VN’s VinFast Market Expansion: $400 Million Investment in EV Factories in India and Indonesia

• 26 October 2023
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Vietnamese electric vehicle (EV) manufacturer VinFast is gearing up for a substantial expansion, with plans to establish manufacturing facilities in India and Indonesia. These ambitious moves are backed by a projected $1.2 billion capital infusion from its founder and other investors. VinFast, a Nasdaq-listed company, envisions entering 50 markets worldwide by the close of 2024,  according to Asia Nikkei news on October 6, 2023.

The company’s latest securities filing highlights its strategic shift in capital allocation, resulting in $400 million in savings. This substantial fund will be evenly divided to support the initial phases of two new production plants.

VinFast’s statement explains, “These savings are expected to be used toward building CKD factories in Indonesia, the most populous country in Southeast Asia, and India, the third largest auto market in the world.” CKD, referring to cars that are completely knocked down, suggests VinFast’s intention to ship such units from Hai Phong, Vietnam, for assembly in both India and Indonesia. The company aims to achieve an annual EV production capacity of 50,000 units per facility, with manufacturing slated to commence in 2026.

In the third quarter, VinFast reported sales of 10,027 EVs, a modest uptick from the 9,535 units sold in the second quarter. Notably, a significant portion of these sales were supplied to founder Pham Nhat Vuong’s taxi company.

In May, VinFast made a pivotal announcement that it would introduce EVs across Southeast Asia, Europe, and Canada. This year, it etched its name in history as the first Vietnamese firm to export vehicles to the U.S. However, these vehicles encountered criticism within the industry, leading to recalls over safety concerns. Alongside its EVs, VinFast also manufactures electric motorbikes and buses in its home base of Vietnam.

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