Vietnam automaker VinFast inks EV supply deal with Indonesian firms

VinFast, the carmaker subsidiary of Vietnamese conglomerate Vingroup, has signed a memorandum of understanding (MoU) with three Indonesian business clients to provide 600 electric vehicles.

In a Thursday release, VinFast said the deal was signed at the Indonesia International Motor Show (IIMS) 2024, an event where VinFast displayed its line of right-hand drive EVs.

The deal would open up an avenue for the Vietnamese EV maker to tap the strong potential of the Indonesian market while promoting green transportation development in the region, VinFast said.

Per the MoU, VinFast will provide 600 EVs to three Jakarta-based companies: PT. Energi Mandiri Bumi Pertiwi; PT. Sumber Amarta Jaya; and PT. Teknologi Karya Digital Nusa Tbk.

The two EV models in A and B-SUV segments mentioned in the MoU, which will be launched in the Indonesian market soon, will serve the companies’ goal of expanding their respective corporate fleets.

The release quoted VinFast Indonesia CEO Tran Quoc Huy as saying: "This MoU reflects not only the great potential of the EV market in Indonesia, but also VinFast’s competitiveness in the international market."

VinFast’s expansion into Indonesia represents a strategic enhancement of its global presence and distribution network, bolstering its position in the global EV industry, the automaker said.

In January, during a Vietnam-Indonesia high-level business dialogue, Indonesian President Widodo urged VinFast to expand its investment in the electric vehicle field. He visited the automaker’s electric vehicle manufacturing complex in the northern port city of Hai Phong.

In September 2023, VinFast had announced a long-term plan to invest at least $1.2 billion in Indonesia. Apart from distributing imported cars from Vietnam in the first phase, it will build a $200-million EV factory in the country with an expected annual capacity of 30,000-50,000 vehicles, the Vietnamese automaker said.