- Vietnam’s VinFast approved a $1.2B Indonesian EV expansion plan.
- This includes building a $200M production plant by 2026 targeting 30-50k annual vehicles.
- VinFast seems poised for regional growth even as global competition intensifies.
Vietnam-based electric automaker VinFast secured approval from Indonesian President Joko Widodo last week to move ahead with major expansion plans. Parent firm Vingroup announced Widodo’s blessing after visiting VinFast’s manufacturing facilities.
VinFast’s investment plans
As part of VinFast’s proposed $1.2 billion long-term Indonesian investment, the company aims to build a $200 million EV production plant by 2026. The facility is projected to churn out 30,000 to 50,000 electric vehicles annually.”The President said he would create all necessary conditions for VinFast to complete investment procedures quickly,” Vingroup said post-meeting.
Partnership strategies and growth
Beyond manufacturing, VinFast and Vingroup’s ride-hailing unit also plan to spend up to $900 million promoting EV adoption in Indonesia through partnerships with local leaders like GoTo’s Gojek. The collaborations intend to encourage four-wheel EV usage among drivers on the platform.
VinFast seems poised for regional growth even as global EV competition heats up. After going public via SPAC last summer, the Vietnamese automaker already operates in several Western countries. It recently posted 2020 revenue of $342 million, up over 150% year-over-year.
