VinFast Officially Inaugurates Electric Vehicle Factory in Subang, Indonesia

The factory not only enhances VinFast’s competitive edge in the market but also underscores its goal of increasing localization, creating high-quality jobs, and significantly contributing to the development of Indonesia’s electric vehicle industry.

The inauguration ceremony of the VinFast factory in Subang was attended by Mr. Airlangga Hartarto – Coordinating Minister for Economic Affairs of Indonesia; Mr. Arrmanatha C. Nasir – Deputy Minister of Foreign Affairs of Indonesia; Mr. Andi Sudirman Sulaeman – Governor of South Sulawesi; Mr. H. Erwan Setiawan – Deputy Governor of West Java; His Excellency Ta Van Thong – Ambassador of the Socialist Republic of Vietnam to Indonesia, along with representatives from central and local government agencies in Indonesia and VinFast’s strategic partners in the country.

The VinFast electric vehicle factory in Subang commenced operations just 17 months after groundbreaking, showcasing VinFast’s rapid execution speed and robust implementation capabilities. This is the company’s fourth factory to become operational globally and its first in Indonesia and Southeast Asia (outside Vietnam).

The factory’s on-time completion highlights VinFast’s commitment to advancing localization, aligning with the Indonesian government’s electric vehicle industry development goals. VinFast plans to swiftly increase its localization rate to over 40% by 2026, 60% by 2029, and 80% from 2030 onward, adhering to the Indonesian government’s localization regulations and proactively developing a supporting industrial ecosystem around the Subang complex.

Speaking at the inauguration ceremony, Mr. Airlangga Hartarto emphasized, “Indonesia is delighted and highly appreciates VinFast’s timely completion of the electric vehicle factory in Subang. This project not only aligns with the green industry development direction promoted by the government but also provides strong momentum for the local economy, particularly in creating job opportunities, enhancing workforce quality, and developing a supporting industrial ecosystem. Indonesia is confident that, with the scale and significance of this project, VinFast will become a key player in transforming Subang into a new regional hub for the electric vehicle industry in the near future.”

Mr. Pham Sanh Chau, CEO of VinFast Asia, shared, “The timely inauguration of the Subang factory not only demonstrates VinFast’s strong implementation capabilities but, more importantly, marks a strategic milestone in fulfilling VinFast’s long-term commitment to Indonesia. VinFast understands that localization is a critical foundation for its success in this country and directly contributes to the Indonesian government’s economic growth and job creation goals. With this factory’s operation, VinFast has completed its most comprehensive electric vehicle ecosystem in Indonesia.”

The VinFast factory in Subang is located on a 171-hectare site, with a multi-phase investment totaling over $1 billion. In subsequent phases, the factory’s capacity can be increased to 350,000 vehicles per year, ready to meet the growing demand in the Indonesian market and explore export opportunities to other countries.

In Phase 1, VinFast’s total investment will exceed $300 million, with the factory’s capacity reaching 50,000 vehicles per year. The factory is equipped with a synchronized production line system meeting international standards, featuring high automation and advanced technology to ensure product quality. The complex includes essential workshops such as Body Welding, Painting, Assembly, a Quality Control Center, and a Logistics Warehouse.

Notably, the project also allocates land for the development of a supporting factory cluster for local contractors and businesses, expected to expand in the coming years, laying a solid foundation for extensive localization.

When operating at full capacity, the VinFast factory in Subang is expected to create 5,000 to 15,000 direct jobs for local workers, along with thousands of indirect jobs in the supply chain and related services. This will drive the socio-economic development of Subang, which is being positioned as a new industrial hub in West Java.

In the initial phase, the factory will focus on assembling strategic electric vehicle models, including the VF 3, VF 5, VF 6, and VF 7 with right-hand drive, catering to the Indonesian market. These models are tailored to urban mobility needs, targeting young customers and modern families.

The factory will also assemble new products expected to be introduced by VinFast in the Indonesian market in 2026, including electric motorcycles and an MPV electric vehicle optimized for business services.

The inauguration of the Subang factory clearly demonstrates VinFast’s role in building Indonesia’s electric vehicle value chain, enhancing Southeast Asia’s position on the global electric vehicle industry map. The factory will serve as a crucial foundation for VinFast’s comprehensive “For a Green Future” ecosystem in Indonesia.

TH (Tuoitrethudo)