- VinFast Auto Ltd. ( VFS ) plans to invest as much as $1.2 billion in Indonesia “in the long-term” as it looks to expand in Southeast Asia after entering the US auto market.
Vietnamese electric vehicle manufacturer VinFast has outlined plans to broaden its presence in seven additional Asian markets, including Indonesia. In Indonesia, VinFast intends to commence deliveries in the coming year and establish a production facility by 2026. The company, primarily controlled by Vietnam’s wealthiest individual, Pham Nhat Vuong, plans to invest approximately $1.2 billion in the Indonesian market over the long term, with up to $200 million allocated for the Indonesian plant, targeting an annual production capacity of 30,000 to 50,000 units by 2026. Indonesia is actively attracting global EV manufacturers due to its abundant nickel resources, a crucial component in EV batteries. Despite this, EVs represent less than 1% of the country’s total vehicle population.
The Indonesian facility will be VinFast’s third, alongside its main plant in Haiphong, Vietnam, and a newly planned facility in North Carolina, set to begin operations in 2025. VinFast, established in 2017, has unveiled ambitious international expansion plans. The company also intends to establish a presence in India, Malaysia, the Middle East, Africa, Latin America, and expand further into Europe, targeting between 40 and 50 potential markets. VinFast plans to establish its own distribution networks and potentially open showrooms in these regions.
VinFast recently achieved a Nasdaq listing with a valuation exceeding $85 billion, surpassing Ford on its listing day. The company’s entry into the American market coincides with competitive pricing pressures in the EV sector, led by industry leader Tesla and various Chinese companies. VinFast, yet to turn a profit, aims to raise capital from global investors over the next 18 months. Shares of VinFast’s parent company, Vingroup, were down 0.33% at the time of this report.