06:18 (GMT +7) - Tuesday 21/11/2017

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Vingroup launches automobile manufacturing complex

Released at: 15:09, 08/09/2017

Vingroup launches automobile manufacturing complex

Photo: Vingroup

Vinfast complex to produce motorbikes from 2018 and motor vehicles from 2019.

by Ngoc Lan

Vingroup has held a breaking-ground ceremony for Vinfast, its automobile manufacturing complex in the northern port city of Hai Phong with total investment capital of VND35 trillion ($1.5 billion).

Located at the Dinh Vu-Cat Hai Economic Zone, Vinfast covers an area of 335 ha. The complex has European and US-standard technologies and gathers together leading experts to open up a new direction for Vietnam’s automobile industry. It is also Vingroup’s seventh business line.

Vingroup expects to debut “Made in Vietnam” motorbikes in September 2018 and then Vinfast automobiles, including electric and gasoline models, in 2019.

In the first phase, the plant will manufacture five-seat sedans and seven-seat SUV models and electric motorbikes that meet EU quality standards. Capacity in the first phase will be between 100,000 and 200,000 units.

Vinfast targets becoming the leading automobile manufacturer in Southeast Asia with a designed capacity of up to 500,000 vehicles per year by 2025, with main products being automobiles with engines, electric cars, and electric motorbikes.

The complex includes five main workshops. Key components such as engines and chassis will be purchased from leading European and US designers.

Designs will be created by famous Italian studios that have created luxury designs for Alfa Romeo, Aston Martin, Audi, Bentley, BMW, Cadillac, Ferrari, Jaguar, Lamborghini, Mercedes-Benz, Porsche, and Rolls-Royce.

Vinfast commits to utilizing the world’s most modern technologies in its production, ensuring strict Euro 5 and Euro 6.0 emission standards are met while maximizing the use of green energy. It has invested in recycled batteries, to protect the environment.

It also aims to support and cooperate with Vietnamese manufacturers to jointly produce and develop components to achieve a localization rate of 60 per cent and export to other countries in the region.

In support of its new strategy, Vinfast has signed a memorandum of understanding (MoU) with Credit Suisse AG, one of the world’s leading financial groups, under which the latter will arrange a loan of up to $800 million.

Prime Minister Phuc told the ceremony that the automobile industry plays a very important role in Vietnam’s economy. “Vinfast is the start of a national car brand for Vietnam,” he said.

Mr. Nguyen Viet Quang, Deputy Chairman of VinGroup, said that Vinfast’s debut is testament to the group’s ambition to manufacture “Made in Vietnam” vehicles that compare favorably with well-known vehicles from around the world. “It also affirms Vietnamese people’s ability to master modern technology,” he added.

According to research by the Ministry of Industry and Trade, every country with a population of more than 50 million people has its own automobile brand.

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