VinFast, a Vietnamese EV manufacturer, has invested more than IDR 1.9 trillion (US$ 115.4 million) to build a plant in Subang, West Java, Indonesia, which is scheduled to begin operations by late 2025.

The Subang facility will be one of VinFast's first two overseas plants. The investment is supported by a syndicated loan from Bank Negara Indonesia and Maybank Indonesia, while VinFast is also seeking an additional US$ 80 million in financing. The facility will supply the domestic market and will also serve as an export base for the ASEAN region.

VinFast stated that the plant's location does not overlap with Sustainable Food Agricultural Land (LP2B) and confirmed that it is maintaining communication with the government to ensure compliance.

Indonesia has set a target of achieving two million electric vehicles on the road by 2030, making it a significant market for VinFast's regional operations. The company's planned 2025 launch coincides with the government's electrification objectives.

The company is increasing its international manufacturing presence while reporting a net loss of US$ 812 million in Q2 2025, alongside revenue growth of 91.6% to US$ 663 million.

VinFast's Indonesian plant represents a US$ 190 million commitment through syndicated loans from Bank Negara Indonesia and Maybank, combined with additional equity investment, bringing the total investment for the facility to more than US$ 270 million.

The expansion strategy focuses on market positioning rather than immediate profitability. VinFast is following a model adopted by other EV manufacturers that prioritise production scale and market share to achieve future profitability.