VinFast Gears Up For 2024 Expansion Into 7 Global Clusters, Including Indonesia

Vietnamese EV maker VinFast Auto VFS intends to expand to seven additional market clusters including Indonesia.

The company said in an SEC filing that it will expand into seven market clusters in Asia, the Middle East, Europe, Africa, and Latin America starting in 2024.

This is in addition to the company's home ground in Vietnam, and initial target markets in North America, France, Germany, and the Netherlands.

In Indonesia, the company plans to start deliveries in 2024 with the right-hand driving models of VF e34 and VF 5. VF6 and VF 7 deliveries will follow, it added.

The company is also looking to establish manufacturing facilities for its EVs and batteries in Indonesia owing to the low cost and availability of domestic raw materials and has set a preliminary investment target of up to $1.2 billion in the long term.

The target amount is inclusive of the $150 to $200 million the company intends to put towards the establishment of a CKD facility with a production capacity in the range of 30,000 and 50,000 cars per year and a target production start date in 2026. The company is presently already building an EV factory in Chatham County, North Carolina, with operations expected to commence in 2025.

Tesla Inc TSLA is also looking to invest in Indonesia. However, last week, Bloomberg reported Indonesia’s coordinating minister for maritime affairs and investment Luhut Panjaitan as saying he doesn't expect the EV giant to invest in the country anytime soon.

Founded in 2017 by billionaire Pham Nhat Vuong, VinFast is a member of the Vietnamese conglomerate Vingroup.

Vinfast shares started trading on the Nasdaq in August following a SPAC merger with Black Spade Acquisition Co. It entered the U.S. market in March with the delivery of 45 SUVs. The company, however, is yet to make a profit.

Price Action: VinFast shares closed up 3.86% at $17.21 on Tuesday and rose 1.1% after hours, according to data from Benzinga Pro.

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