New projects for automotive industry

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(QNO) - After VND 2,100 billion (US$94.5 million) project of bus production by Truong Hai Auto Corporation (THACO) started in September 2016, auto industry is receiving new projects.

THACO’ s auto manufacturing plant
THACO’ s auto manufacturing plant

THACO’s bus project is producing Euro 5 standard buses based on the technology transferred from South Korea’s Huyndai Group. The project expected capacity is 20,000 buses per year including 8,000 coaches and 12,000 mini buses. It is the second bus project that THACO has invested into Chu Lai Open Economic Zone. Earlier, a bus manufacturing factory with an annual capacity of 3,000 buses was put into operation in 2011. 

Beside the bus project, THACO is deploying some others in Chu Lai. One of the most noticeable projects is that of  Mazda car production and assembly for domestic consumers and for ASEAN export markets with a capacity of 50,000 cars/a year in the first phase. THACO also pays attention to training engineers and skillful workers for the new projects. At the same time, a car assembly project has been achieved by Huyndai Thanh Cong and Vietnam Huyndai.

At the beginning of this year, a governmental decision is on strategy for Vietnam’s auto industrial development including some preferences to large-scale projects. However, according to Chairman of THACO Tran Ba Duong, domestic auto industry faces difficulties with high import tax on auto spare parts and components and highly competitive markets. So, investment into auto industry is a long race without cease. THACO is planning to invest into agricultural machinery production to disperse risks as well as salvage the existing mechanical equipment of this corporation.