Business

Kim Long Motor Hue multiplies investment sixfold

The company’s decision to inject an additional 21 trillion VND (804 million USD) into the project not only reflects its ambition to scale up operations but also signals a strategic shift towards exports and integration into global supply chains.

Kim Long Motor's passenger bus assembly line. (Photo of Kim Long Motor)
Kim Long Motor's passenger bus assembly line. (Photo of Kim Long Motor)

Hanoi (VNS/VNA) - While many areas face challenges in drawing major investment, Hue city is seeing progress with the Kim Long Motor automotive complex, a key industrial project expected to contribute to local economic growth.

The company’s decision to inject an additional 21 trillion VND (804 million USD) into the project not only reflects its ambition to scale up operations but also signals a strategic shift towards exports and integration into global supply chains.

According to the municipal People’s Committee, the Kim Long Motor Hue complex, developed by Kim Long Motor Hue JSC in the Chan May–Lang Co economic zone, has had its total investment adjusted from 4.4 trillion VND to 25.6 trillion VND.

This sixfold increase is earmarked for phase two of the project, following the near completion of phase one, which saw the construction and commissioning of various facilities for automobile assembly, parts manufacturing, engine production and powertrain systems.

Local authorities view the project as a key driver in achieving the province’s target of 10% economic growth by 2025.

From the corporate side, the expansion goes hand in hand with internationalisation strategies, backed by a series of overseas partnerships signed in recent months.

In late 2024, Kim Long Motor signed a tech transfer deal with Dongfeng Dana to produce 80,000 axles annually for both petrol and electric vehicles. In early 2025, it partnered with Changan to build a 50,000-unit car plant in Hue, aiming for 40% localisation at launch and over 80% by mid-2026.

Kim Long Motor has expanded into the Republic of Korea via a deal with DAON Mobility to supply 200 buses annually, and into Thailand with CHO THAVEE Group for 3,000 electric and Yuchai-engine buses per year, all made in Hue.

The company is also moving into social housing, proposing a 578 billion VND project in Chan May with 898 apartments, including 780 units for low-income residents./.

VNA
#Chan May–Lang Co economic zone #Kim Long Motor #automotive complex #global supply chains #electric vehicles
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