Jakarta. Vietnamese electric vehicle manufacturer VinFast has confirmed Indonesia as one of its main production bases in Southeast Asia, marked by the inauguration of its manufacturing plant in Subang, West Java, on Monday.

VinFast Asia chief executive Pham Sanh Chau said the Subang facility is the company’s second factory outside Vietnam, following an earlier expansion into India, underscoring VinFast’s ambition to scale rapidly as a global automaker.

“This is strong proof of VinFast’s capability and speed as a global company,” Chau said.

The Subang plant has an initial production capacity of around 50,000 vehicles per year and has been designed to allow future expansion to as much as 350,000 units annually, in line with rising demand and broader market reach.

To support that expansion, VinFast has committed up to $1 billion in investment, Coordinating Minister for Economic Affairs Airlangga Hartarto said during the inauguration ceremony.

“Their investment commitment in Indonesia reaches $1 billion, or about Rp 16 trillion. This will be used to expand production capacity from 50,000 units to 350,000 units per year,” Airlangga said.

The Indonesian government has welcomed the move, citing its potential multiplier effects on the economy, including job creation and the strengthening of domestic supporting industries.

VinFast Trading Indonesia chief executive Kariyanto Hardjosoemantoro said the new factory is expected to initially employ around 900 workers directly.

“In the next stages, our workforce could grow to between 5,000 and 15,000 employees, depending on the factory’s operational needs,” Kariyanto said.

Construction of the Subang plant began around 17 months ago on nearly 10 hectares of land, with an initial investment of about $300 million, he added.

The facility’s presence in Indonesia is also expected to shorten distribution times for VinFast vehicles, serving both the domestic market and the wider Southeast Asian region, given the country’s strategic location.

Battery Leasing to Lower Prices
To make its electric vehicles more affordable, VinFast is offering a battery leasing scheme in Indonesia as an alternative to engaging in aggressive price competition, Kariyanto said.

Under the scheme, customers can purchase vehicles without batteries at a lower upfront price and lease the battery separately. As an example, the VinFast VF 3 is priced at around Rp 209 million with a battery included, while the battery leasing option reduces the purchase price to about Rp 145 million.

Beyond the lower entry price, battery leasing also provides customers with assurance that battery performance and maintenance remain the responsibility of VinFast, helping ensure long-term reliability and optimal condition.

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