Despite the stagnant local auto market, Vietnam Suzuki Corp., asubsidiary of the Japan Suzuki Motor Corporation Japan , brokeground for an automobile factory in southern Dong Nai province on April25.
The new factory, which will be built next to theexisting Suzuki motorbike factory in Long Binh Industrial Parkin Dong Nai's Bien Hoa city, will make 5,000 auto units per year when itbecomes operational in 2013, according to Osamu Suzuki, president andCEO of the Japan Suzuki Motor Corporation.
Suzuki willinvest 13 million USD in the new factory, which will raise its output to10,000 units and 20,000 units per year in the following years.
The new project brings Suzuki's investments in Vietnam Suzuki Corp to 57.9 million USD.
With an aim to localise its production lines at the factory by 50percent, Suzuki Vietnam may export auto components to other Suzukiautomobile plants in Asia, including those in Thailand , Indonesia ,India and Pakistan . Those countries will also export components toVietnam , said Osamu.
Le Duong Quang, Deputy Ministerof Industry and Trade, said investments from Japan and Suzuki inVietnam indicate Suzuki's and Japanese investors' confidence inVietnam 's investment environment.
Quang said theVietnamese government has decided that auto manufacturing will be one ofthe major industries to be developed in the country.
Vietnam Suzuki Corp began to manufacture motorbikes at Binh Da factory in Dong Nai in 1996.
The company, which employs 600 people, opened its factory in LongBinh Industrial Park in 2006, making 80,000 motorbikes per year. -VNA
The new factory, which will be built next to theexisting Suzuki motorbike factory in Long Binh Industrial Parkin Dong Nai's Bien Hoa city, will make 5,000 auto units per year when itbecomes operational in 2013, according to Osamu Suzuki, president andCEO of the Japan Suzuki Motor Corporation.
Suzuki willinvest 13 million USD in the new factory, which will raise its output to10,000 units and 20,000 units per year in the following years.
The new project brings Suzuki's investments in Vietnam Suzuki Corp to 57.9 million USD.
With an aim to localise its production lines at the factory by 50percent, Suzuki Vietnam may export auto components to other Suzukiautomobile plants in Asia, including those in Thailand , Indonesia ,India and Pakistan . Those countries will also export components toVietnam , said Osamu.
Le Duong Quang, Deputy Ministerof Industry and Trade, said investments from Japan and Suzuki inVietnam indicate Suzuki's and Japanese investors' confidence inVietnam 's investment environment.
Quang said theVietnamese government has decided that auto manufacturing will be one ofthe major industries to be developed in the country.
Vietnam Suzuki Corp began to manufacture motorbikes at Binh Da factory in Dong Nai in 1996.
The company, which employs 600 people, opened its factory in LongBinh Industrial Park in 2006, making 80,000 motorbikes per year. -VNA
