Policymaking lags industry pace, says VinFast Asia CEO Pham Sanh Chau

VinFast CEO Pham Sanh Chau said India's EV policy was notified after the firm had begun production, leaving it ineligible despite investments since March 2024

The process of policymaking does not match the speed at which companies move, said Pham Sanh Chau, CEO of VinFast Asia. He noted that while firms like VinFast are already rolling out cars from its Indian factory, the government has only just notified the electric vehicle (EV) investment scheme that was drafted when the Vietnamese company first considered entering the country.

 

Last year, on March 15, the Ministry of Heavy Industries notified the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), but detailed guidelines followed only on June 2, 2025 -- more than a year later -- underscoring the lag that Chau pointed out between the pace of industry and the speed of policymaking.

 

Chau said: “I was involved in that policy from day one. I talked to the minister and various other secretaries about it. That policy was drafted when we were considering entering into India. Now, our cars are rolling out from our Indian factory and that policy has just been completed (notified).”

 

“There is a lag. We are no more qualified for it. That policy is for attracting new foreign investors. We have already invested here. I don’t know which company is showing interest in doing investment under that scheme,” he stated during a select media roundtable after launching VinFast’s first two cars for the Indian market on Saturday.

 

When asked if he thinks that prior investments should also be considered under the scheme, he replied: “Of course. We came to India in March 2024. We started our investments from then. That can be taken into consideration. The process of policymaking does not match with the speed the companies are moving. They (companies) move much faster than the pace at which the government makes the policy.”

 

 “I suggest that they consider our investments done in the past two years or they can make certain provisions for compensation to encourage existing investors to continue to invest in India,” he added.

 

The SPMEPCI policy seeks to attract both global and domestic investment into India’s EV sector by offering concessional 15 per cent Customs duty for five years on a limited number of imported electric cars with a minimum CIF (Cost, Insurance, and Freight) value of $35,000 to companies committing a minimum investment of ₹4,150 crore in local manufacturing.

 

The application portal for the scheme was launched on June 24, following the detailed guidelines issued on June 2, and remains open till October 21, allowing interested manufacturers to apply via the digital platform.

 

The Vietnamese automaker on Saturday launched the electric sports utility vehicle VF6 at a starting price of ₹16.49 lakh (ex-showroom) and the electric SUV VF7 at a starting price of ₹20.89 lakh (ex-showroom).