Vietnamese automaker VinFast Auto has officially broken ground on its new electric vehicle (EV) assembly plant in Subang, West Java, Indonesia.

VinFast said in a statement on Monday that the new VinFast assembly plant, located in the emerging industrial hub of Subang, represents an initial investment of around $200 million.

The facility will have an annual capacity of 50,000 vehicles, and house several key production areas such as body shop, general assembly shop, paint shop and testing area, etc.

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

It also said this strategic move into one of Southeast Asia’s most promising EV markets is set to create numerous job opportunities for the local workforce, underscoring VinFast’s commitment to expanding its presence in the region and supporting Indonesia’s burgeoning electric vehicle industry.

The project is anticipated to generate thousands of local jobs, increase the skilled labor rate, and contribute significantly to the economic and social development of the local community.

The project is also poised to make a substantial impact on promoting green transportation in Indonesia.

“VinFast’s presence here will not only have a positive impact on the regional economy, but will also provide
new job opportunities and improve the welfare of the surrounding community,” said General H.Moeldoko, Chief of Presidential Staff of Republic Indonesia.

“The Indonesian government heavily encourages foreign investment entering our country, especially in the
automotive industry sector,

“We believe that VinFast presence will bring technological innovation and knowledge transfer that is much needed to increase the competitiveness of the national automotive industry,” he added.

Temmy Wiradjaja, Chief Executive Officer of VinFast Indonesia, said the groundbreaking event, coming just months after VinFast’s official market debut in Indonesia, highlights the company’s strategic expansion and competitive drive in the region, marking a key milestone in their 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 Indonesian,” he added.

In parallel with bolstering its global production capabilities, VinFast said the firm has swiftly established a robust business presence and increased brand recognition in Indonesia.

The company has launched two right-hand drive electric SUV models, the VF 5 and VF e34, opened dealership stores, implemented flexible sales policies including its pioneering battery subscription program.

With a long-term vision, VinFast said the firm continues to innovate and strive towards becoming a high-tech industrial leader in Southeast Asia with global influence.

Despite the short-term challenges facing the electric vehicle industry, it said the firm remains resolute in expanding its footprint in the region, laying a solid foundation for the irreversible growth of electrified transportation.

VinFast, a subsidiary of Vingroup JSC, one of Vietnam’s largest conglomerates, is a pure-play EV manufacturer.

The firm’s product lineup today includes a wide range of electric SUVs, e-scooters, and e-buses.

VinFast is currently embarking on its next growth phase through rapid expansion of its distribution and dealership network globally and increasing its manufacturing capacities with a focus on key markets across North America, Europe and Asia.

Vinfast invests $1.2B to build local assembly plant in Indonesia