In addition to the Indian facility, VinFast plans to invest $200 million in a manufacturing plant in West Java, Indonesia, which is expected to begin operations in October 2025 with a production capacity of 50,000 vehicles annually.

VinFast, a Vietnamese electric vehicle manufacturer, is set to open a car assembly plant in India by the end of June 2025, marking a significant strategic shift towards Asian markets.

The company has secured an agreement with the Tamil Nadu government to invest up to $2 billion, starting with an initial commitment of $500 million over the first five years.

This move to establish plants in India and Indonesia will allow VinFast to localize production, reduce high operational costs in Western markets, and align with strong regional demand and regulatory support.

The Indonesian assembly factory, which is already under construction, is on track to be operational by October 2025.

The planned plant in India is expected to have an annual production capacity of 150,000 vehicles.

VinFast's pivot towards Asian markets comes after operating at a loss and facing delays in the U.S., compounded by uncertainties regarding tariffs.

Currently, the company is not planning to increase sales in the U.S., Canada, or the European Union due to high logistics costs.

This strategic shift follows VinFast's entry into the U.S. market, where it sold 97,399 vehicles in 2024 but reported a net loss of over $3 billion, underscoring the challenges of scaling in a competitive environment.

These investments will help solidify Vietnam's industrial presence in Asia and enable VinFast to leverage regional trade agreements and expanding logistics routes.

VinFast CEO Pham Nhat Vuong announced these developments on April 24, 2025, signaling a departure from the company's previous focus on American expansion.

Pham Nhat Vuong emphasized that the company's future focus will be on Vietnam, Indonesia, India, and the Philippines.