|Kumho Tires Limited Company in the southern province of Binh Duong.— Photo vatgia
HA NOI (VNS) — Kumho Tire, a subsidiary of Korea's Kumho Asiana Group, plans to invest around US$100 million in a factory in southern Binh Duong Province, Kumho Asiana Group chairman Park Sam-koo told the Korea Times on Sunday.
He disclosed the plan on the sidelines of a business conference in Ha Noi during a state visit by President Park Geun-hye.
This was the first time the group revealed details of a planned investment in Viet Nam. The investment is expected to increase the company's Vietnamese plant's annual production from 3.3 million to 5 million tires.
"We are mulling over enlarging the facilities of our Vietnamese factory beginning next year. The amount to be spent is in the neighbourhood of $100 million," Park said.
"We will strengthen our footing in Viet Nam, where our affiliates in construction, airlines and express buses have operations."
Park regards Viet Nam as a significant target market for Kumho and has been a strong proponent of cranking up the output of the country's Kumho Tire plant.
Experts said Park's decision made sense because boosting production in Viet Nam would help meet rising demand for quality tires in China, just across the northern border. — VNS