VinFast Opens Indonesia Electric Vehicle Plant Just 17 Months After Groundbreaking

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VinFast loves doing things fast. In keeping with this reputation, the Vietnamese EV maker inaugurated its assembly plant in Subang, West Java, on December 15, completing the facility in 17 months and establishing its first production base in Southeast Asia outside Vietnam.

The factory represents VinFast’s fourth operational facility globally and marks the culmination of the company’s rapid expansion into Indonesia, which began with its market entry in February 2024. The $300 million first phase gives the plant capacity to produce 50,000 vehicles annually, with potential expansion to 350,000 units through subsequent development phases requiring over $1 billion in total investment.

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto attended the ceremony alongside Vice Minister of Foreign Affairs Y.M. Arrmanatha C. Nasir, South Sulawesi Governor Andi Sudirman Sulaeman, West Java Vice Governor H. Erwan Setiawan, and Vietnamese Ambassador Ta Van Thong.

“We highly commend VinFast for inaugurating its electric vehicle plant in Subang on schedule,” Hartarto said. “This project closely aligns with the Government’s green industrial development agenda and serves as a strong catalyst for the local economy, particularly in job creation, workforce quality enhancement, and the growth of a supporting industrial ecosystem.”

The 171-hectare complex features integrated production lines including body welding, painting, and assembly workshops, along with quality inspection centers and logistics facilities. VinFast plans to reserve portions of the site for supplier development to support localization targets of 40% by 2026, 60% by 2029, and 80% from 2030 onward, according to Indonesian government industrial regulations.

Pham Sanh Chau, CEO of VinFast Asia, described the inauguration as evidence of the company’s execution capabilities. “The timely inauguration of the Subang plant is not only a testament to VinFast’s strong execution capabilities, but more importantly, a strategic milestone in our long-term commitment to Indonesia,” he said.

The facility will initially assemble right-hand drive versions of the VF 3, VF 5, VF 6, and VF 7 models for the Indonesian market. Production will expand in 2026 to include electric two-wheelers and a multipurpose vehicle designed for commercial operations. At full capacity, the plant is projected to generate 5,000 to 15,000 direct jobs and thousands more in supporting industries.

VinFast’s factory launch follows a carefully staged market entry that accelerated throughout 2024. The company announced plans to invest $1.2 billion in Indonesian manufacturing in July 2023, identifying the country as a strategic market due to raw material availability and its position as Southeast Asia’s largest automotive market.

The automaker made its formal Indonesian debut at the February 2024 Indonesia International Motor Show, introducing right-hand drive electric vehicles for the first time in its international expansion. In March 2024, VinFast launched the VF e34 model at 315 million rupiah and opened its first dealership in Depok through partner PT Gallerie Setia Utama.

By August 2024, the company had expanded to 15 dealer locations across Jakarta, Bandung, Yogyakarta, Malang, Sidoarjo, Mojokerto, Surabaya, Bali, Batam, and Makassar. The dealer network offered the VF 5 and VF e34 models with battery subscription programs designed to reduce upfront costs for customers.

VinFast broke ground on the Subang plant in July 2024, just months after opening its first dealership. The company participated in Indonesia’s largest auto show, the Gaikindo Indonesia International Auto Show, in July 2024, where it displayed six models and offered test drives.

The company also partnered with Indonesian service provider Otoklix to establish after-sales support infrastructure and introduced a buyback guarantee offering customers up to 90% of original purchase price after six months and 70% after three years.

Not just assembly, taxis too

VinFast’s parent company Vingroup has deployed additional electric mobility services in Indonesia. Green and Smart Mobility, which operates the Xanh SM electric taxi service, launched operations in Jakarta on December 18, 2024, operating exclusively with VinFast Limogreen electric vehicles.

The taxi service plans to deploy approximately 1,000 vehicles initially in the greater Jakarta area, expanding to 10,000 by 2025. Xanh SM has formed partnerships with nine Indonesian companies including telecommunications provider XL Axiata, Bank Central Asia, and real estate developers Lippo and ASRI.

The electric taxi operation expanded to Makassar, Bekasi, and Surabaya in subsequent months. In June 2025, Xanh SM partnered with ride-hailing platform Gojek to offer electric taxi services through the GoGreen SM feature on the Gojek app.

VinFast has also collaborated with V-Green, a charging infrastructure developer, to expand charging station availability throughout Indonesia. The company’s Indonesian strategy combines vehicle manufacturing, taxi fleet operations, charging infrastructure, and financial partnerships to establish what it describes as an integrated electric vehicle ecosystem.

The Subang plant will serve as the production hub for this network, with VinFast positioning the facility as a potential export base for right-hand drive markets across Southeast Asia once domestic demand stabilizes. All left-hand-drive markets will be served by the Hai Phong plant in Vietnam.