(Bloomberg) — VinFast Auto Ltd. plans to invest as much as $1.2 billion in Indonesia “in the long-term” as it looks to expand in Southeast Asia after entering the US auto market.
The investment will include $150 million to $200 million for an Indonesian production facility to begin operating in 2026 with a manufacturing capacity of 30,000 to 50,000 cars per year, the Vietnamese EV maker said in a F-1 filing with the US Securities and Exchange Commission.
VinFast plans deliveries of its VF e34 and VF 5 models in Indonesia next year, according to the filing.
The company, which went public in the US via a special-purpose acquisition company merger in August with blank-check company Black Spade Acquisition Co., identifies Indonesia as a “key potential market” for EV and battery manufacturing facilities because of low costs and availability of domestic raw materials, it said in the filing.
Read: Vietnamese EV Maker VinFast Surges in Nasdaq Trading Debut (3)
VinFast shareholders Vietnam Investment Group (VIG) and Asian Start Trading & Investment Ltd. are planning to reduce their stakes in the co., according to the filing, which didn’t provide further details.
VIG held 33.5% of the company and Asian Star Trading & Investment Ltd. had a 15% stake, according to a separate filing in March. Each of these shareholders is majority owned by Vuong.
VinFast, which began building a factory in North Carolina in July, forecasts sales will reach 45,000 to 50,000 this year. Founder Pham Nhat Vuong, Vietnam’s wealthiest citizen, has said the company will break even by the end of 2024. In May, VinFast recalled all its electric sport utility vehicles in the US over a software malfunction. The company also cut some of its US workforce amid modest sales.
As of June 30, VinFast had sold a cumulative 18,700 electric vehicles, mostly in Vietnam, according to the filing. It sold 7,100 vehicles to GSM Green and Smart Mobility Joint Stock Co., a Vietnamese taxi company in which Vuong holds a 95% stake.
(Updates the story with reducing stakes in the fifth paragraph.)
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
