VinFast Has No Plans Yet to Open an EV Battery Factory in Indonesia

KatadataOTO – Despite producing vehicles directly in Indonesia, VinFast does not yet plan to build an EV battery factory in the country. They prefer to partner with manufacturers already present in Indonesia.

According to them, this strategy is more effective than building their own battery factory. Moreover, EV batteries are the most crucial component for electric vehicles.

“We have collaborated with Gotion Indonesia to supply batteries for us. Although it is a Chinese company, they already have local partners in the country,” said Pham Sanh Chau, CEO of Vinfast Asia, some time ago.

This collaboration also gives VinFast a well-directed plan to increase its Local Component Level or TKDN. They are committed to doing this gradually until 2030.

Photo: KatadataOTO

“In 2026, our TKDN will be 40 percent, and after two years, it will increase to 60 percent. Then, two years later, it will grow again to 80 percent,” he later added.

With the use of many domestically produced components, it is hoped that VinFast's prices in Indonesia can be more competitive. Therefore, in the future, they will not depend on incentives to survive amidst the competition.

“We are grateful that the government provides incentives for electric vehicles. But I need to emphasize that VinFast's decision to invest in Indonesia is based on long-term business considerations,” he later affirmed.

It was previously reported that VinFast has inaugurated their factory in Subang, West Java. The production facility stands on a 171-hectare plot of land and will be built in several phases. For the first phase, the production capacity will be 50,000 units per year.

Photo: Courtesy

This production facility will absorb around 900 workers. However, this number will be filled gradually as vehicle production begins.

Meanwhile, the models to be produced are the VF 3, VF 5, VF 6, VF 7, and later an MPV. It is hoped that this wide range of choices will make it easier for people to buy according to their needs.

Additionally, they also plan to export their products to several other countries.