Subang. Vietnamese electric vehicle manufacturer VinFast on Monday inaugurated its new factory in Subang, West Java, with an initial production capacity of 50,000 vehicles per year, marking a major step in its expansion in Indonesia.

Alongside the plant’s opening, VinFast announced plans to inject an additional $1 billion in investment to significantly scale up its manufacturing capacity in the country.

Coordinating Minister for Economic Affairs Airlangga Hartarto welcomed the company’s commitment, describing the investment as a positive signal for Indonesia’s electric vehicle ecosystem.

“The factory inaugurated today has a capacity of 50,000 units. Going forward, VinFast plans to expand that capacity to 350,000 units,” Airlangga said during the factory's launch ceremony in Subang.

The Subang facility is expected to become one of Indonesia’s modern automotive production hubs and generate new employment opportunities for local residents.

VinFast Indonesia chief executive Kariyanto Hardjosoemarmo said earlier that the factory represents more than a business expansion, underscoring the company’s long-term commitment to Indonesia’s economy.

“The Subang plant is proof of our seriousness about staying, growing, and helping to develop Indonesia’s electric vehicle industry,” Kariyanto said on September 24. “It will employ around 900 to 1,000 workers, allowing the benefits to be felt directly by the community.”

Built on a site of about 170 hectares, the VinFast factory is targeted to begin operations this year. In its first phase, production will focus on right-hand-drive vehicles tailored to the Indonesian market, before expanding to export-oriented products.