Leaders of THACO and LS Mtron signed the cooperation document. (Source: VNA)

Quang Nam (VNA) – The Truong Hai Automobiles Joint Stock Company (THACO) will partner with the LS Mtron Corporation from the Republic of Korea to manufacture and distribute agricultural machines on the Vietnamese market.

Under the terms of a deal signed in the central province of Quang Nam on January 17, LS Mtron will transfer its technology to THACO to manufacture agricultural machines with the localisation rate of 50 percent and THACO trademark for exclusive distribution in Vietnam from October 2017.

In the second stage, the joint venture will expand production to export its agricultural machines to foreign markets.

The move is in line with THACO’s development strategy to turn itself into a multi-sector group, with a focus on mechanical engineering and automobile industries.

Ja Eun-koo, Vice President of LS Mtron Corporation, said the company began manufacturing agricultural machinery in 1977. Its tractors with LS trademark currently account for the largest share in the RoK and are being produced in China and Brazil.

LS Mtron has exported tractors to more than 40 countries and territories worldwide, including 12,000 machines to North America – the world’s largest agricultural machine market.

Speaking at the signing ceremony, Deputy Minister of Agriculture and Rural Development Hoang Van Thang said the THACO – LS Mtron cooperation will contribute to industrialisation and modernisation in agriculture, thus helping to improve the competitiveness of Vietnam’s agricultural products and living conditions of farmers.-VNA