VinFast, the Vietnamese automaker, has commenced construction of a new electric vehicle (EV) factory in Indonesia, marking a significant step in its international growth strategy.
“The construction of our new EV factory in Indonesia represents a strategic investment for VinFast in expanding our production capabilities,” stated a spokesperson for VinFast.
Located in Subang, West Java, approximately 125 km southeast of Jakarta, the $200 million facility will boast an annual production capacity of 50,000 vehicles. Unlike simple assembly plants, VinFast plans to establish a comprehensive manufacturing hub with essential facilities including a body shop, paint shop, general assembly shop, and vehicle testing facility.
VinFast aims to introduce locally produced right-hand drive models to the Indonesian market starting from the fourth quarter of 2025. The company’s current lineup includes models like the VF e34 and VF 5, with plans to add the VF 3, VF 6, and VF 7 to its Indonesian portfolio.
“In addition to Indonesia, VinFast is strengthening its presence in Asia with a new EV plant in India, enhancing our commitment to regional markets,” the spokesperson added.
The Indian facility, located in Thoothukudi, Tamil Nadu, spans 400 acres and will initially assemble cars from imported knocked-down kits, with future plans for full-fledged production aiming at an annual capacity of 150,000 units.
However, VinFast has adjusted its timeline for its US operations. Originally slated for production commencement in July 2024, the start has been postponed to 2028 due to strategic considerations.