VinFast Inaugurates Rp 4.8 Trillion Factory in Subang

KatadataOTO – The Vinfast factory in Indonesia has finally been inaugurated. This facility is planned to start producing vehicles next year, with the VF 3 as the first model to be made.

The presence of the factory is believed to strengthen VinFast's position in Indonesia. Moreover, they have been quite aggressive in marketing their products in the country.

“The presence of the factory in Subang is to strengthen competitiveness and increase local components. We want to help drive economic growth in Indonesia,” stressed Pham Sanh Chau, CEO of Vinfast Asia (15/12).

Meanwhile, Airlangga Hartarto, Coordinating Minister for Economic Affairs, appreciated the steps taken by VinFast in Indonesia. This is because the Vietnamese manufacturer has implemented a rather unique strategy compared to other brands.

Photo: KatadataOTO

“VinFast is the only electric vehicle manufacturer that has built around 1,000 charging stations. This shows their commitment to building the EV ecosystem in Indonesia,” he said.

It should be noted that the VinFast factory in Indonesia 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.

“In the first phase, construction will take 17 months and use about 10 hectares. Meanwhile, the total investment is around USD 300 million or about 4.8 trillion,” said Kariyanto Hardjosoemarto, CEO of VinFast Indonesia (15/12).

He also revealed that they will absorb around 900 workers. However, this number will be filled gradually as vehicle production begins.

“The models to be produced here will include the VF 3, VF 5, VF 6, VF 7, and later an MPV. We are aware that the potential in that segment is still very large in Indonesia,” he said.

Photo: KatadataOTO

The choice of Subang as the factory location is claimed to have been based on various considerations. One of them is the ease of logistics, which is very important for vehicle production.

“This location is considered to have very good potential. Moreover, its location is close to the toll road, and perhaps in the future, direct access can be opened, making the delivery process easier,” he added.

The VinFast factory in Indonesia is their first production facility in Asia outside of Vietnam. Later, this factory will focus on making right-hand drive vehicles.