PEGA's electric vehicle production chain (Photo: autotv.vn)

Hanoi (VNA) – The establishment of an electric vehicle production complex in the Hanoi Southern Supporting Industrial Park (HANSSIP) will give a breath of fresh air to Vietnam’s electric vehicle industry.

The N&G Investment & Development JSC and the MBI JSC from the Republic of Korea inked a Memorandum of Understanding to develop an electric vehicle production factory at HASSIP during a recent investment promotion conference in Hanoi.

Boasting strengths in research, transmission system manufacturing and state-of-the-art technology, the project will create a turning point for the electric vehicle production industry in Vietnam.

Le Hoang Long, CEO of PEGA Electric Vehicle JSC, which is targeting a 70 percent local content in 2018, said battery and transmission engine are the most difficult phases to complete production chain in Vietnam.

A foreign company’s investment in the sector is an upbeat sign, offering a wide range of choices for the company to improve production chain, Long stressed.

Vice Chairman of the European Chamber of Commerce (EuroCham) in Vietnam Tomaso Andreatta said developing electric vehicle production is a judicious move, paving way for Vietnam to become a leading country in terms of green energy.

The production facility will be built in an area of 33,600 square metres with total investment of 1 billion USD, MBI Chairman Moon Soon Yoo said, adding that 100,000 USD of the sum will be disbursed at the first phase of the project.

He stated that as electric vehicle production is rather new in Vietnam, the Government and Hanoi authorities should map out policies to encourage people use electric bikes and cars to reduce alarming air pollution in the city besides simplifying administrative procedures.

Vietnam is a fertile land for two-wheel vehicle production with hundreds of spare part manufacturing plants meeting international standards. According to the Vietnam Association of Motorcycle Manufacturers, the country produces 2.8-3.3 million motorbikes every year.-VNA