- Vietnam’s VinFast plans to build 100,000 electric vehicle charging stations across Indonesia, Jakarta’s investment minister said.
- Indonesia has been offering several incentives to boost its EV market, including a luxury goods tax exemption that has boosted sales and seen a flurry of key brands entering the country of 280 million people.
Vietnam’s VinFast plans to build 100,000 electric vehicle charging stations across Indonesia, Jakarta’s investment minister said, as the EV manufacturer pushes into the burgeoning industry in Southeast Asia’s biggest economy.
Indonesia, home to the world’s largest nickel reserves, has been seeking to position itself as a regional EV hub and a key player in the global EV supply chain.
Investment Minister Rosan Roeslani stated VinFast plans to build up gradually the number of charging stations pledged without providing more details.
State news agency Antara reported that the company will also begin construction of an electric vehicle factory in West Java province, which will cost more than $200 million and aim to produce 50,000 vehicles annually.
The investment commitment came in a meeting between Indonesian President Prabowo Subianto and VinFast representatives in the capital, Jakarta.
Indonesia has been offering several incentives to boost its EV market, including a luxury goods tax exemption that has boosted sales and seen a flurry of key brands entering the country of 280 million people.
According to the transportation ministry, 195,084 electric vehicles were registered in Indonesia in November 2024, but uptake remains a challenge because of their price and a lack of charging points.
Car sales in Indonesia last month remained dominated by Japanese manufacturers such as Toyota, Honda and Daihatsu, but Chinese carmakers like BYD also made inroads, according to figures released by Indonesian industry association Gaikindo.
The plans came after Prabowo met Vietnamese Communist Party General Secretary to Lam in Jakarta and agreed to upgrade ties to a comprehensive strategic partnership.
VinFast, Vietnam’s first homegrown car manufacturer, hopes to compete with global EV giants such as Tesla but has struggled to break into the international market.
It lost almost $2 billion in the first three quarters of 2024, according to company data, after recording $2.4 billion in losses the previous year.
However, the venture has received strong backing from CEO Pham Nhat Vuong, Vietnam’s richest person, as well as parent company Vingroup.
Vuong pledged last year to inject $3.1 billion into the EV maker and Vingroup said they would also give $1.4 billion in new funding. Doha-based JTA Investment
Qatar signed a memorandum of understanding this month to explore a potential $1 billion investment in VinFast, according to Vingroup. The partnership aims to support VinFast’s “global expansion and technological development”, Vingroup said.