Sep. 07, 1995

Toyota to Produce Cars in Vietnam

 

Tokyo―TOYOTA MOTOR CORPORATION announced today that, on September 6, the Vietnamese government approved its licensing application for a joint venture with VEAM Corporation and KUO (Asia) Pte Ltd to manufacture and sell Toyota vehicles in Vietnam.

A new firm, to be called Toyota Motor Vietnam Co., Ltd (TMV), will be established especially for the project. TMV is scheduled to start producing compact commercial vehicles and passenger cars in 1997. Plans call for the annual production of 10,000 vehicles at startup. Production will eventually increase to the 20,000 unit level at full-scale operation.

Project Outline

  1. Company
    Toyota Motor Vietnam Co., Ltd
  2. Location
    Phuc Thang Area, Me Linh District, Vinh Phu Province (about 25km northwest of Hanoi)
  3. Vehicle types
    Compact commercial vehicles and passenger cars
  4. Production
    10,000 units a year at startup, eventually rising to 20,000 units annually
  5. Startup
    Late 1997
  6. Capital
    US$49.14 million (about ¥4.4 billion)
  7. Equity share
    Toyota 70%; VEAM 20%; KUO 10%
  8. Investment
    A total of US$100 million (about ¥9 billion) at full-scale operation
  9. Employees
    About 1000 at full-scale operation

VEAM Outline

Official name
Vietnam Engine and Agricultural Machinery Corporation
Representative
Do Hoang Thinh
Business
Manufacturing of engines and agricultural equipment. VEAM subcontractors produce such items as gasoline and diesel engines, ship engines, tractors, rice refining machinery, bicycles, and replacement parts for motor vehicles. VEAM operates under the Ministry of Heavy Industry of Vietnam

KUO Outline

Official name
KUO (Asia) Pte Ltd
Representative
Peter Fu Chong Cheng
Business
KUO (Asia) Pte Ltd is part of the KUO Group, a trading company in Singapore. In Vietnam, the KUO Group's activities include crude-oil exports, petroleum imports, aircraft leasing, and ship scrapping.