Following Jokowi visit, Vietnam's VinFast is one step closer to Indonesian factory that will produce RHD vehicles for Malaysia
Arvind · Jan 16, 2024 08:45 AM
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VinFast is one step closer to establishing its first manufacturing plant outside Vietnam, in Bekasi, Indonesia which will serve as a production hub for the brand’s right-hand drive (RHD) market vehicles destined for the ASEAN region - namely Thailand, Singapore, Malaysia as well as Australia.
Following his recent state visit to Vietnam, Indonesian President Joko Widodo visited VinFast's electric manufacturing complex in Hai Phong and expressed intentions to provide the necessary conditions for VinFast to quickly complete the investment procedures for production and business in the Indonesian market.
As previously announced, VinFast intends to invest a minimum of USD 1.2 billion in Indonesia as part of its long-term expansion plans.
President Jokowi's recent visit to the VinFast EV manufacturing complex in Hai Phong, Vietnam
This includes establishing an electric vehicle manufacturing plant with a projected annual production capacity of 30,000 to 50,000 vehicles.
Beyond assembling EVs, VinFast’s 200-hectare factory in Bekasi, West Java is also expected to manufacture electric bike batteries, creating a comprehensive ecosystem. The groundbreaking ceremony is slated for the first quarter of 2024, with operations anticipated to commence in 2025.
The VF 5 compact EV SUV
In the first year, however, VinFast plans to import fully assembled cars (CBU) from its home country, Vietnam – crucially the VF 5 EV SUV, followed by the VF e34, VF 6 and VF 7. The brand's introduction to the Indonesian market is scheduled to take place at the Indonesia International Motor Show (IIMS) 2024 in February.
Alongside, President Widodo and Vietnam Prime Minister Pham Minh Chinh inked an MoU which will see further collaboration from businesses from both countries. One such collaboration is between the Indo-based Gojek transportation services platform and VinFast sister company Green and Smart Mobility (GSM) – a rental and taxi company – which exclusively uses VinFast EV cars and scooters to promote green transportation.
GSM has also announced a plan to invest up to USD 900 million in Indonesia in the near future.
Arvind can't remember a time when he didn't wheel around a HotWheels car. This love evolved into an interest in Tamiya and RC cars and finally the real deal 1:1 scale stuff. Passion finally lead to formal training in Mechanical Engineering. Instead of the bigger picture, he obsesses with the final drive ratio and spring rates of cars and spends the weekends wondering why a Perodua Myvi is so fast.
