VinFast Expands Southeast Asia Operations with USD 1 Billion EV Plant in Indonesia

By Isha Qureshi • Wed Dec 17 2025

Vietnamese electric vehicle manufacturer VinFast has officially inaugurated its electric vehicle (EV) manufacturing facility in Subang, West Java, marking a significant milestone in the company’s global expansion strategy and underscoring its long-term commitment to Indonesia’s rapidly evolving EV ecosystem.

The inauguration ceremony, held on December 15, 2025, was attended by senior Indonesian government officials, including Coordinating Minister for Economic Affairs Dr. (H.C.) Ir. Airlangga Hartarto, Vice Minister of Foreign Affairs Arrmanatha C. Nasir, and key provincial leaders. Representatives from Vietnam’s diplomatic mission, along with VinFast’s strategic partners, were also present at the event.

Completed in just 17 months from groundbreaking, the Subang facility is VinFast’s fourth operational manufacturing plant globally and its first in Indonesia, as well as its first in Southeast Asia outside Vietnam. The project reflects VinFast’s rapid execution capabilities and aligns closely with Indonesia’s national ambitions to develop a robust domestic electric vehicle industry.

Spanning an area of 171 hectares, the Subang plant is being developed in multiple phases with a total planned investment exceeding USD 1 billion. In Phase 1 alone, VinFast has committed more than USD 300 million, establishing an initial annual production capacity of 50,000 vehicles. At full scale, the facility’s capacity can be expanded to up to 350,000 vehicles per year, supporting both domestic demand and future export markets.

The plant is equipped with a fully integrated production line incorporating advanced automation and international manufacturing standards. Core operations include body welding, painting, vehicle assembly, quality inspection and logistics, ensuring high levels of product quality, efficiency and consistency.

Localization remains a central pillar of the project. VinFast aims to raise local content levels to over 40 percent by 2026, 60 percent by 2029 and 80 percent from 2030 onwards, in line with Indonesian government regulations. To support this goal, the project includes a dedicated supplier park, fostering the development of a strong local industrial ecosystem around the Subang complex.

At full capacity, the facility is expected to create between 5,000 and 15,000 direct jobs, in addition to thousands of indirect employment opportunities across the supply chain. The development is poised to position Subang as a new electric vehicle manufacturing hub in West Java.

In its initial phase, the plant will assemble right-hand-drive versions of VinFast’s strategic EV models, including the VF 3, VF 5, VF 6 and VF 7, designed to meet the needs of urban commuters and young families in Indonesia. From 2026 onwards, the facility will also assemble additional models, including electric two-wheelers and electric MPVs tailored for commercial and service-oriented applications.

VinFast stated that the Subang facility will serve as a cornerstone of its broader “For a Green Future” ecosystem in Indonesia, encompassing vehicle sales, aftersales services, financing partnerships and an expanding charging infrastructure developed in collaboration with global charging solutions provider V-Green.

With the inauguration of the Subang plant, VinFast has further reinforced Indonesia’s position within the global EV value chain while highlighting Southeast Asia’s growing role in the worldwide transition toward sustainable mobility.