VinFast Expands Operations with New Plants in India and Indonesia

VinFast plans to open car assembly plants in India by June and in Indonesia by October 2023, shifting focus from the U.S. market. The company is investing significantly in these regions, aiming to bolster production capacity and navigate logistical challenges in North America and Europe.

VinFast, a Vietnamese electric vehicle manufacturer, intends to establish car assembly plants in India and Indonesia in 2023, shifting its strategic focus to Asia. The planned Indian facility is expected to open by the end of June, while the Indonesian plant is slated for October. This change comes as the company reorients from its initial focus on the American market due to delays and heightened uncertainty stemming from U.S. tariffs.

Pham Nhat Vuong, the founder of VinFast, conveyed to shareholders that in addition to the Vietnamese market, the company will prioritize growth in Indonesia, India, and the Philippines. He indicated that VinFast is not looking to increase sales in the U.S., Canada, and the European Union at this time due to high logistics costs.

In collaboration with Tamil Nadu, VinFast secured a commitment of up to $2 billion last year, with an initial investment of $500 million in the first five years. This investment aims to establish a plant with a production capacity of approximately 150,000 vehicles annually. Moreover, VinFast broke ground on its Indonesian assembly factory in July 2022, which is expected to commence operations in October.

VinFast is strategically shifting its focus towards Asian markets by establishing assembly plants in India and Indonesia this year, following challenges in the U.S. market. The company is not pursuing sales growth in North America or Europe due to logistical challenges. With significant investments planned, VinFast aims to enhance its production capacity in Asia, demonstrating a commitment to expanding its operations and influence in the region.

Original Source: www.tradingview.com