Vietnamese automaker VinFast Auto has signed a long-term syndicated loan agreement with Indonesian state-owned Bank Negara Indonesia and Bank Maybank Indonesia to fund the construction of its new battery electric vehicle (BEV) assembly plant in Subang, in Indonesia’s West Java province. The agreement follows an earlier Memorandum of Understanding (MOU) between VinFast and BNI on “collaborative investment, development, and provision of financial solutions to strengthen VinFast’s green ecosystem in Indonesia.”
VinFast broke ground on the Subang BEV plant in July 2024, which is scheduled to be completed in the second half of 2025 – to supply vehicles for the local market and for export. The automaker has also committed to establishing a local supply chain and developing a local BEV recharging network.
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The basic loan is valued at IDR 1.85 trillion (US$113 million) and comes with an additional US$80 million “accordion facility.” The automaker confirmed the loan “will provide critical long-term funding to support VinFast’s global expansion strategy and expand its production capabilities,” adding that it also “underscores VinFast’s strong reputation and growth potential among major partners in Indonesia.”
Under the agreement, BNI will handle the underwriting for the syndicated loan of IDR 1.85 trillion. It will directly provide IDR 1.51 trillion (US$92 million) of the funding, with Maybank providing the remainder. The two banks will also provide the additional US$80 million loan extension facility. The agreement stipulates that the loan is intended to finance the construction of PT VinFast Automobile Indonesia’s electric vehicle manufacturing plant.
BNI’s Director of Wholesale and International Banking, Agung Prabowo, said in a statement: “This financing underscores BNI’s firm commitment to fostering the green transportation transition in Indonesia. We hold a strong conviction in VinFast’s pioneering vision, dedication to innovation, and the significant potential of VinFast and the broader electric vehicle industry. The proactive engagement of financial institutions in channeling investment capital towards the EV sector, particularly through strategic collaborations with promising BEV manufacturers such as VinFast, will be a crucial catalyst in driving Indonesia’s progress towards achieving its objectives for a green and sustainable economy.”
VinFast Asia’s CEO, Pham Sanh Chau, commented: “We are honoured to receive the robust support of Indonesia’s leading financial institutions, BNI and Maybank. We firmly believe this will be a vital catalyst for VinFast’s expansion in Indonesia, continuously enhancing our global production capabilities to meet the ever-increasing demand for the electric vehicle transition. VinFast’s manufacturing facility in Indonesia will not only deliver smart, eco-friendly mobility solutions, but also create jobs and support the growth of Indonesia’s electric vehicle industry.”
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