Vietnamese EV maker VinFast signs loans worth $190 mln for Indonesia plant

VinFast, the electric vehicle arm of Vietnam's leading private conglomerate Vingroup, has secured a long-term syndicated loan agreement worth IDR1.85 trillion ($110 million) and an $80 million accordion facility from two Indonesian banks to finance the construction of its plant in Indonesia.

The two banks are state-owned Bank Negara Indonesia (BNI) and PT Bank Maybank Indonesia Tbk (Maybank).

Under the agreement, BNI will be the lead arranger of the financing and will handle the underwriting for the syndicated loan of IDR1.85 trillion, VinFast said in a press release on Saturday.

Of the total, BNI will finance IDR1.51 trillion ($90 million), with the remainder to be provided by Maybank.

This loan is intended to finance the construction of PT VinFast Automobile Indonesia's EV manufacturing plant in Subang, West Java.

On top of that, the parties will proceed with the additional $80 million extension facility. 

“This will be a vital catalyst for VinFast's expansion in Indonesia, continuously enhancing our global production capabilities to meet the ever-increasing demand for the electric vehicle transition,” said CEO of VinFast Asia Pham Sanh Chau.

In July 2024, VinFast broke ground on its EV assembly plant in Subang.

This facility is projected to become a pivotal manufacturing hub for VinFast's EVs, serving both Indonesian and export markets, while simultaneously bolstering the local automotive industry's supply chain.

VinFast is solidifying its position and expanding its footprint in Indonesia through the launch and delivery of a diverse portfolio of all-electric vehicles, including RHD variant of VF 3, VF 5, and VF e34 models.

Vingroup chairman Pham Nhat Vuong told the conglomerate’s 2025 AGM on April 24 that VinFast’s Indonesian plant could be completed by year-end, adding the project is expected to significantly boost the EV maker’s overseas sales once operational.

VinFast recorded robust revenue growth in its unaudited Q4 and 2024 financial statements, driven by strong vehicle deliveries despite global market uncertainties.

EV deliveries were 53,139 in Q4/2024, up 143% from Q3. Its business-to-consumer (B2C) sales in the quarter marked a 140% increase quarter-over-quarter and a remarkable over 20-fold increase year-over-year.

For the whole 2024, deliveries were 97,399, up approximately 192% from 2023.

VinFast's total Q4 revenues hit VND16,496 billion ($677.9 million), a surge of 69.8% from Q4/2023 and 33.8% from the previous quarter.

The EV manufacturer's 2024 revenues reached VND44,020 billion (nearly $1.81 billion) in 2024, a 57.9% leap from 2023. Net loss was VND77,355 billion ($3,179 million).