VinFast is a subsidiary of Vingroup Joint Stock Company (JSC), one of Vietnam’s largest conglomerates, and aims to make EVs more accessible to all consumers in Southeast Asia. The new Subang assembly plant is VinFast’s latest strategic move in supporting Indonesia as the most promising EV market in the region.

Scheduled to start operating by the fourth quarter of 2025, the new facility is to produce special right-hand drive versions of VinFast EVs to cater to the Indonesian market. The planned lineup includes the carmaker’s roster of e-SUV models, namely the VF 3, VG 5, VF 6 and VF 7.

The facility’s development is also expected to generate thousands of local jobs and increase the skilled wage rate while significantly contributing to economic and social development of the Subang community. Meanwhile, its annual output capacity of 50,000 vehicles means the new plant is poised to make a substantial impact on the promotion of green transportation in Indonesia.

As an emerging industrial hub, Subang was selected as a strategically advantageous location for the VinFast assembly plant, said VinFast Indonesia CEO Temmy Wiradjaja.

”It's true that Karawang is closer to Jakarta, but by being in Subang we can accommodate the larger Indonesian market as a whole,” she said.

“Moreover, the infrastructure in Subang is developing continuously, so procuring components will only improve in efficiency over time.”

The Subang plant represents an initial investment of an estimated US$200 million and spans 170 hectares. Additionally, the facility will house various critical production areas including a body shop, a general assembly shop, a paint shop and a testing area.

Commenting on the establishment of VinFast’s first local plant, Presidential Chief of Staff Moeldoko said: “VinFast's presence [in Indonesia] will not only have a positive impact on the regional economy, but also provide new job opportunities and improve the welfare of the surrounding community. The Indonesian government heavily encourages foreign investment in our country, especially in the automotive industry.

“We believe that the local presence of VinFast will bring technological innovations and knowledge transfers that are much needed to increase the competitiveness of the national automotive industry.”

Presidential Chief of Staff Moeldoko delivers his opening speech on July 15, 2024 at the groundbreaking ceremony of Vietnamese automaker VinFast’s first assembly plant in Indonesia

Temmy added: “This groundbreaking event, coming just months after VinFast's market debut in Indonesia, highlights the company’s strategic expansion and competitive drive in [Southeast Asia], marking a key milestone in our strategy to become a leading player in one of the region's most promising electric vehicle markets.

“We believe this project will demonstrate VinFast's long-term commitment to Indonesia in boosting the electric vehicle sector, supporting economic growth and enhancing quality of life for Indonesians.”

Aside from amplifying its global production capabilities, VinFast has quickly established a firm business presence and increased its brand recognition since its Indonesian market debut in February this year.

To date, VinFast has launched two right-hand drive e-SUV models, the VF 5 and the VF e34, established local dealerships and introduced new and flexible sales policies, such as its battery subscription program.

In developing a local manufacturing plant, VinFast remains steadfast in its commitment to innovate and become a high-tech industrial leader in Southeast Asia with a global impact. Despite short-term challenges in the EV industry, VinFast is determined to expand its presence in the region and establish a strong foundation for the burgeoning growth of electrified transportation.

This article is published in collaboration with  Vinfast