How Investors May Respond To VinFast Auto (VFS) Expanding EV Manufacturing With A New Indonesia Plant

• VinFast Auto has opened its first Southeast Asian factory outside Vietnam in Subang, Indonesia, now producing VF 5, VF e34, and VF 6 models with initial annual capacity of 50,000 cars and plans to lift total investment in the country to as much as US$1 billion.
• By bringing full EV manufacturing, long-warranty family SUVs like the VF 8, and ecosystem partnerships into Indonesia, VinFast is seeking to embed itself early in one of the region’s fastest-growing auto markets.
• We’ll now examine how VinFast’s rapid Indonesia plant ramp-up and expanded US$1 billion investment commitment affect its existing investment narrative.

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VinFast Auto Investment Narrative Recap

To own VinFast, you essentially have to believe it can turn rapid EV footprint expansion in high-growth ASEAN markets into scale, better unit economics, and eventually narrower losses, despite a history of heavy cash burn and persistent negative margins. The Indonesia plant’s quick ramp and up to US$1 billion commitment reinforce the near term growth catalyst of Southeast Asia expansion, but do little to ease the immediate liquidity and dilution risks tied to ongoing high cash burn.

Among recent developments, the new next generation vehicle platform targeted for 2026 looks most connected to this Indonesian build out, because it underpins the push for lower production costs and more competitive models that could support scale benefits from the new factory. When set alongside Indonesia’s projected capacity increase from 50,000 to 350,000 units per year, this platform plan sits right at the intersection of VinFast’s volume driven catalysts and its execution and capital intensity risks.

Yet even as the Indonesian factory ramps up, investors should be aware that...

Read the full narrative on VinFast Auto (it's free!)

VinFast Auto's narrative projects ₫177,527.7 billion revenue and ₫8,991.9 billion earnings by 2028. This requires 48.9% yearly revenue growth and an earnings increase of about ₫89,207.8 billion from ₫-80,215.9 billion today.

Uncover how VinFast Auto's forecasts yield a $6.36 fair value, a 85% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community valuations span from US$6.36 to US$88 per share, underscoring how far apart individual expectations can be. Against this spread, the core tension between VinFast’s rapid Southeast Asian expansion and its high cash burn and dilution risk gives you strong reasons to compare several viewpoints before forming your own view.

Explore 3 other fair value estimates on VinFast Auto - why the stock might be worth just $6.36!

Build Your Own VinFast Auto Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your VinFast Auto research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free VinFast Auto research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate VinFast Auto's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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