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VinFast is ready to inaugurate its factory in Indonesia in October 2025 and will focus on tapping into the Asian automotive market.
By Adi Hidayat
KatadataOTO – VinFast plans to open several factories in Asia in 2025. One of the locations is in Indonesia and will be officially opened in October 2025.
However, before that, they will first inaugurate a factory in India in June 2025. This move shows a shift in their focus from the global automotive market to Asia.
Initially, VinFast planned to focus on the American market. However, the slow growth of electric vehicles, coupled with import tariff policies there, made them shift their attention to Asia.
"In the near future, besides the Vietnamese market, we will focus more on the Indonesian, Indian, and Philippine markets. Currently, VinFast does not plan to increase sales in the United States, Canada, or the European Union due to high logistics costs," said Pham Nhat Vuong, CEO of VinFast, as reported by Reuters (24/04).
It was previously reported that VinFast is still in the process of building a factory located in the Subang area, West Java. After the construction is complete, a number of models will be assembled immediately to meet the needs of the domestic market.
The models to be produced are quite diverse, ranging from the VF 3, VF 5 to the VF e34. The wide range of choices makes it easier for consumers to get their dream product.
"We want to create jobs for thousands of people and hope we can contribute to economic development in Indonesia," he later said.
Later, the factory in Subang will become VinFast's production base for right-hand drive vehicles. The facility stands on a 170-hectare plot of land and involves an investment of USD 200 million or around IDR 3.2 trillion.
It consists of several main areas such as the Body Shop, General Assembly Shop, Paint Shop, testing area, and others.
Meanwhile, the VinFast factory in India is planned to be inaugurated in June 2025. The investment value from the company is USD 2 billion or around IDR 33.7 trillion.
However, this amount is divided into several phases. For the first five years, the company will only disburse funds of USD 500 million or IDR 8.4 trillion.
These funds are still sufficient to build a factory with a capacity of 150,000 vehicles per year.
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