VinFast Allocates Initial Investment of US$ 200 Million to Build Electric Car Factory in Indonesia

FOREIGN DIRECT INVESTMENT - JAKARTA. VinFast confirms its commitment to developing an electric car factory in Indonesia in the near future.

VinFast CEO Tran Quoc Huy stated, in the initial stage they are investing US$ 200 million to build an electric car factory in Indonesia with a capacity of up to 50,000 units per year.

“The construction of the factory is planned to start in the first half of 2024 and the VinFast factory is expected to be operational by the end of 2025 or early 2026,” he said, on Friday (15/3).

He added, when the factory in Indonesia starts operating with a high level of component localization, this will enable VinFast to offer high-quality electric cars at competitive prices in the market accompanied by excellent after-sales service.

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For VinFast, Indonesia is one of the largest automotive markets in Southeast Asia. The electric car market in Indonesia is also ready to grow significantly thanks to a number of incentives from the government, such as the elimination of import duties and luxury goods taxes for electric cars.

This is the government's commitment to continue to encourage investment and development of electric car infrastructure.

“This will create opportunities for companies like VinFast while motivating the Indonesian community to adopt sustainable mobility,” concluded Tran Quoc Huy.

Just so you know, VinFast introduced several electric cars at the Indonesia International Motor Show (IIMS) 2024 namely VF 5, VF e34, VF 6, and VF 7.

VinFast has not yet announced the official price of the electric cars it sells in Indonesia.

However, there are rumors that the VF 5 model will be sold at a price of around IDR 200 million, while the VF e34 is estimated to be priced at IDR 300 million.