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VinFast Starts Construction of US$200 Million Plant in Subang
WINDONESIA July 18, 2024
The groundbreaking ceremony for VinFast's factory in Subang, West Java on Jul. 5, 2024. (CNBC Indonesia/Ferry Sandi).
Vietnamese electric car manufacturer VinFast Auto officially commenced the construction of its first electric vehicle assembly plant in Indonesia.
The construction was marked by a groundbreaking ceremony in Subang Regency, West Java Province, on Jul. 5, 2024, led by Presidential Chief of Staff Moeldoko. VinFast considers Indonesia to be one of the most promising electric vehicle markets in Southeast Asia.
The plant, located in the developing industrial area of Subang, is being built with an initial investment of approximately US$200 million (about Rp3.23 trillion at Rp16,160 per uS$1). The facility will operate with an annual production capacity of 50,000 units and will include several main production areas such as Body Shop, General Assembly Shop, Paint Shop, testing areas, and more.
VinFast has scheduled the plant to begin operations in the fourth quarter of 2025 and will produce right-hand drive electronic sport utility vehicles (e-SUV) models, including the VF 3, VF 5, VF 6, and VF 7 series for the Indonesian market.
The project is expected to create thousands of local jobs, increase the number of skilled workers, and make a significant contribution to the economic and social development of the local community. Presidential Chief of Staff Moeldoko believes this project will also have a substantial impact on promoting environmentally friendly transportation in Indonesia.
"The presence of VinFast will not only have a positive impact on the regional economy but will also create new job opportunities and improve the welfare of the surrounding community," he said.
"The Indonesian government strongly encourages foreign investment in our country, especially in the automotive industry sector. We believe that the presence of VinFast will bring much-needed technological innovation and knowledge transfer to enhance the competitiveness of the national automotive industry," Moeldoko added.
Currently, VinFast has launched two right-hand drive electric SUV models, the VF 5 and VF e34, opened dealer stores, and implemented flexible sales policies including a pioneering battery subscription program. VinFast Indonesia Chief Executive Officer Temmy Wiradjaja stated that VinFast strives to become a pioneer in the high-tech industry in Southeast Asia with a global influence.
"This groundbreaking event, held just a few months after VinFast's official entry into Indonesia, underscores VinFast's strategic expansion and competitiveness in Southeast Asia, marking an important milestone in our strategy to become a leading player in one of the most promising electric vehicle markets in the region," he said.
"This project demonstrates VinFast's long-term commitment to Indonesia, boosting the electric vehicle sector, supporting economic growth, and improving the quality of life for the Indonesian people," Temmy concluded.
Source: www.cnbcindonesia.com
