BYD intends to manufacture electric vehicles (EVs) in Vietnam and anticipates government support, the South-east Asian country said following a May 5 meeting between Deputy Premier Tran Hong Ha and the automaker's chairman and founder, Wang Chuanfu.

According to a report on a government website late Friday after the meeting in Hanoi, Wang expects Vietnam to create "favourable conditions" for BYD to complete investment procedures and begin manufacturing EVs for sale locally and in other parts of South-east Asia. The company intends to establish a local supply chain.

A BYD spokesperson confirmed the plans to manufacture EVs in Vietnam via email. She did not provide any investment information.

BYD, China's largest EV manufacturer, is constructing its first overseas production facility in Thailand. In addition to Vietnam, the Shenzhen-based company has considered the Philippines and Indonesia for a new South-east Asia plant.

In April, the company sold 210,295 vehicles, nearly doubling the number from the previous year but only slightly higher than the previous month. While China accounts for the majority of sales, BYD has been expanding in Asia, Europe, and Latin America. Exports account for approximately 6% of its EV sales.

BYD shares rose more than 2% in Hong Kong on Monday (May 8) morning, boosted by the Chinese government's renewed pledge to support the EV sector. This year, BYD has increased by 25%.