Indonesian leader pledges backing for VinFast's development plans during Vietnam trip

(MENAFN) Indonesian President Joko Widodo visited the VinFast factory in Haiphong, northern Vietnam, expressing his commitment to create favorable conditions for the Vietnamese automaker to establish a plant and invest in Indonesia swiftly. During the visit, President Widodo also had the opportunity to test drive a VinFast electric car, concluding his three-day trip to Vietnam.

VinFast, a prominent Vietnamese electric vehicle (EV) manufacturer, has unveiled plans to invest USD1.2 billion in Indonesia, with intentions to construct a factory capable of producing up to 50,000 vehicles annually. Green SM, an EV taxi operator predominantly owned by VinFast's founder, concurrently announced a USD900 million investment plan in Indonesia. The company, in collaboration with Indonesian technology firm PT GoTo Gojek Tokopedia Tbk, is dedicated to facilitating the transition of their taxi services to electric vehicles. VinFast's expansion into Indonesia aligns with its broader global strategy of selling EVs in 50 markets worldwide. The company is already exporting EVs to the U.S. and is in the process of building a USD4 billion EV factory in North Carolina, slated to commence production later this year.

VinFast's recent announcement also includes plans to invest up to USD2 billion in constructing an electric vehicle factory in India, the world's third-largest auto market by sales. This underscores the company's ambition to establish a significant presence in diverse automotive markets globally.

VinFast, a subsidiary of the Vingroup conglomerate, initiated as an instant noodle company in Ukraine in the 1990s and is currently led by Vietnam's wealthiest individual, Pham Nhat Vuong. The strategic expansion into Indonesia is part of VinFast's broader vision to contribute to the global transition away from fossil fuels, aligning with the commitments made by both Vietnam and Indonesia to transition toward cleaner energy. These initiatives have received support from the Group of Seven advanced economies, emphasizing a Just Energy Transition Partnership.

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