A new factory has been opened in northern Vietnam by a joint venture between South Korean’s Hyundai Motor and the Vietnamese conglomerate Thanh Cong Group as it seeks to increase output and maintain its dominant position in the market.
The plant, located in the province of Ninh Binh, is capable of producing 100,000 units annually. The joint venture’s output capacity is anticipated to increase to 180,000 by 2025 when combined with existing facilities. Along with producing automobiles for the domestic market, the new plant will also produce cars for export to other nations in the region. The 50-hectare plant, which includes a test track, has received USD 129 million in investments from the joint venture.
Huyndai entered the Vietnamese market as a joint venture with Thanh Cong Group in 2009. It sells around 7,000 vehicles domestically, surpassing Toyota, and is considered to be the top seller in the country.
The Vietnam Automobile Manufacturers’ Association (VAMA) estimates that domestic sales of new cars increased by 2.5% to 304,000 units in 2021. Total auto sales in Vietnam are estimated to be over 400,000 units, including Huyndai. The domestic vehicle market is anticipated to rise in the future as a result of a healthy economy creating a growing middle class.
(Source: Nikkei Asia)