VinFast, the Vietnam-based electric vehicle manufacturer, is speeding ahead with the construction of its assembly plant in Subang, West Java. This strategic move is part of its broader ambition to grow a full-fledged electric vehicle (EV) ecosystem in Indonesia. The company is targeting to commence operations by the end of 2025.
Construction On Track and On Schedule
According to CEO of VinFast Indonesia, Kariyanto Hardjosoemarto, all construction phases are progressing smoothly and according to plan. Speaking at Epiwalk Mall in Jakarta on June 17, 2025, he stated, “All development is running smoothly, on track, according to plan. We expect our plant to be operational by the end of 2025.”
The plant covers approximately 120 hectares of land in Subang. VinFast has earmarked an initial investment of around US$1.2 billion, roughly IDR 19.2 trillion at current exchange rates. This investment is expected to anchor long-term operations in Indonesia.
Manufacturing Capacity & Initial Models
Once operational, the Subang facility is slated to achieve an annual production capacity of up to 50,000 vehicles. In the early stages, production volume will be moderated to match domestic demand, gradually ramping up over time.
The first model to roll off the line will be the compact VF3, tailored for emerging markets and right-hand-drive usage. CEO Kariyanto confirmed this, noting subsequent models will follow. Production methods and standards will align with those used at VinFast’s facilities in Vietnam, ensuring consistency and quality.
Economic and Environmental Impact
The facility is expected to create employment opportunities for between 1,000 and 3,000 people, contributing significantly to local economic growth.
Beyond just manufacturing, the plant will operate as a full-scale EV assembly hub with dedicated zones for the Body Shop, General Assembly, Paint Shop, and testing facilities. Its establishment is also part of Indonesia’s broader ambitions to move toward carbon neutrality by promoting clean energy vehicles.
Integration with EV Ecosystem
VinFast’s investment extends beyond vehicle assembly. It is also committed to developing a supportive EV infrastructure and warranty ecosystem in Indonesia. The company’s buyback guarantee—covering 90% of a vehicle’s value after six months, 86% after one year, 78% after two years, and 70% after three years—helps address consumer concerns about depreciation. This program is contingent upon maintaining servicing at official VinFast centers.
Moreover, VinFast Indonesia provides a long-term warranty: 10 years or 200,000 km for vehicles, and a 10-year unlimited distance warranty on battery packs.
Regarding charging infrastructure, the brand is developing its V-GREEN network in major cities like Jabodetabek, Bandung, and Surabaya, among other parts of the country. The goal is to reach 63,000 charging stations by end-2025 and scale to 100,000 within three years.
Strategic Focus on Right‑Hand‑Drive Markets
Indonesia’s automotive market uses right-hand-drive (RHD) configurations. VinFast recognizes this and will produce RHD vehicles locally to serve local consumers better, while also tapping into the demand across other RHD markets in Southeast Asia.
Investment Size and Government Collaboration
Initial funding of approximately US$1.2 billion (IDR 18.7–19.2 trillion) includes both plant construction and supporting facilities. Other sources mention an investment figure up to IDR 4 trillion (USD ~250–300 million) for infrastructure in Subang, according to Indonesia’s Investment and Industry Minister Rosan Roeslani.
Minister Roeslani emphasized that construction is progressing on a 120-hectare site with a projected capacity to produce 50,000 EVs annually.
Broader ASEAN Growth Strategy
VinFast’s Subang plant is part of a wider strategy to expand across Southeast Asia. Earlier in 2025, the company signaled its intent to finalize the facility before year-end alongside a similar plant in India. This aligns with their goal to meet regional demand in RHD markets like Indonesia, India, and the Philippines.
They have also previously announced assembly plants in Vietnam, the U.S., and Europe, but specifically targeted high-growth Asian markets with RHD requirements.
What’s Next?
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Estimated Opening: End of 2025—possibly as early as October, according to some local media reports.
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Start Model: VF3 will be produced first, then followed by models like VF5, VF6, and VF7.
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Supporting Infrastructure: Continued roll-out of the V-GREEN charging network and expansion of support programs like buyback guarantees.
VinFast is actively building a major electric vehicle plant in Subang, West Java, with a strong plan to start operations by the end of 2025. The plant is designed to manufacture up to 50,000 right-hand-drive electric vehicles annually, beginning with the VF3. This initiative is part of a wider strategy to enhance Indonesia’s EV adoption through localized production, extensive charging infrastructure, attractive financing and buyback schemes, and long-term warranties.
The total investment ranges from US$1.2 billion to possibly IDR 4 trillion. Upon launch, the plant is expected to employ thousands and support the country’s shift toward carbon neutrality, while embedding VinFast deeply into the competitive ASEAN electric vehicle landscape.
Let me know if you’d like further details on timelines, technology partnerships, or comparisons with other EV manufacturers in Indonesia!
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