Updated  
October, 23 2012 10:28:05

Mazda to build car engines in Viet Nam

HA NOI (VNS)— Japanese carmaker Mazda intended to develop an engine factory in Viet Nam with total investment capital of around US$600 million, the Dau tu (Vietnam Investment Review) reported.

The newspaper quoted a source as saying that the company had asked local authorities to recommend a suitable location for the plant. "The site may be in Ha Noi or one of its neighbouring provinces," the source said.

Vina-Mazda, a member of the Truong Hai Auto Co, opened a factory last October to assemble Mazda sedans in the Chu Lai Economic Zone in the central province of Quang Ngai.

This facility had an investment capital of VND750 billion ($35.7 million) and will be capable of assembling 20,000 units per year by 2016.

If the project materialised, it would help the development of an automobile industry that was yet to take shape in the country, the newspaper commented, noting that joint ventures here have only imported car components for assembly.

Truong Hai Auto communications officer Le Hoang Lan declined to provide any detailed information to the Viet Nam News.

The $185.5 million Chu Lai-Truong Hai engine manufacturing factory, the construction of which started in June, is the only engine production project in the country at present. It is expected to turn out 20,000 engines per year when it goes into operation.

Germany's Robert Bosch Co also has a factory which produces driving belts for car gear-boxes with investment capital of 100 million euros ($130 million), an amount expected to be raised to 230 million euros ($299 million) by 2015, but all of its products are exported to Japan.

Deputy Prime Minister Hoang Trung Hai said national strategies prioritised the development of mechanical products which could take part in global production networks and value chains as well as help foster domestic support industries. — VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

SEE ALSO

Hightlight

Tax code reforms to decipher dependents Tax code reforms to decipher dependents

People who are dependent on personal income tax payers will be given their own tax codes to avoid people lodging claims as dependents of more than one taxpayer.

Farmer-firm linkups remain elusive despite Gov't efforts Farmer-firm linkups remain elusive despite Gov't efforts

More than 10 years after the Government unveiled policies to encourage tie-ups between farmers and businesses, the proportion of farm produce sold through such contracts remains modest.

Buddha statues highlight heritage Buddha statues highlight heritage

An exhibition of Buddhist artefacts from the 11th to 20th century opened yesterday at the HCM City-based Xa Loi Pagoda.

Australian book to provide ‘limitless' inspiration Australian book to provide ‘limitless' inspiration

A book by Australian limbless victim Nick Vujicic was launched in Vietnamese yesterday.