Jakarta. Vietnam-based electric car manufacturer VinFast Auto Ltd. is planning to build an assembly plant in Indonesia, a senior government official said on Monday.

This announcement follows President Joko “Jokowi” Widodo's visit to VinFast's headquarters in Hai Phong a month ago, where he inspected their existing assembly plant.

Industry Minister Agus Gumiwang Kartasasmita said VinFast is currently exploring potential locations in Indonesia to construct the assembly plant, specifically for right-hand drive models catering to the local market.

"They are committed to strengthening their presence here and are looking for a location," Agus said after a meeting with the president to discuss VinFast’s planned investments at the State Palace in Jakarta.

"We have several [automotive] industrial zones such as Batang [Central Java] and Karawang [West Java]. Decisions have yet to be made, but there are options for them," Agus said. "Once the location is finalized, they will materialize the investment, and construction is set to begin later this year.”

During President Jokowi's visit to Vietnam, he met with VinFast Chairman Pham Nat Vuong, expressing full support for the company’s expansion into Indonesia.

"We fully support VinFast's investment plan in Indonesia. They can directly discuss business permits with my ministers," the president said during that time.

VinFast has already established a representative office named VinFast Indonesia. Last month, they unveiled plans to invest $1.2 billion in a new assembly plant, intending it to be a regional production base for right-hand drive electric vehicles.

According to VinFast Indonesia's marketing director, Surachman Nugroho, the Indonesian plant will supply right-hand drive EVs to Thailand, Singapore, Malaysia, and Australia. Additionally, the assembly plant will produce EV batteries and electric scooters.

On its website, VinFast claims to be one of the largest manufacturing plants in ASEAN, with an annual capacity of up to 300,000 cars and 500,000 e-scooters.