From Vietnam to Asia's Roads: VinFast's Electric Vehicle Expansion

Vietnamese electric vehicle manufacturer VinFast is shifting its strategic focus to Asia, announcing plans to open new car assembly facilities in India and Indonesia this year.

According to Pham Nhat Vuong, Chairman of VinFast’s parent company Vingroup, the Indian facility is set to begin operations by the end of June, with the Indonesian plant scheduled to follow in October.

In India, VinFast has taken significant steps towards establishing a long-term presence. In 2023, the company signed a memorandum of understanding with the southern state of Tamil Nadu to explore a potential investment of up to USD 2 billion, including an initial commitment of USD 500 million over the first five years. The plant is expected to have an annual production capacity of 150,000 vehicles.

Construction of the Indonesian facility began in July 2024, further underscoring the company’s commitment to tapping into high-growth markets across Asia.

VinFast’s expansion into these emerging markets reflects a broader strategy to capitalize on rising demand for electric vehicles and the cost advantages offered by the region. This pivot also allows the company to mitigate risks associated with geopolitical tensions and economic uncertainties in Western markets.

News by Rahul Yelligetti.