Deputy Prime Minister Vuong Dinh Hue (R) and Mitsubishi Motors Executive Vice President Kozo Shiraji (Source: VPG)

Hanoi, January 15 (VNA) – Vietnam welcomes Mitsubishi Motors’ plan to build its second plant in the country, said Deputy Prime Minister Vuong Dinh Hue while receiving the group’s Executive Vice President Kozo Shiraji in Hanoi on January 15.

At the reception, Hue highlighted cooperation in auto and support industries as a priority in Vietnam – Japan ties. Mitsubishi Motors’ expansion in Vietnam will contribute to the country’s industrialisation strategy within the framework of the Vietnam – Japan cooperation toward 2020, he said.

Investing in Vietnam, the group will capitalise on local workforce and enjoy tariff incentives, Hue added, saying that if Vietnam raises its rate of locally made products to 40 percent, its exports to other ASEAN member states will enjoy zero tariff.

Vietnam will create favorable conditions for Mitsubishi Motors to carry out its projects in the country, the official said.

Thanking assistance from the Vietnamese Government and the Ministry of Industry and Trade, Kozo Shiraji said Vietnam is one of key production hubs of his company in Southeast Asia with a source of young and skilled labours.

He said Mitsubishi Motors is looking for a location to set up its second factory in the country. The plant costs approximately 250 million USD, with a manufacturing capacity estimated to reach 30,000 – 50,000 cars on an annual basis.

To ensure the factory’s operation in 2020, developed industrial parks or economic zones near sea ports are more likely to be selected, Kozo Shiraji said.

The project aims at contributing to the local socio-economic growth and forming more partnerships in eco-car production in the future.-VNA