Vietnamese electric automaker VinFast has just kicked off the construction of its new electric vehicle assembly plant in Indonesia, accelerating its expansion in Southeast Asia.
VinFast breaks ground on Indonesian EV assembly plant
According to the press release, VinFast officially broke ground on its new electric vehicle factory in Indonesia on July 15, 2024.
VinFast has started the construction at its upcoming domestic production facility in a developing industrial area in Subang, West Java, about 125 km southeast of the national capital, Jakarta.
VinFast is about to launch a full-fledged EV production facility in Indonesia, not a mere SKD/CKD facility.
“The groundbreaking event, coming just months after VinFast’s official market debut in Indonesia, highlights the company’s strategic expansion and competitive drive in the region, marking a key milestone in our strategy to become a leading player in one of the region’s most promising electric vehicle markets. We believe this project will demonstrate VinFast’s long-term commitment to Indonesia, boosting the electric vehicle sector, supporting economic growth, and enhancing the quality of life for Indonesian.”
Mr. Temmy Wiradjaja, CEO of VinFast Indonesia
VinFast’s $200M EV factory
VinFast committed to invest approximately $200 million in the upcoming domestic electric vehicle factory in Subang.
The Indonesian plant is expected to hit an annual production capacity of 50,000 electric vehicles. It will consist of several key manufacturing lines, including Body Shop, General Assembly Shop, Paint Shop, and testing area, among others.
To be specific, the new facility will manufacture right-hand drive versions of the following VinFast EVs:
Impact
VinFast expects its investment in an Indonesian electric vehicle factory to generate thousands of job prospects for the local workforce. In effect, it will boost the community’s skilled labor rate and aid economic and social development.
Considering that Indonesia is one of Southeast Asia’s most promising electric vehicle industries, VinFast also anticipates the move to solidify its footprint in the region.
More importantly, VinFast’s investment can also accelerate the adoption of clean mobility in the Southeast Asian country.
VinFast has already launched its VF 5 and VF e34 right-hand drive electric SUVs in the Indonesian market. It has also deployed dealership stores and imposed flexible sales policies, such as its pioneering battery subscription program. All these efforts are part of its strategy to advance in the rapidly growing global electric vehicle market.
