Vietnamese battery electric vehicle (BEV) manufacturer VinFast Auto inaugurated its new BEV assembly plant in Indonesia, marking a major milestone in the company’s overseas expansion strategy.
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The automaker said it expects the new plant, located in Subang, West Java Province, to “significantly strengthen its local competitiveness, accelerate localization efforts, generate high-quality employment, and play a pivotal role in advancing the nation’s electric vehicle industry.”
VinFast said the Subang plant was built and put into operation just 17 months after it held the ground-breaking ceremony. It is the company’s fourth operational vehicle assembly plant worldwide, and its first plant in Indonesia and Southeast Asia outside Vietnam. The company already has two vehicle assembly plants in operation in Vietnam and one in India.
VinFast said it is committed to localizing its products in line with Indonesia’s local content regulations and the government’s aim of developing a national BEV industry. The company aims to achieve a local content of at least 40% by the end of 2026, and 80% by 2030, while “actively fostering a supporting industrial ecosystem around the Subang complex.”
VinFast confirmed that its Subang project will be developed in multiple phases, with a total investment of over USD 1 billion. The company has invested USD 300 million in the first phase of construction, establishing an initial production capacity of 50,000 vehicles per year, including passenger vehicle models such as the VF3, VF5, VF6 and VF7 for the local market. The facility includes a fully-integrated production line with a high level of automation, including body welding, painting and assembly operations, with additional land set aside for the development of a supplier park.
The Subang plant will be scaled up to 350,000 vehicles per year later on, to meet growing local demand and to “unlock future export opportunities.” At full capacity, the plant will create up to 15,000 direct jobs, with thousands more indirectly, within the local supply chain and related services.
In 2026, the company also plans to launch battery-powered two-wheelers and an MPV optimized for commercial and service-oriented mobility operations in Indonesia.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, said at the opening ceremony: “We highly commend VinFast for inaugurating its BEV plant in Subang on schedule. This project closely aligns with the Government’s green industrial development agenda and serves as a strong catalyst for the local economy, particularly in job creation, workforce quality enhancement, and the growth of a supporting industrial ecosystem. With the scale and stature of this project, we firmly believe VinFast will become a key anchor, helping position Subang as a new EV industrial hub of the region in the near future.”
VinFast Asia’s CEO, Pham Sanh Chau, added: “The timely inauguration of the Subang plant is not only a testament to VinFast’s strong execution capabilities, but more importantly, a strategic milestone in our long-term commitment to Indonesia. We firmly believe that localization is a decisive foundation for VinFast’s sustainable success in this market, while also directly contributing to the Indonesian Government’s objectives of economic growth, industrial development, and job creation. With the Subang plant now officially in operation, VinFast has completed one of the most comprehensive and integrated electric vehicle ecosystems in Indonesia, reaffirming our commitment to long-term partnership and shared value creation with the country.”
