VIETNAMESE automaker Vinfast is planning to set up shop in Indonesia in early 2024, as part of its broader plan to expand into Southeast Asia and other parts of the world.
The company will first distribute vehicles to dealer-partners in Indonesia and then build a $200 million plant that will produce electric cars by 2026. Vinfast plans to commence deliveries of its EVs in Indonesia in 2024 with right-hand driving models of the VF e34 and VF 5, with the VF 6 and VF 7 to follow.
Indonesia is a key market for Vinfast as it is the most populous country in Southeast Asia with 270 million people and the largest car market with annual sales of over a million vehicles. It is also where the cheapest fuel prices per liter in Southeast Asia is found, ahead of Malaysia.
However, Indonesia is a right-hand drive market and Vinfast currently manufactures its VF series EVs all in left-hand drive. Vinfast has said that it is equipped to reformat its existing line in order to meet the sales demand of Indonesia and that its new plant will be able to accommodate both left- and right-hand drive cars.
In addition to Indonesia, Vinfast has also selected seven more markets in Asia to expand into. These markets include Cambodia, Laos, Myanmar, The Philippines, Malaysia, Thailand, and Singapore, Malaya Business Insight sources at Vinfast say.
Vinfast is owned by the Vingroup and is listed on the Nasdaq stock exchange. The company has a valuation of over $85 billion.
Vinfast’s expansion into Indonesia and other Asian markets is a significant development for the electric vehicle industry. It shows that the company is serious about becoming a global player in the EV market.
