Shulou(Shulou.com)11/24 Report--

Thank you CTOnews.com netizen Mr. Aviation for the clue delivery! CTOnews.com January 14 news, according to Reuters reported that three people familiar with the matter said that Chinese electric vehicle (EV) manufacturer BYD Automobile Co. plans to build a factory in Vietnam to produce auto parts, a move that will deepen its supply chain in Southeast Asia in preparation for global expansion.

One of the people familiar with the matter said that the investment in northern Vietnam will exceed 250 million US dollars (currently about 1.685 billion yuan), thus expanding the business of parent company BYD in Vietnam, where its electronics division produces solar panels.

The automaker sold more electric vehicles than rival Tesla in China last year and has been expanding elsewhere in Asia, including Singapore and Japan, as well as Europe.

CTOnews.com understands that, like Tesla, BYD controls most of its supply chain, including battery production, a strategy that sets it apart from established automakers.

BYD announced last September that it would build an electric vehicle assembly plant in Thailand with an annual capacity of 150,000 vehicles from 2024.

By investing in Vietnam, BYD hopes to increase capacity, control costs and diversify production from its strong demand business in China.

BYD is negotiating a site for the Vietnam plant, with construction scheduled to begin in mid-2023, sources said.

It is unclear what parts BYD will produce in Vietnam and whether it will include batteries or battery packs.

BYD is seeking to lease 80 hectares (200 acres) of industrial land to more than double its footprint in Vietnam, where its electronics division leases 60 hectares, sources said.

Sources said the Vietnamese factory would export parts to an assembly plant to be built in Thailand. Vietnam's business can also serve the local market, mainly by providing repair services and spare parts for BYD cars imported from China.

This will pose a direct challenge to Vietnamese electric vehicle manufacturer VinFast, which started selling cars in 2019 and plans to expand in the US and Europe.

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