Heaptalk, Jakarta — Electric vehicle producer based in Vietnam, VinFast, has signed a Memorandum of Understanding (MoU) with Indonesia’s enterprises, including PT Energi Mandiri Bumi Pertiwi, PT Sumber Amarta Jaya, and PT Teknologi Karya Digital Nusa Tbk.
Through this MoU, signed at the Indonesia International Motor Show (IIMS) 2024, VinFast will supply 600 EVs from its two electric car models, VF e34 and VF 5, devoted to these corporate operations. The company’s expansion into Southeast Asia, including Indonesia, represents its global presence to bolster the EV industry worldwide.
“VinFast is honored to be a selected supplier for our esteemed corporate clients. Besides proving our competitiveness in the international market, this strategic affiliation has great potential for the EV market in the archipelago. We will constantly make innovative efforts to support Indonesian customers on their journey towards sustainable mobility for a great future for everyone,” the CEO of VinFast Indonesia, Tran Quoc Huy, affirmed.
The global expansion of VinFast is also marked by its investment of US$1.2 billion to establish an electric vehicle factory in Indonesia. This EV manufacturer aims to pour its initial injection worth US$200 million for factory construction this year, scheduled to operate in 2026. After the construction, this new factory is expected to produce about 50,000 units annually.
VinFast’s footprint in boosting EV industry
In fiscal year (FY) 2023, VinFast accelerated its expansion with a multi-pronged strategy for a better electric vehicle sector. Regarding the product launches, this EV maker introduced four new SUV models in Vietnam across several segments, covering the flagship VF 9 model, VF 5, VF 6, and the VF 7, and also announced its entry into Indonesia with the right-hand-drive VF 5, VF, e34, VF 6, and VF 7 models.
VinFast has also performed a critical pivot from the capital-heavy, direct-to-consumer distribution model to focus on leveraging existing distribution infrastructure by building a dealership network in the US and globally. As a result, VinFast has 13 stores and service centers in California, six new dealers in 5 states (New York, Texas, Kansas, Florida, and North Carolina), and an additional 75 dealers under application.
In India, VinFast aims to seize the growth opportunities and market potential of the world’s most populous nation. Just over a month after the signing of the MoU with the government of Tamil Nadu, India, the company announced the groundbreaking ceremony for the Integrated Electric Vehicle Manufacturing Facility in Thoothukudi City. The plant has a capacity of up to 150,000 electric vehicles annually.
This electric vehicle manufacturer targets the delivery of 100,000 vehicles in FY 2024 by leveraging a more extensive distribution network supported by resilient and potentially recovering macroeconomic conditions. After laying a solid foundation in the US, Canada, and several European countries, VinFast will focus on penetrating another global market, including Indonesia and India, this year.
