Subang. Vietnamese automaker VinFast has officially commenced construction of its first factory in Indonesia, located in Subang, West Java. The groundbreaking ceremony was attended by Presidential Chief of Staff Moeldoko, Acting Regent of Subang Imran, Vingroup Chairman and Senior Advisor Nguyen Dhuc Thanh, and CEO of VinFast Indonesia Temmy Wiradjaja.

“This groundbreaking event takes place just a few months after VinFast's official entry into Indonesia. It underscores VinFast's strategic expansion and competitiveness in Southeast Asia, marking a significant milestone in our strategy to become a leading player in one of the most promising electric vehicle markets in the region,” said Wiradjaja on Monday.

He added that the project demonstrates VinFast's long-term commitment to Indonesia, aiming to boost the electric vehicle sector, support economic growth, and improve the quality of life for the Indonesian people, particularly those living near the factory in Subang, West Java.

The factory is expected to create local jobs and integrate local supply chains.

VinFast's Subang factory is set to begin production by late 2025. It will produce four electric car models: VF5, VF6, VF7, and VF3. The initial investment for the factory is $200 million (Rp 3.2 trillion), part of a total US$1.2 billion investment in Indonesia.

The VinFast factory in Subang will exclusively produce electric cars, with no plans to manufacture conventional vehicles or motorcycles. The factory aims to produce 50,000 electric cars per year, all of which will be allocated for the domestic market, not for export.