VinFast Auto Co. (VFS) has revealed plans to expand its presence in multiple global markets, including Indonesia. The Vietnamese electric vehicle (EV) manufacturer aims to establish a factory in Indonesia by 2020. This expansion is part of VinFast’s strategy to grow its market worldwide, with a particular focus on Indonesia, which has significant nickel resources. The company intends to invest up to $1.2 billion in the Indonesian market, including the establishment of its third production facility.
VinFast recently made its debut on the Nasdaq and wasted no time in expanding into various market clusters across six continents. According to an SEC filing, the company plans to establish its own distributors in several markets such as Vietnam, North America (US and Canada), Europe (France, Germany, and the Netherlands), as well as Asia (India, Indonesia, and Malaysia), the Middle East, and the rest of Europe, Africa, and Latin America. VinFast’s proposed factory in Indonesia will require a $200 million investment and is expected to produce 30,000 to 50,000 EVs annually. The company’s long-term investment in Indonesia is estimated to reach $1.2 billion, including factory costs.
This will be VinFast’s third manufacturing facility, following the factories in Hai Phong, Vietnam, and North Carolina, which is scheduled to begin production in 2025. The choice of Indonesia as a location for the new factory is driven by its abundant nickel deposits, an essential component for EV batteries. The announcement comes just one month after the merger of VinFast and Black Spade Acquisition Company, and ahead of the combined company’s listing on the Nasdaq Global Select Market on August 15.