Singaporean-Vietnamese electric vehicle (EV) maker VinFast plans to invest $200m in an assembly plant in Indonesia, which will manufacture between 30,000 and 50,000 cars per year, the company said in an F-1 filing with the US Securities and Exchange Commission.
The recently announced investment is part of VinFast’s plan to invest $1.2bn in the Indonesian market in the long term. The EV maker plans to expand in seven additional Asian markets including India and Malaysia.
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“We plan to commence deliveries of our 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,” the company said in a statement. “We have also identified Indonesia from among our seven new market clusters as a key potential market for the establishment of manufacturing facilities for our EVs and batteries due to the relatively low cost and availability of domestic raw materials.”
Foreign direct investment (FDI) in Indonesia has expanded significantly since 2004, hitting an all-time high net inflow of $25.12bn in 2014. At the beginning of September, the company secured two major FDI projects from China’s Sichuan Hebang Biotechnology and PepsiCo.
In a press statement released by Sichuan Hebang, the company said it would invest $800m to build a chemical production base. At the same time, separately, PepsiCo promised to invest $200m to open a new snack factory.
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By GlobalData
