VinFast confirms local EV factory to be completed by end of 2025
Bisnis Otomotif, 27 Aug '25
Vietnamese carmaker VinFast has confirmed that construction of its electric vehicle (EV) factory in Subang, West Java, is progressing as planned.
VinFast Indonesia CEO, Kariyanto Hardjosoemarto, stated that the company will honour its commitment to the Indonesian government by completing the factory by the end of this year.
"The construction process is proceeding according to the established plan and remains on track to be completed by the end of 2025," Kariyanto said on August 26th. According to data from the Ministry of Industry (Kemenperin), the construction progress of VinFast Automobile Indonesia's new facility had reached 77% as of August 18th.
The factory, VinFast's first in Indonesia, is being built on 170 hectares of land with an initial investment of around IDR 3.2 trillion (US$ 195.6 million) and a production capacity of up to 50,000 units per year. Since officially entering the Indonesian market last year, VinFast has introduced four battery electric vehicle (BEV) models: the VinFast VF3, VFe34, VF5, and VF6.
However, the government has noted that part of the factory area is still listed as Sustainable Food Agricultural Land (LP2B) under the spatial planning map, even though no rice field activities currently take place at the site. As a result, VinFast has been asked to provide replacement land three times the size of the factory area with LP2B status, to ensure investment continues while compensating for the affected agricultural land.
Kariyanto emphasised that the company will comply with legal requirements and prioritise environmental sustainability in all its projects.
"Based on all official documents we have obtained to date, there is no record of the designation of Sustainable Food Agricultural Land [LP2B] at the approved location for our factory in Subang," he said. He added that VinFast would continue to follow government directives to ensure smooth investment and sustainable partnerships in Indonesia.
"We appreciate the government's direction, and as part of our ongoing investment and partnership in Indonesia, we remain committed to maintaining good-faith communication with the authorities," Kariyanto concluded.
The government has also highlighted land status concerns in relation to a similar project by BYD. West Java Governor Dedi Mulyadi stated that both electric vehicle factories have the potential to create significant employment opportunities but require adjustments to meet spatial planning regulations.
