VinFast secures funding for electric vehicle plant in Indonesia
- VinFast signed a long-term syndicated loan agreement in Jakarta for its electric vehicle assembly plant.
- The loan, valued at IDR 1.85 trillion, was facilitated by Bank Negara Indonesia and Maybank.
- This funding is crucial for VinFast's plans to expand its production capabilities and contribute to Indonesia's green transportation transition.
On May 2, 2025, in Jakarta, Indonesia, VinFast, a prominent electric vehicle manufacturer, announced a significant financial agreement involving a long-term syndicated loan. The agreement, which is valued at IDR 1.85 trillion (approximately US$110 million), includes an additional US$80 million accordion facility intended to support the construction of VinFast's electric vehicle assembly plant located in Subang, West Java. This financial collaboration is made possible through partnerships with Bank Negara Indonesia (BNI) and PT Bank Maybank Indonesia Tbk (Maybank), with BNI acting as the lead arranger and handling the underwriting aspects of the loan. The financing represents a crucial step for VinFast as it seeks to bolster its global expansion and production capabilities in the rapidly evolving electric vehicle market. The inclusion of a green financing approach illustrates the commitment from BNI to support sustainable transport initiatives. BNI is set to back IDR 1.51 trillion (approximately US$90 million) of the loan, while Maybank will contribute the remaining portion. This investment aligns with VinFast's vision of enhancing Indonesia's electric vehicle ecosystem, which is increasingly vital as the country transitions toward greener transportation options. In tandem with securing this financing, VinFast's assembly facility in Subang is scheduled to begin operations in the latter half of 2025, cementing its role as a critical manufacturing hub for electric vehicles aimed at the Indonesian and broader export markets. The plant is expected to significantly contribute to the local automotive industry and create numerous job opportunities, further supporting Indonesia's economic growth. It will additionally serve as a vital component of VinFast's strategy to provide eco-friendly mobility solutions that align with the global shift towards electric vehicles. The deal maintains the momentum for VinFast as it introduces various electric vehicle models in Indonesia, including the RHD variant of the VF 3, VF 5, and VF e34. Through strategic partnerships, such as its collaboration with Green SM, an all-electric taxi operator, and V-GREEN, an infrastructure developer for global charging networks, the company is actively promoting a comprehensive ecosystem dedicated to sustainable transportation. These efforts signify VinFast's ambition not only to expand its product line but to also enhance the infrastructure required for electric vehicles in Indonesia, ultimately fostering a greener future for Indonesian consumers.