Indonesia, 12th December – The construction of charging stations is a crucial factor in driving the green transition in Indonesia, as it facilitates the shift towards electric vehicles for consumers. Recently, two companies announced an MoU to develop 100,000 charging stations in Indonesia. One of them is V-GREEN, part of a green ecosystem aimed at bringing smart and modern electric vehicles from VinFast to a wide range of people.
According to GreenC, Indonesia’s electric vehicle market has witnessed remarkable growth in recent years. While sales were modest in 2020, surging to over 10,000 units in 2022, the adoption rate still lags behind global trends, accounting for only 0.5% of total vehicle sales in the first half of 2022. However, this market shows immense potential, driven by increasing consumer awareness and supportive government policies. As projections indicate, the EV market is poised for further expansion.
A significant hurdle to widespread EV adoption in Indonesia is the underdeveloped charging infrastructure. According to GreenC, with around 1,500 public charging stations, primarily concentrated in urban areas, the country faces a shortage of charging points, especially in rural regions. GreenC emphasizes that addressing this infrastructure gap is crucial to unlocking the full potential of the EV market and ensuring a seamless EV experience for Indonesian consumers.
A robust charging infrastructure is essential for electric vehicle companies to successfully penetrate the Indonesian market. To this end, V-GREEN and Prime Group (UAE) have recently signed a Memorandum of Understanding (MoU) to collaborate on the development of VinFast’s electric vehicle charging stations across Indonesia.
According to the agreement, the two parties will collaborate on research and development initiatives, aiming to establish approximately 100,000 VinFast electric vehicle charging stations across Indonesia within the next three years. The total estimated investment for this project is up to $1.2 billion.
In the initial phase, V-GREEN will prioritize the development of a charging network in key Indonesian cities, including Jakarta, Surabaya, Bali, and nearby areas. This strategic approach aligns with V-GREEN’s expansion plans in the Indonesian market, especially considering the high potential for electric vehicle adoption in these regions and VinFast’s diverse range of urban electric vehicles. Construction of the charging stations will commence in January 2025, with the goal of having a number of stations operational later that year.
Leveraging its extensive network of operations across the Middle East and Africa, Prime Group will utilize its robust financial resources and global network of partners to provide the necessary capital for the construction and development of VinFast’s electric vehicle charging stations.
Simultaneously, V-GREEN will undertake comprehensive market research to identify optimal locations for a robust charging network. This will ensure that the network can effectively address the current and future needs of electric vehicle users in Indonesia.
Understanding V-GREEN: Its Mission and Capabilities
Vingroup Chairman and VinFast founder Pham Nhat Vuong has established V-GREEN to strategically support VinFast’s global ambitions. By investing in a world-class charging infrastructure, V-GREEN aims to make Vietnam a global leader in electric vehicle charging and accelerate VinFast’s international expansion.
V-GREEN will operate independently to develop and manage the global charging network. This strategic partnership will allow VinFast to focus on core competencies like vehicle design, manufacturing, and sales, while V-GREEN handles the complex task of building and operating the charging infrastructure.
V-GREEN’s focus on green initiatives aligns with global sustainability trends and provides a strategic advantage. By accessing green financing, V-GREEN can significantly contribute to VinFast’s global expansion and strengthen its position as a leader in electric mobility.
To rapidly expand its global footprint, V-GREEN will prioritize key markets and partner with both local businesses and established charging providers. This strategic approach will ensure a seamless charging experience for VinFast electric vehicle owners worldwide.
V-GREEN’s predecessor, VinFast’s charging station development department, has rapidly expanded Vietnam’s charging infrastructure. With a planned 150,000 charging ports across 63 provinces and cities, Vietnam far surpasses regional counterparts like Thailand (8,700 ports) and Singapore (3,600 ports, aiming for 40,000 by 2030).
When considering the population ratio, Vietnam’s charging infrastructure is significantly more developed than the US. With an average of 15 electric vehicle charging ports per 10,000 people, Vietnam surpasses the US’s rate of 3 ports per 10,000 people by a factor of five.
As of the end of 2023, VinFast’s charging network had expanded to cover 63 provinces and cities in Vietnam, including 125 national and provincial highways. This represents a substantial 75% increase compared to the previous year, significantly outpacing the growth rates observed in countries like the US and Korea.
With the establishment of V-GREEN to spearhead infrastructure development, VinFast anticipates an even more rapid expansion of its charging network.
Prime Group: A Closer Look at Their Innovative Vision
Prime Group is a highly diversified business conglomerate with an extensive network spanning the Middle East and Africa region.
Established in 1995, the group operates across a broad spectrum of industries and has built a reputation for excellence and innovation.
Prime Group is committed to fostering international partnerships with leading global entities seeking to establish a presence in the MENA region across its core sectors. The group also actively pursues collaborations in emerging and thriving markets worldwide, striving for win-win solutions that prioritize sustainability, business continuity, and due diligence.
Guided by a forward-thinking vision, Prime Group ensures that every partnership aligns with its values of long-term growth, mutual benefit, and responsible business practices.
Mr. Tamer Wagih Salem, Chairman of Prime Group, shared his enthusiasm about the cooperation with V-GREEN, stating that by leveraging their expertise across various industries, they are proud to partner with V-GREEN to capitalize on the immense potential of Indonesia’s green transportation sector. He highlighted Indonesia as one of Southeast Asia’s most promising markets.
Mr. Salem expressed confidence that this collaboration, fueled by V-GREEN’s strong reputation and execution capabilities, will not only benefit both companies but also significantly contribute to the growth of Southeast Asia’s electric vehicle market.
He further stated that this partnership with V-GREEN will open doors to explore more opportunities globally, starting with Indonesia and then expanding to the Middle East, Europe, the United Kingdom, and the United States. Together, they aim to create exceptional value for society and the global community.
Prime Group’s strategic partnership with V-GREEN underscores its confidence in VinFast’s transformative “For a Green Future” strategy. This groundbreaking green ecosystem, encompassing urban electric vehicles, robust charging networks, and GSM’s all-electric ride-hailing services, is poised to revolutionize sustainable mobility and set a new industry standard
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