Recently, at BYD's shareholder meeting, an executive revealed that BYD has slowed down its plan to build an electric vehicle factory in Vietnam. After lengthy negotiations, BYD agreed to retain 100 hectares of commercial land in Vietnam.
After BYD Chairman Wang Chuanfu visited Vietnam in May last year, the Vietnamese government announced BYD's investment plan, but did not disclose the project's start date and investment scale. Wang Chuanfu once spoke highly of the investment and business environment in Phu Tho Province in Vietnam, expressed his hope to expand the scale of manufacturing and investment in the province, and promised to further improve technology and achieve sustainable development. In addition, he also hopes that the local government will provide favorable conditions for BYD so that the company can quickly start producing and selling electric vehicles locally and in other parts of Southeast Asia, and establish a local supply chain.
However, Vietnam's automotive market is small. According to the Vietnam Automobile Manufacturers Association (VAMA), passenger car sales in Vietnam will be 214,619 units in 2023, a 25% decrease from 2022. Luong Thanh Tung, vice chairman of Gelex Group, the industrial park that operates BYD's new factory in Vietnam, said BYD has slowed down plans to build the factory due to strategy and a slowdown in the electric vehicle market. After lengthy negotiations, BYD agreed to reserve 100 hectares of commercial land in Fu Thou Industrial Park for the construction of an electric vehicle factory. But due to delays, both parties are looking for a suitable time to launch the project.
In recent years, BYD has successively established battery factories, commercial vehicle factories, etc. overseas, and has made plans in many aspects such as raw materials, supply chain, and charging services. The company has established a global dealer network covering Europe, America, Asia and Africa.
Last year, BYD surpassed Tesla to become the global leader in new energy vehicles, but 90% of its sales came from the Chinese market and its performance in overseas markets was weak. This year, BYD has gained momentum in overseas markets. BYD's goal is to achieve overseas sales of 500,000 units in 2024 and 1 million units in 2025. BYD's chairman and president Wang Chuanfu said at a recent investor event that the company's full-year sales are expected to increase by more than 20% by 2024 compared with 2023.