RALEGH – VinFast, the Vietnam-based manufacturer building an electric vehicle plant in Chatham County, plans to invest as much as $1.2 billion through an expansion program in Indonesia.
That expansion will include a $200 million factory, VinFast says in an SEC filing.
The moves are part of the company’s growth strategy that it says has identified “between 40 and 50 markets globally.”
VinFast aims to begin production at its factory near Sanford in Chatham County in 2025. It recently broke ground for the facility.
The news comes even as VinFast (VFS) stock has plunged in value to under $18 after reaching a high of $93 in a rollercoaster performance since the company went public on Aug. 15, thus shedding billions in value.
In the filing, VinFast explained
“We have identified between 40 and 50 potential markets globally and also plan to engage high-quality distributors to import and distribute VinFast cars into local markets starting from 2024. We have signed memorandums of understanding and distribution agreements with various car importers and distributors across Asia, Europe and the Middle East. We may consider establishing distribution companies and expanding our presence in these markets in the long term.
“We plan to commence deliveries of our EVs in Indonesia in 2024 with right-hand driving models of the VF e34 and VF 5, with the VF 6 and VF 7 to follow. We have also identified Indonesia from among our seven new market clusters as a key potential market for the potential establishment of manufacturing facilities for our EVs and batteries due to the relatively low cost and availability of domestic raw materials. Based on our evaluation of the market opportunity in Indonesia, we have set a preliminary investment target of up to approximately $1.2 billion into Indonesia in the long-term. The target includes approximately $150 to $200 million that we envision applying toward the establishment of a Completely Knocked Down facility, or “CKD facility,” with production capacity in the range of 30,000 and 50,000 cars per year and a target production start date in 2026. Additional investments in the country up to the preliminary investment target would be subject to market conditions and other factors.”