Skoda to build plant in Vietnam
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Czech automaker Skoda is set to build a plant in the northern province of Quang Ninh and expects to begin production and exports of vehicles by 2023. Leaders of the company have worked with representatives of the Ministry of Industry and Trade on the plan of building the factory.
Martin Jahn, a director of Skoda Auto, said the Vietnamese car market is relatively small but very promising.
“The political and trade ties between the two countries represent extensive opportunities for cooperation.”
There are 44 Czech projects in Vietnam with a total investment of $91 million, according to the Ministry of Planning and Investment. Mercedes-Benz and Peugeot are two European carmakers with plants in Vietnam, while BMW’s factory is expected to be completed this year.
Skoda manufactured around 900,000 cars last year and sold nearly half in Western Europe.
Established in 1925, it is a subsidiary of German auto giant Volkswagen.
Questions & Answers
Q.Which specific province in Vietnam will be the location for Skoda's new plant?
Which specific province in Vietnam will be the location for Skoda's new plant?
Skoda's new manufacturing plant will be built in the northern province of Quang Ninh. This location was confirmed after company leaders met with representatives from the Ministry of Industry and Trade.
Q.What is Skoda's primary reason for choosing Vietnam for its new plant?
What is Skoda's primary reason for choosing Vietnam for its new plant?
Skoda views the Vietnamese car market as promising despite its current size, and sees extensive opportunities for cooperation due to the political and trade ties between the Czech Republic and Vietnam.
Q.By when does Skoda anticipate starting vehicle production and exports from the new Vietnamese plant?
By when does Skoda anticipate starting vehicle production and exports from the new Vietnamese plant?
Skoda expects to commence both production and exports of vehicles from its new Vietnamese plant by the year 2023. This timeline is part of their planned operations for the facility.
Q.Are there other European car manufacturers currently operating plants in Vietnam, or planning to do so soon?
Are there other European car manufacturers currently operating plants in Vietnam, or planning to do so soon?
Yes, Mercedes-Benz and Peugeot are two European carmakers that already have plants in Vietnam. Additionally, BMW's factory in the country is projected to be completed sometime this year.
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