The Hanoitimes - Toyota Vietnam (TMV) always aims to contribute to the prospect of Vietnam auto market, especially domestic production, a company representative told Hanoitimes.
A plan to expand TMV plant in the northern province of Vinh Phuc was disclosed in a Government Office meeting with the province's authority last week. The Japanese automaker aims to lease a 9.1-hectare plot near its current factory spanning 21 hectares in Vinh Phuc, part of a scheme to assemble about 90,000 vehicles a year.
Foreign media also reported about the expansion plan, specifying that Toyota would invest another US$75 million to double the production capacity of the plant in Vinh Phuc.
There are two reasons behind this move, the firm’s representative told Hanoitimes in an email.
Firstly, with the additional surface, they can build a new testing road of 800 meters (a 400-meter long flat road included) in line with requirement of newly-implemented Decree 116, which tightens auto trade and manufacturing.
Secondly, the expansion will enable TMV to raise its production, as well as bolster the Vietnamese auto market in the future.
Several years ago, a number of Japanese automakers threatened to leave Vietnam. In April 2015, a leader of TMV mentioned the possibility of stopping car assembly in Vietnam and shifting to importing CBU cars for domestic sales.
Last year, Japan External Trade Organization's Chief Representative Takimoto Koji in a meeting, noted that that some Japanese automobile manufacturers were considering leaving Vietnam because of problems related to tax policies and the country's poor support industries.