VinFast planned to make a preliminary investment of $1.2 billion in Indonesia, with $150 million to $200 million for construction of a CKD facility.
Heaptalk, Jakarta — Vietnam-based electric vehicle company VinFast revealed its intention to be present in the Indonesian market, one of seven new market clusters in Asia. This expansion plan follows the company’s global footprint in several countries outside Asia, including the US, Canada, Australia, and Europe countries in 2022.
VinFast aims to start deliveries in 2024 by introducing four EVs with the right-hand driving model, namely VF e34 and VF 5 first, followed by VF 6 and VF 7, as reported by Technode Global. The EV manufacturer will build a plant in Indonesia in 2026 for EVs and batteries as this country offers relatively low cost and the availability of domestic raw materials.
The preliminary investment plan is about $1.2 billion over the long term according to its filing with the US Securities and Exchange Commission dated September 12. The amount will be allocated among several targets, one of which is $150 million to $200 million for building construction of a completely knocked down (CKD) facility. The CKD facility is expected to produce 30,000 to 50,000 cars per year with a production start date in 2026.
“Additional investments in the country up to the preliminary investment target would be subject to market conditions and other factors,” VinFast stated in its filing, quoted by Technode Global. This plant in Indonesia will be the third in addition to the main plant in Haiphong City, Vietnam, and a new one in North Carolina which is scheduled to start production in 2025.
Further expansion in India and Malaysia
Further, according to the filing, the EV maker will be present in several other markets, spanning India, Malaysia, the Middle East, Africa, and Latin America by setting up its own distributors and opening showrooms. Additionally, VinFast plans to expand its presence in Europe, identifying 40-50 potential markets and building a plant.
Founded in 2017, VinFast is formed and almost entirely controlled by Vietnamese conglomerate Pham Nhat Vuong who is also the founder of Vingroup, VinFast’s parent company. In 2019, the EV maker launched three car models: VinFast Lux SA2.0, VinFast Lux A2.0, and VinFast Fadil; and three e-scooters: Ludo, Impes, and Klara in the Vietnam market.
In 2021, the company introduced three smart EVs: VF e34, VF 8, and VF 9; two e-scooters: Theon and Feliz; as well as an e-bus. VinFast smart EVs are claimed to have autonomous driving capabilities and are powered by AI, machine learning, and big data.
