Vietnamese EV maker plans RM5.6b Indonesian investment

The investment will include a production facility with a manufacturing capacity of 30,000 to 50,000 cars per year 


VINFAST Auto Ltd plans to invest as much as US$1.2 billion (RM5.62 billion) in Indonesia “in the long-term” as it looks to expand in South-East Asia after entering the US auto market. 

The investment will include US$150 million to US$200 million for an Indonesian production facility to begin operating in 2026 with a manufacturing capacity of 30,000 to 50,000 cars per year, the Vietnamese electric vehicle (EV) maker said in a F-1 filing with the US Securities and Exchange Commission. 

VinFast plans deliveries of its VF e34 and VF 5 models in Indonesia next year, according to the filing. 

The company, which went public in the US via a special-purpose acquisition company merger in August with blank-check company 

Black Spade Acquisition Co, identifies Indonesia as a “key potential market” for EV and battery manufacturing facilities because of low costs and availability of domestic raw materials, it said in the filing. 

VinFast shareholders Vietnam Investment Group (VIG) and Asian Start Trading & Investment Ltd are planning to reduce their stakes in the company, according to the filing, which didn’t provide further details. 

VIG held 33.5% of the company and Asian Star had a 15% stake, according to a separate filing in March. Each of these shareholders is majority-owned by Pham Nhat Vuong. 

VinFast, which began building a factory in North Carolina in July, forecasts sales will reach 45,000 to 50,000 this year. Founder Vuong, Vietnam’s wealthiest citizen, has said the company will break even by the end of 2024. In May, VinFast recalled all its electric SUV in the US over a software malfunction. The company also cut some of its US workforce amid modest sales. 

As of June 30, VinFast had sold a cumulative 18,700 EVs, mostly in Vietnam, according to the filing. It sold 7,100 vehicles to GSM Green and Smart Mobility Joint Stock Co, a Vietnamese taxi company in which Vuong holds a 95% stake. — Bloomberg

  • This article first appeared in The Malaysian Reserve weekly print edition