Vietnamese electric vehicle maker VinFast plans to increase its investment in Indonesia to as much as $1 billion, the head of its local unit said on Monday, as the company expands manufacturing capacity in Southeast Asia’s largest economy.
The comments came as VinFast Indonesia inaugurated its first manufacturing plant in the country, located in Subang, West Java, with an initial production capacity of 50,000 vehicles per year.
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“VinFast will continue to increase its investment to $1 billion, with an increase in production capacity to 350,000 per year,” Kariyanto Hardjosoemarto, chief executive of VinFast Indonesia, told Reuters.
Kariyanto said the automaker has invested about $300 million in Indonesia so far. The Subang facility has recently begun trial production and is expected to reach full capacity in the first quarter of next year, he added.
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He said VinFast’s total investment in Indonesia could eventually exceed $1 billion, depending on future market demand.
VinFast has been stepping up its overseas expansion as it seeks to build a manufacturing and sales footprint beyond Vietnam, with Southeast Asia seen as a key growth region for electric vehicles.
