Hyundai inaugurates 100,000-car plant in Vietnam
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Hyundai Motor has inaugurated its second plant in Vietnam with a capacity of 100,000 automobiles per year.
Covering an area of over 50 hectares in the northern Ninh Binh Province, the new plant will turn out eco-friendly and fuel-saving vehicles, said Thanh Cong chairman Nguyen Anh Tuan.
Hyundai entered the Vietnamese market in 2009 through a joint venture with local conglomerate Thanh Cong Group. It imports parts for local assembly in what are known as knock-down kits.
The plant will increase Hyundai’s Vietnamese production capacity to 170,000 vehicles a year when it becomes fully operational, likely in 2025.
The South Korean automaker has invested nearly VND12.3 trillion (roughly $496 million) in Ninh Binh province.
In the first 10 months, 397,457 cars were sold and auto sales could exceed 400,000 for the first time in eight years, according to the Vietnam Automobile Manufacturers Association (VAMA).
Questions & Answers
Q.When is the new plant expected to be fully operational and what will its total output capacity be then?
When is the new plant expected to be fully operational and what will its total output capacity be then?
The new plant is likely to become fully operational in 2025. Once fully operational, Hyundai's total Vietnamese production capacity will increase to 170,000 vehicles per year.
Q.What is the primary focus for the types of vehicles produced at the new plant?
What is the primary focus for the types of vehicles produced at the new plant?
The new plant will focus on producing eco-friendly and fuel-saving vehicles. This strategic direction was highlighted by Thanh Cong chairman Nguyen Anh Tuan.
Q.How much has Hyundai invested in the Ninh Binh province for this new facility?
How much has Hyundai invested in the Ninh Binh province for this new facility?
Hyundai has invested nearly VND12.3 trillion in Ninh Binh province for this new facility. This figure is roughly equivalent to $496 million.
Q.How does Hyundai currently operate its production in Vietnam regarding vehicle components?
How does Hyundai currently operate its production in Vietnam regarding vehicle components?
Hyundai imports parts for local assembly in Vietnam. These components are supplied in what are known as knock-down kits, which are then put together at the production facilities.
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