VinFast has inaugurated its first electric vehicle (EV) manufacturing facility in Indonesia, marking a strategic push into Southeast Asia beyond Vietnam. The US$1Bn investment underscores the company’s ambition to scale regional production; however, expansion comes amid sustained financial losses and intensifying global competition.

VinFast inaugurated its EV manufacturing facility in Subang, West Java, on 15 December, representing its fourth operational plant globally and its first in Indonesia and Southeast Asia outside of Vietnam. The 171-hectare site is being developed in multiple phases, with a planned total investment exceeding US$1Bn. Phase 1 alone accounts for more than US$300M and targets an initial annual capacity of 50,000 vehicles.

In its initial phase, the Subang plant will assemble right-hand-drive VF 3, VF 5, VF 6, and VF 7 models for Indonesia, with plans to add electric two-wheelers and a commercial-focused electric multi-purpose vehicle from 2026. This line-up aligns with Indonesia’s mobility mix, where two-wheelers and fleet vehicles dominate urban transport.

Despite its strong domestic footprint, VinFast’s financial performance remains under pressure. The company reportedly delivered 147,450 EVs in Vietnam between January and November 2025, maintaining its position as the country’s leading EV manufacturer. However, scale has not translated into profitability. VinFast reported a net loss of approximately US$2.5Bn for the January–September 2025 period, widening from nearly US$2Bn in losses over the same period in 2024.

Against this backdrop, international expansion appears both necessary and high-risk. Facing losses in Vietnam, VinFast is exploring alternative revenue streams such as EV rental programs, secondary-market sales, and electric scooters and e-bikes, whilst simultaneously entering new markets.

However, external markets are proving to be as competitive as the domestic market. In India, for instance, EV sales are largely dominated by local manufacturers, whilst global players such as Tesla, BMW, BYD, and Hyundai are increasing competitive intensity.

Globally, automakers face mounting pricing pressure from Chinese competitors and the gradual roll-back of EV subsidies. In China, pricing guidelines—as being discussed by the industry following the release of a draft by China’s State Administration for Market Regulation—may help curb extreme price wars; however, their impact will depend on enforcement and industry compliance. Overall, VinFast’s Indonesia investment reflects long-term strategic intent, yet success will hinge on localisation, cost control, and differentiation, as expansion alone may not offset ongoing financial losses.