- Beyond Indonesia, VinFast has its sights set on entering markets in India, Malaysia, the Middle East, Africa, Latin America, and Europe, identifying up to 50 potential markets for expansion.
- VinFast plans to raise capital from global investors over the next 18 months to fuel its expansion plans.
Vietnamese electric vehicle manufacturer VinFast is set to make significant strides in the Asian market, with its eyes on expanding into seven new countries, including India.
It plans to start with Indonesia to commence deliveries next year and establish a production plant by 2026 as Indonesia is actively courting global electric vehicle manufacturers, boasting ample supplies of nickel—a crucial component in EV batteries.
In its filing, the EV manufacturer also disclosed its intentions to establish a presence in India, Malaysia, the Middle East, Africa, and Latin America, and to expand its footprint in Europe, identifying between 40 and 50 potential markets. VinFast aims to establish its distribution networks and may open showrooms in these regions.
The company has outlined its intention to invest approximately $1.2 billion in the Indonesian market over the long term, as revealed in its latest submission to the U.S. Securities and Exchange Commission. Up to $200 million is earmarked for the Indonesian plant, with a production target of 30,000 to 50,000 units annually by 2026.
It is a major strategic step by the company as despite being Southeast Asia’s largest economy with a population of 270 million, EVs currently make up less than 1% of the vehicles on Indonesian roads. The Indonesian facility will mark VinFast’s third manufacturing site, in addition to its primary plant in the northern Vietnamese city of Haiphong and a new facility in North Carolina, slated to commence operations in 2025.
VinFast, is controlled by Pham Nhat Vuong, Vietnam’s wealthiest individual and the founder of Vingroup. Since its establishment in 2017, VinFast has unveiled an array of international expansion plans in the electric vehicle sector. Initially, it entered the American market amid pricing pressures in the electric vehicle sector, with Tesla and various Chinese companies leading. While the company has yet to profit, it aims to raise capital from global investors over the next 18 months.
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