VinFast opens EV production facility in Subang

MANILA: VinFast has formally inaugurated its electric vehicle (EV) production plant in Subang, West Java, Indonesia.

Situated in a 171-hectare site, the newly-opened establishment is being developed in multiple phases with a total investment of more than $1 billion. For the subsequent phases, its production capacity can be scaled up to 350,000 vehicles annually.

In a statement, the Hai Phong-headquartered marque shared that the newest development is meant to boost its global production network and strengthen its long-term commitment to Indonesia.

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“The plant is poised to significantly strengthen VinFast’s local competitiveness, accelerate localization efforts, generate high-quality employment, and play a pivotal role in advancing the nation’s electric vehicle industry,” it added.

Per VinFast, the Subang plant was completed 17 months after it broke ground there — making it the brand’s fourth operational facility worldwide, and its first plant in Indonesia and Southeast Asia outside of Vietnam.

Further, the EV manufacturer shared that bringing the plant into operation highlights VinFast’s firm commitment to promoting localization in alignment with the Indonesian Government’s strategy for developing the national electric vehicle industry.

Based on its roadmap, the plan is to increase localization rate to more than 40 percent by next year, 60 percent by 2029 and 80 percent from 2030 onwards following the Indonesia Government on industrial localization regulation, while actively fostering a supporting industrial ecosystem around the Subang complex.

 “We highly commend VinFast for inaugurating its electric vehicle plant in Subang on schedule. This project closely aligns with the Government’s green industrial development agenda and serves as a strong catalyst for the local economy, particularly in job creation, workforce quality enhancement, and the growth of a supporting industrial ecosystem,” Coordinating Minister for Economic Affairs Dr. (H.C.) Ir. Airlangga Hartarto in his speech.

“With the scale and stature of this project, we firmly believe VinFast will become a key anchor, helping position Subang as a new EV industrial hub of the region in the near future,” he added.

For his part, VinFast Asia Chief Executive Officer Pham Sanh Chau said that the inauguration of the Subang plant is a testament to VinFast’s strong execution capabilities and a strategic milestone in its long-term commitment to Indonesia.

“We firmly believe that localization is a decisive foundation for VinFast’s sustainable success in this market, while also directly contributing to the Indonesian Government’s objectives of economic growth, industrial development, and job creation. With the Subang plant now officially in operation, VinFast has completed one of the most comprehensive and integrated electric vehicle ecosystems in Indonesia, reaffirming our commitment to long-term partnership and shared value creation with the country.”

Subang plant multi-phase development

For the initial phase, VinFast is investing over $300 million, with the plant achieving an initial capacity of 50,000 vehicles annually. The production line includes Body Welding, Painting, Assembly, Quality Inspection Center, and Logistics Warehouse.

Notably, the project also has allotted land for the development of a supporting supplier park for local contractors and businesses.

At full capacity, the VinFast Subang plant is expected to create between 5,000 and 15,000 direct jobs for local workers, along with thousands of indirect jobs across the supply chain and related services. This will serve as a powerful driver for the socio-economic development of Subang, which is being positioned as a new industrial growth center of West Java.

In the initial phase, the factory will focus on assembling VF 3, VF 5, VF 6 and VF 7 (in right-hand drive configurations), for the Indonesian market and will also be responsible for assembling new models scheduled for launch in Indonesia in 2026, including electric two-wheelers, and electric multi-purpose vehicle optimized for commercial and service-oriented mobility operations.

Moreover, the plant will serve as a critical backbone for VinFast’s comprehensive “For a Green Future” ecosystem in Indonesia.

“In less than two years of presence in the market, the Company has introduced a diverse product portfolio while continuously expanding its service ecosystem, from a robust dealer network and aftersales centers to a widespread charging infrastructure enabled through collaboration with global charging developer V-Green, as well as partnerships with leading banks and financial institutions. Through pioneering policies and customer-centric solutions, VinFast is actively accelerating the green transition, reaffirming its role as a trailblazer in Indonesia’s green mobility revolution and across the wider region,” the firm concluded.

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