The Billion-Dollar Scale of VinFast’s Indonesian Factory: Just How Massive Is It?

This is the company’s fourth global production facility and its first in Southeast Asia outside Vietnam. The project was completed at an astonishing pace, taking only 17 months from construction to operation.

With a total investment of over $1 billion (approximately 26 trillion VND), the plant is situated on a vast 171-hectare complex. In the initial phase, VinFast invested more than $300 million to complete the core infrastructure. The facility is equipped with state-of-the-art production lines, featuring high automation and fully integrated workshops for body welding, painting, assembly, quality control, and logistics.

The plant’s initial production capacity is 50,000 vehicles per year, with the potential to scale up to 350,000 units in subsequent phases to meet both domestic and export demands. It will focus on producing right-hand-drive electric vehicles, starting with the VF 3 urban model, followed by the VF 5, VF 6, and VF 7. By 2026, the product lineup is set to expand further with the introduction of electric motorcycles and MPV electric vehicles.

A key priority for VinFast in Indonesia is its robust localization strategy. The company has set a clear roadmap to achieve a 40% localization rate by 2026, 60% by 2029, and aims for 80% from 2030 onward. Once fully operational, the project is expected to create 5,000 to 15,000 direct jobs, significantly contributing to Subang’s emergence as a new industrial hub in West Java.

Industry experts highlight that VinFast’s inauguration in Subang is more than just a production expansion—it’s a bold statement of Vietnam’s growing influence in the global electric vehicle market. Establishing a billion-dollar headquarters in Indonesia, a long-standing automotive stronghold dominated by Japanese giants, showcases VinFast’s exceptional execution capabilities and strategic vision.

This move positions Indonesia as a critical springboard for Vietnamese electric vehicles to penetrate right-hand-drive markets regionally and globally. By building a closed production ecosystem with an 80% localization target, VinFast is transforming from an importer into a true local manufacturer in Indonesia. This not only optimizes costs but also builds international consumer trust in the long-term commitment of a Vietnamese electric vehicle brand. This strategic step not only expands VinFast’s presence but also elevates Vietnamese industrial pride, establishing it as a leader in Southeast Asia’s electric transportation era.

TH (Tuoitrethudo)