VinFast's Optimism and Confidence in the Indonesian Market

VinFast Indonesia dealers recently had the opportunity to visit Vietnam to witness and experience the VinFast ecosystem first-hand. The visit aimed to provide a deeper understanding of how a fully integrated industry and service operation functions at scale, whilst also inspiring further development in Indonesia.

At the Hai Phong manufacturing complex, VinFast Indonesia dealers observed a high level of automation, vertically integrated supply chains, and internationally benchmarked quality control systems. However, what left the deepest impression was the broader architecture — VinFast Vietnam’s efforts to develop industry, education, healthcare, and hospitality. The company has built a foundation for sustainable, long-term growth rather than pursuing short-term expansion.

“From the factory to the university, hospital, and hotel, everything reflects large-scale execution capability and long-term strategic vision,” said Hartono Kurniawan, Director of VinFast Dealerships in Regol–Bandung, Pekanbaru–Riau, and West Java, in a written statement on Monday (2 February 2026).

Hartono said the development of this ecosystem has had a positive impact on business growth, as an integrated ecosystem enhances trust among international partners.

“It creates significant confidence for international partners,” he said.

It is precisely this confidence in the ecosystem’s foundation that now underpins Indonesian dealers’ expectations for VinFast’s trajectory in Indonesia, particularly as the country’s electrification market enters an acceleration phase.

Multi-Segment Strategy: From Electric SUVs to MPVs

Hartono noted that Indonesia’s automotive market is unique, with seven-seat MPVs remaining strong alongside urban SUVs. VinFast’s multi-segment product strategy aligns with local consumption patterns.

Electric SUV models are already available, whilst the MPV — a strategically critical segment — is being prepared for launch. According to Hartono, this represents a positive signal.

“MPVs are extremely important in Indonesia. If VinFast continues to expand its product portfolio and strengthen its ecosystem support, the brand can compete at the top level,” he said.

A diverse product portfolio not only increases market penetration but also strengthens the brand’s position as a comprehensive manufacturer — an important factor in building credibility in new markets.

Ecosystem as a Structural Advantage in the Market

Meanwhile, Gede Sastrawan, General Manager of the VinFast Bali Dealership, said the integrated ecosystem represents VinFast’s core strategy.

“There are many good products on the market. However, long-term competitive advantage does not come from a single model alone. It comes from a structure that supports the entire customer lifecycle, from charging infrastructure and after-sales service to domestic manufacturing capability,” Gede said.

He explained that in the early stages of electric vehicle adoption, the main barrier for Indonesian consumers is not merely product performance but rather infrastructure reliability and ease of daily use.

Gede therefore emphasised that the installation and maintenance of charging stations to high operational standards is non-negotiable.

“Charging stations must operate reliably, be well-maintained, and be strategically distributed at key locations. Once the infrastructure becomes dependable, consumer sentiment will shift rapidly,” he said.

“This approach demonstrates that VinFast is not merely competing on product attributes but also on ecosystem-building capability — a structural advantage in a market undergoing fundamental transformation,” he added.

Local Manufacturing: VinFast’s Strategic Move for Indonesia

Gede described the presence of a VinFast CKD (Completely Knocked Down) plant in Indonesia as a crucial strategic step, as the factory is expected to improve cost efficiency and consolidate the brand’s position.

He noted that domestic production would optimise pricing through local labour and raw materials, whilst aligning with Indonesia’s localisation policies. This creates competitive advantages in taxation, pricing, and participation in government programmes.

From a long-term perspective, Gede characterised VinFast’s factory investment as a demonstration of the company’s seriousness, arguing that when a company builds a factory, it signals genuine belief in a country’s market.

This is particularly notable given that very few electric vehicle companies have invested in manufacturing in Indonesia at present.

With EV penetration increasing, domestic production capacity will play a key role in determining competitiveness in terms of both scale and pricing.

“Very few EV brands have invested in local manufacturing in Indonesia. When a company builds a factory, it signals confidence in the market and a long-term development strategy,” he said.

Electric Motorcycles as a Short- to Medium-Term Growth Catalyst

Although electric cars represent a long-term strategic pillar, Gede believes electric motorcycles could be the first breakthrough segment in Indonesia.

Indonesia is one of the world’s largest motorcycle markets. In Bali, as an international tourism hub, local authorities are actively promoting emission reduction initiatives, creating favourable conditions for two-wheeled vehicle electrification.

“Many hotels, resorts, and villas have already begun switching to electric motorcycles for internal operations. We are seeing strong interest from consumers and media,” Gede said.

Consumer preferences in Bali and major urban centres are trending towards larger, sportier, and more expressive designs. Gede is optimistic that VinFast can compete effectively in the Indonesian market by offering a range of products suited to local needs.

With an operational range of approximately 200 kilometres, Gede believes electric motorcycles can serve ride-hailing drivers and urban commuters — two user groups with high volume and frequency.

“As the Indonesian government accelerates transport electrification, electric motorcycles can serve as a marketing tool, strengthening brand recognition before the electric car segment reaches full maturity,” he said.

According to Gede, there are three essential pillars to consider: competitive pricing, extensive charging infrastructure, and convenient battery-swapping solutions. These elements will determine the user experience in the early stages, and VinFast is well-positioned to execute them effectively.

Gede also emphasised that after-sales capability and spare parts availability are crucial to providing consumer confidence.

“Warranty systems, readily available components, and professional service processes form the foundation of long-term trust,” he said.

Gede noted that VinFast’s implementation and improvement of its after-sales system in Indonesia within two years of its arrival demonstrates the brand’s high adaptability in new operational environments.

“Based on their first-hand experience in Vietnam and their assessment of Indonesia’s domestic market potential, Indonesian dealers view VinFast not merely as a newcomer but as a structural player capable of reshaping competitive dynamics,” he explained.

He expressed optimism that the integrated ecosystem, localisation strategy, multi-segment product portfolio, and comprehensive electrification roadmap create depth in development, rather than depending on a single product model cycle.

According to Gede, companies capable of operating at ecosystem scale will possess a sustainable advantage, particularly in Indonesia’s dynamic market where electrification is increasingly becoming a policy direction.

“If the rollout in Indonesia replicates the speed and operational discipline observed in Vietnam, dealers believe VinFast will not only participate in the competition but has the potential to emerge as a major force shaping the era of electric mobility in Southeast Asia,” he concluded.