VinFast to Build $115M EV Plant in Indonesia by 2025

 

Vietnamese electric vehicle maker VinFast will invest more than 1.9 trillion rupiah (US$115.4 million) to establish a manufacturing plant in Subang, West Java, Indonesia, set to begin operations by late 2025.

The project, supported by syndicated loans from Bank Negara Indonesia and Maybank Indonesia, along with an additional US$80 million financing plan, represents a total commitment of over US$270 million.

The Subang facility will be one of VinFast’s first two overseas plants, with an initial annual capacity of 50,000 EVs. It will primarily serve Indonesia’s domestic demand while functioning as an export hub for ASEAN markets.

Key Highlights

• VinFast to invest $115M in Indonesia’s Subang EV plant
• Facility to produce 50,000 vehicles annually from late 2025
• Indonesia targets 2M EVs by 2030 amid surging sales

The company confirmed that the site does not overlap with Sustainable Food Agricultural Land (LP2B) and is working closely with the government to ensure compliance.

VinFast’s entry comes at a pivotal moment in Indonesia’s EV growth story. The country, which sells over 1 million vehicles annually, targets 2 million EVs on the road by 2030. EV sales surged 151 percent year-over-year in 2024 to reach 43,188 units, nearly tripling from 2022 levels, signaling strong consumer adoption.

Also Read: Vinfast to Make EVs in India Eyeing Asia Exports

This expansion underscores VinFast’s strategy of prioritizing market share and scale over short-term profitability. The company reported a Q2 2025 net loss of US$812 million, despite a 91.6 percent revenue increase to US$663 million and a record 172 percent jump in deliveries to 35,837 vehicles. By entering Indonesia at this inflection point, VinFast aims to secure a strong foothold before the market matures and competition intensifies.