According to the Japanese automotive giant, it plans to invest US$250 million in building the second automobile manufacturing factory in Vietnam in an aim to tap into the strong demand in the market as well as expand its presence in the region.
The new plant will have a designed capacity of 30,000 to 50,000 vehicles a year
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The project aims at contributing to the local socio-economic growth and forming more partnerships in eco-car production in the future.
Mitsubishi Vietnam’s first plant in the southern province of Binh Duong has an annual capacity of 5,000 automobiles.
At the reception, Hue also 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 industrialization strategy within the framework of the Vietnam – Japan cooperation toward 2020, he said.
Investing in Vietnam, the group will capitalize 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.
Hue said that Vietnam will create favorable conditions for Mitsubishi Motors to carry out its projects in the country.
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 labors.
On the same day, Mitsubishi Motors also signed a memorandum of understanding (MoU) with the Vietnamese Government, under which they will explore how to best promote the use of electric vehicles (EVs) in the country.
Mitsubishi Motors will work with the Vietnam Industry Agency at the Ministry of Industry and Trade to conduct a joint study of efficient EV usage and the public policy programs and incentives that could support the accelerated adoption of sustainable automotive technology.
One Outlander PHEV, Mitsubishi Motors’ market-leading plug-in hybrid EV, and one quick battery charger have been delivered to the agency as part of the agreement.
