Thursday, June 4

Vietnamese electric vehicle maker VinFast has inaugurated a new electric vehicle manufacturing plant in Subang, West Java, marking its first production facility in Southeast Asia outside Vietnam and a major expansion of its global manufacturing footprint.

The Subang plant, built on a 171-hectare site, represents an initial investment of more than $300 million and provides annual production capacity of 50,000 vehicles, VinFast said. The company plans to expand the site in later phases to reach 350,000 vehicles per year, with total investment expected to exceed $1 billion.

See also: VinFast Scales Back North American Push as Focus Shifts Toward Asia

The inauguration ceremony was attended by Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto, West Java Governor Erwan Setiawan, Vietnamese diplomatic officials and VinFast executives. VinFast said the project aligns with Indonesia’s ambitions to develop a domestic electric vehicle industry and strengthen its manufacturing base.

Credit: VinFast

Construction of the facility was completed in around 17 months, with Phase 1 bringing integrated body welding, painting, final assembly, quality inspection and logistics operations online. The site also includes land reserved for a supplier park, intended to attract local component manufacturers and support deeper localisation in later phases.

See also: VinFast Plans To Lift Indonesia Investment To $1 Billion, Local CEO Says

VinFast said the plant will initially produce right-hand-drive versions of its VF 3, VF 5, VF 6 and VF 7 electric models for the Indonesian market. Additional models, including electric two-wheelers and an electric multi-purpose vehicle, are planned for launch from 2026.

The company has outlined an ambitious localisation roadmap, targeting more than 40% local content by 2026, 60% by 2029, and 80% from 2030 onwards, in line with Indonesian industrial policy. At full capacity, VinFast estimates the facility could create between 5,000 and 15,000 direct jobs, with additional employment generated across the supply chain.

See also: VinFast to Enter Electric Scooter and Bus Markets in India With $500 Million Tamil Nadu Expansion

The Subang plant becomes VinFast’s fourth operational manufacturing site globally, following facilities in Vietnam, the United States and India. It also supports the company’s broader strategy to establish Indonesia as a regional hub for electric vehicle production and exports.

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Dimas Mahendra is a Southeast Asia–focused EV journalist at EVMagz.com, covering electric vehicle market growth, charging infrastructure deployment, government policy, and manufacturing investment across Indonesia, Malaysia, Thailand, Vietnam, and the wider ASEAN region. His reporting examines how regulation, industrial strategy, and regional supply chains are shaping the pace of electric mobility adoption in Southeast Asia.

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