VinFast Opens Electric Vehicle Manufacturing Facility in Indonesia

Strategic Investment in Southeast Asia's EV Market

VinFast, a Vietnamese electric vehicle manufacturer, has officially inaugurated its first manufacturing facility in Southeast Asia, located in Subang, West Java, Indonesia. The plant was built in an impressive 17 months, demonstrating the company's execution capabilities and commitment to its global expansion strategy ¹

Production Capacity and Job Creation

The facility spans 171 hectares with an initial production capacity of 50,000 units per year. In the first phase, the plant will employ approximately 1,700 workers, contributing to Indonesia's economic development. The company has invested $300 million (approximately Rp 4.8 trillion) in this project, marking one of the significant foreign investments in Indonesia's automotive sector ²

Technological Infrastructure and Future Plans

The manufacturing facility is designed to be comprehensive, with plans to include a test track for vehicle testing. VinFast has already completed the recruitment and training process for the initial workforce, with managerial staff trained in Vietnam and technical personnel trained on-site by Vietnamese experts ²

Market Impact and Pricing Strategy

The establishment of this local manufacturing facility is particularly significant as Indonesia prepares to end incentives for imported electric vehicles in 2026. By producing locally, VinFast aims to maintain price stability for its models, particularly the VF e34 and VF 7, in the Indonesian market ³

Economic and Industrial Implications

Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, noted that VinFast is one of Vietnam's largest investors in Indonesia. The company is also planning additional investments of $1 billion (Rp 17 trillion) to increase production capacity from 50,000 to 350,000 units per year. This expansion underscores VinFast's long-term commitment to Indonesia's economic growth and its electric vehicle ecosystem development ²