VinFast to build vehicle factory in Indonesia

The Vietnamese electric car manufacturer VinFast also wants to produce vehicles in Indonesia from 2026. This was revealed via a filing with the US Securities and Exchange Commission.

According to the filing with the US SEC, VinFast plans to invest up to about US$1.2 billion in Indonesia “over the long term”, including about $150 million to $200 million to build a plant with an annual capacity of between 30,000 to 50,000 cars, which is expected to start production in 2026.

VinFast sees Indonesia as a “potential key market” for EV and battery production facilities due to the low cost and availability of domestic raw materials, the company said in the filing. In addition, the filing states that the carmaker plans to offer its e34 and VF 5 models in Indonesia next year. The VF 6 and VF 7 models are to follow at a later date.

And the manufacturer continues to forge expansion plans. The SEC notice further states that VinFast plans to enter the markets in India, Malaysia, the Middle East, Africa and Latin America as early as 2024. The business in Europe is also to be expanded and further markets opened up there.

The Indonesian plant would be VinFast’s third after its main plant was opened in the northern Vietnamese city of Haiphong and a new plant in the US state of North Carolina, which is scheduled to start operations in 2025. By 30 June 2023, VinFast said it had sold a total of 18,700 electric vehicles, mainly in Vietnam. VinFast has been listed on the US stock exchange Nasdaq since August 2023.

Indonesia is an emerging market in Asia for other manufacturers as well. For example, Tesla recently announced plans to build a battery factory there, however also then made statements that the factory would be delayed just a few weeks later. Hyundai Mobis is also planning to build a battery assembly plant in Indonesia, as is the Volkswagen Group. The South Korean cell manufacturer SK On is also involved in plans for a nickel supply chain, as well as the South Korean government itself, which has committed to making joint investments with the Indonesian government.

quotemedia.com (SEC filing), reuters.com, bnnbloomberg.ca