VinFast Signs Agreement to Develop Transportation Infrastructure in Indonesia

By Entrepreneur Staff

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VinFast

VinFast Indonesia has signed a strategic cooperation agreement with the Subang Regency Government and toll road operator PT Lintas Marga Sedaya (PT LMS) to develop a new interchange on the Cikampek–Palimanan (Cipali) Toll Road, the company said on Wednesday.

The project involves the construction of the Manyingsal Interchange at Km 115+500 on the Cipali Toll Road and forms part of VinFast's broader infrastructure and industrial development plans in Indonesia.

Under the agreement, VinFast Indonesia will act as the strategic investor and fully finance the project, covering costs related to planning, feasibility studies, permitting, construction, and associated expenditures. The company said the arrangement would help improve transportation infrastructure without adding pressure to the local government budget, while supporting faster project execution and improved logistics efficiency.

The Subang Regency Government will serve as the central coordinating authority, overseeing licensing and approvals, including permits for toll road usage, and coordinating technical documentation, detailed engineering design, environmental impact assessments, and project supervision through to operational approval.

PT LMS, as the operator of the Cipali Toll Road, will collaborate on technical cooperation within its mandate and agree on detailed operation and maintenance arrangements under separate agreements.

The project received in-principle approval from Indonesia's Ministry of Public Works on Dec 15, 2025. Construction is expected to be completed within a maximum of three years from the date of permit issuance. Upon completion and issuance of the Operational Feasibility Certificate, the interchange assets will be transferred to the Ministry of Public Works for management in accordance with state asset regulations.

VinFast's manufacturing facility in Subang became operational in 2025 after a 17-month construction period, highlighting the company's accelerated investment timeline in Indonesia.

Pham Sanh Chau, chief executive officer of VinFast Asia, said the company views infrastructure investment as a key component of its long-term strategy in the market.

The interchange project is expected to improve logistics efficiency, enhance Subang's economic competitiveness, and support regional economic growth. Local authorities said the development could also generate significant employment opportunities during construction and operation.

VinFast entered the Indonesian market in 2024 and has since launched multiple electric vehicle models, expanded its dealership and aftersales network, and partnered with V-Green to develop a nationwide charging infrastructure, alongside collaborations with local banks and financial institutions.

Entrepreneur Staff

Entrepreneur Staff

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