VinFast gets greenlight from Indonesia’s Jokowi for expansion

Indonesian President Joko Widodo (left) visiting the VinFast manufacturing complex in Hai Phong, Vietnam / Photo credit: Vingroup

Indonesian President Joko Widodo – more popularly known as Jokowi – has given approval for Vietnamese automotive company VinFast to move forward with its planned expansion into Indonesia.

Vingroup, the electric vehicle brand’s parent firm, made the announcement following Jokowi’s visit to the VinFast manufacturing complex in Hai Phong, Vietnam on January 13.

VinFast has aimed to invest US$1.2 billion in Indonesia over the long term. This includes US$200 million to build an EV manufacturing plant in Indonesia by 2026, with an anticipated production capacity of 30,000 to 50,000 units annually.

“The President said that he would create all necessary conditions for VinFast to quickly complete the investment procedures for production and business in the Indonesian market,” Vingroup said in a statement.

Along with Vingroup’s ride-hailing firm Green and Smart Mobility (GSM), VinFast is partnering with Indonesia’s GoTo Group to promote the use of four-wheel EVs among Gojek drivers.

GSM also said it wants to invest up to US$900 million in Indonesia, without disclosing details.

Besides Vietnam, VinFast – which debuted on the Nasdaq via a SPAC merger in August last year – also operates in the US, Canada, Germany, France, and the Netherlands.

The company recorded US$342.7 million in revenue for the third quarter of 2023, a 159.3% year-on-year jump mainly driven by higher EV sales.

See also: Vingroup founder’s EV play revs up Vietnam’s ride-hailing race