Vietnamese EV-maker VinFast has broken ground on a $200m factory in Subang in West Java.
The plant, which will have a maximum capacity of 50,000 vehicles a year, will contain a body shop, general assembly line, paint shop, testing area and will employ thousands of local workers.
VinFast has already launched two SUV models in Indonesia, and has opened a network of car dealerships, created flexible pricing options and introduced a battery subscription programme.
H Moeldoko, the chief of staff of the Indonesian presidency, said: “The government heavily encourages foreign investment entering our country, especially in the automotive industry sector.
"We believe that VinFast’s presence will bring technological innovation and knowledge transfer that is much needed to increase the competitiveness of the national automotive industry.”
The Subang factory is due to be operational in the last quarter of next year.
In April 2024, construction was paused at VinFast’s $4bn factory in North Carolina while a review was carried out into its size.
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