VinFast, the Vietnamese electric vehicle (EV) manufacturer, has unveiled its ambitious plans to enter the Indonesian market by 2024 and establish a production facility by 2026. This significant move comes as part of VinFast's broader strategy to penetrate the Southeast Asian automotive market.
According to reports from Reuters, VinFast has documented its intention to invest approximately $1.2 billion in Indonesia. Of this substantial sum, $200 million will be allocated towards the construction of a production plant with a projected annual capacity of 30,000 to 50,000 EVs.
Indonesia, a country of 270 million people and one of Southeast Asia's largest economies, is trying to attract global electric vehicle manufacturers. This country has an abundant supply of nickel, a key component in producing electric vehicle batteries.
Le Thi Thuy, CEO of VinFast, commented on the favorable conditions in Indonesia, stating, "Indonesia's thriving battery manufacturing industry is one of the factors boosting the EV industry in the Southeast Asia region. A stronger EV industry in the region will support our growth." Thuy further emphasized the robust regional supply chain, with easy access to production materials from neighboring countries such as Malaysia and Thailand.
VinFast's expansion plans extend beyond Indonesia, with intentions to establish facilities in India, Malaysia, the Middle East, Africa, Latin America, and Europe. The company is set to open distribution centers and showrooms in these regions, signaling its commitment to global expansion.
Furthermore, on August 15, VinFast successfully secured a listing on the NASDAQ stock exchange in the United States. As of September 12, the company's market capitalization reached $39.8 billion, positioning it as the 14th largest player in the global automotive industry.
Presently, VinFast produces EVs at its Haiphong City facility in northern Vietnam and is also in the process of constructing an EV production plant in North Carolina, USA, set to commence operations in 2025.