Construction starts on $200 million VinFast EV assembly plant in Indonesia

July 16, 2024 | 19:18
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VinFast officially broke ground on its new electric vehicle (EV) assembly plant in Subang, West Java, Indonesia, on July 15.
Construction starts on $200 million VinFast EV assembly plant in Indonesia

The new VinFast assembly plant, located in the emerging industrial hub of Subang, has an initial investment of around $200 million. The facility will have an annual capacity of 50,000 vehicles and will house several key production areas such as the Body Shop, General Assembly Shop, Paint Shop, and testing area.

Scheduled to commence operations in the fourth quarter of 2025, the plant will produce right-hand drive versions of VinFast's e-SUV models, including the VF 3, VF 5, VF 6, and VF 7, for the Indonesian market.

The project is anticipated to generate thousands of local jobs, increase the skilled labour rate, and contribute significantly to the economic and social development of the local community. It is also poised to make a substantial impact on promoting green transportation in Indonesia.

General H. Moeldoko, Chief of Presidential Staff of the Republic of Indonesia, said, "VinFast's presence here will not only have a positive impact on the regional economy but will also provide new job opportunities and improve the welfare of the surrounding community. The Indonesian government heavily encourages foreign investment, especially in the automotive industry sector. We believe that VinFast's presence will bring technological innovation and knowledge transfer that is much needed to increase the competitiveness of the national automotive industry."

Temmy Wiradjaja, CEO of VinFast Indonesia, said, "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. It marks a key milestone in our strategy to become a leading player in one of the region's most promising EV 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 Indonesians."

In parallel with bolstering its global production capabilities, VinFast has swiftly established a robust business presence and increased brand recognition in Indonesia. The company has launched two right-hand drive electric SUV models, the VF 5 and VF e34, opened dealership stores, and implemented flexible sales policies, including its pioneering battery subscription programme.

With a long-term vision, VinFast continues to innovate and strive towards becoming a high-tech industrial leader in Southeast Asia with global influence. Despite the short-term challenges facing the electric vehicle industry, VinFast remains resolute in expanding its footprint in the region, laying a solid foundation for the irreversible growth of electrified transport.

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By Vy Bui

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