitment to facilitating the effective operations of foreign enterprises, including those from China, within Vietnam.

BYD has already made substantial investments, with a $270 million factory producing tablets in the northern province of Phu Tho since 2021, employing over 9,000 individuals.

Reuters reported last year that BYD was eyeing the construction of a new factory in Vietnam dedicated to manufacturing vehicle components.

Frost & Sullivan, a global research and consulting firm, predicts that the Southeast Asian EV market will experience robust growth, with an anticipated compound annual growth rate of 28.3% from 2021 to 2025, reaching 1.9 million units by 2025.

Headquartered in Shenzhen, Guangdong province, China, BYD was established in 1995 as a battery manufacturer before venturing into automobile production in 2003. Over the years, it has diversified into sectors such as mobile phone assembly and solar cell manufacturing.

BYD ranks among the world’s largest electric vehicle manufacturers, capturing slightly over 17% of the market share, trailing closely behind Tesla, which holds just under 20%.