Vietnamese electric vehicle (EV) maker VinFast held a groundbreaking ceremony for its new EV assembly plant in Indonesia on Monday.

Located in Subang City, an emerging industrial hub in Indonesia’s West Java Province, the plant has an initial investment of US$200 million and an annual capacity of 50,000 vehicles.

The plant will include several key production areas such as a body shop, general assembly shop, paint shop, and testing area, among others, according to the website of Vingroup, the Vietnamese conglomerate that owns Vinfast.

Expected to start operating in the fourth quarter of 2025, the plant will produce right-hand drive versions of VinFast’s electric sports utility vehicle (e-SUV) models, including VF 3, VF 5, VF 6, and VF 7, for the Indonesian market.

Speaking at the ceremony, General H. Moeldoko, Presidential Chief of Staff of Indonesia, stated that VinFast’s presence will not only positively impact the local economy but also create new job opportunities and improve the quality of life for local communities, according to the website.

Temmy Wiradjaja, CEO of the new plant VinFast Indonesia, commented that the groundbreaking event spotlighted the company’s strategic expansion and competitive drive in the region.

He noted that it marked a key milestone in VinFast's 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, boosting the electric vehicle sector, supporting economic growth, and enhancing the quality of life for Indonesians,” he said.

Recently, VinFast has established a business presence and increased brand recognition in Indonesia by launching two right-hand drive e-SUV models, VF 5 and VF e34.

The company has also opened dealership stores and introduced flexible sales policies, including its pioneering battery subscription program.

Established in northern Hai Phong City in 2017, VinFast is a subsidiary of Hanoi-based Vingroup, whose chairman, Pham Nhat Vuong, is Vietnam's wealthiest individual, with a net worth of $4.4 billion, according to Forbes' 2024 list of the world's richest people.

VinFast now owns and operates a modern automobile factory complex in Hai Phong, with an automation level of up to 90 percent.

In July 2023, the firm started construction for its EV manufacturing plant in North Carolina, the U.S., with an investment of $2 billion for phase 1.

In February 2024, the EV maker also broke ground on an EV and battery plant in India, the world's third-largest automobile market, pouring $500 million worth of investment into phase 1 of the project.

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