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INDONESIAN PRESIDENT WELCOMES VINFAST'S AMBITIOUS PLANS FOR EXPANSION

Driving Sustainable Growth: VinFast's Electric Vehicle Expansion Signals a Green Future for Indonesia

17.01.2024
BY JACKSON KEEFE
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In a significant move towards fostering international collaboration in the electric vehicle (EV) sector, Indonesian President Joko Widodo visited the VinFast factory in the northern Vietnamese city of Haiphong on Saturday. During the visit, President Widodo expressed his commitment to creating favorable conditions for VinFast, a leading Vietnamese automaker, to swiftly establish a plant and invest in Indonesia.

President Widodo, after touring the sprawling VinFast facility, even had the opportunity to sit behind the wheel of one of VinFast's cutting-edge electric cars. The visit marked the conclusion of the President's three-day diplomatic mission to Vietnam.

VinFast has revealed plans to invest $1.2 billion in Indonesia, with intentions to construct a factory capable of producing up to 50,000 vehicles annually. In addition to VinFast's commitment, Green SM, an EV taxi operator predominantly owned by VinFast’s founder, has announced a substantial investment of $900 million in Indonesia. The company had previously entered into an agreement with Indonesian technology firm PT GoTo Gojek Tokopedia Tbk, the parent company of Gojek transportation services, to facilitate the transition of their taxi service to electric vehicles.

This strategic expansion into the Indonesian market is aligned with VinFast's broader global objectives, aiming to introduce EVs in 50 markets worldwide. VinFast has been actively exporting EVs to the United States and is in the process of constructing a $4 billion EV factory in North Carolina, with production scheduled to commence later this year.

Earlier this month, VinFast revealed plans to allocate up to $2 billion for the establishment of an electric vehicle factory in India, the world's third-largest auto market by sales. This move emphasizes the company's commitment to achieving a global presence and contributing to the transition to sustainable transportation solutions.

VinFast, a subsidiary of Vingroup, originally started as an instant noodle company in Ukraine during the 1990s and has evolved into a sprawling conglomerate. Founded and led by Vietnam's wealthiest individual, Pham Nhat Vuong, VinFast continues to make waves in the EV industry with its ambitious expansion plans.

The collaboration between VinFast and Indonesia is particularly noteworthy in the context of the Group of Seven advanced economies' commitment to providing financial support to both Vietnam and Indonesia for transitioning away from fossil fuels. This initiative, known as the Just Energy Transition Partnership, underscores the global effort to promote sustainable and clean energy solutions.

As VinFast continues to make strides in the EV sector, its partnership with Indonesia marks a pivotal moment in the Southeast Asian automotive industry, with potential economic and environmental benefits for both nations.

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