Skoda to build plant in Vietnam
In this article (5)
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 other European car manufacturers currently operate plants in Vietnam?
Which other European car manufacturers currently operate plants in Vietnam?
Mercedes-Benz and Peugeot are the two European carmakers that currently have plants established in Vietnam. BMW's factory is also anticipated to be completed within the current year.
Q.What is Skoda's rationale for entering the Vietnamese car market, given its size?
What is Skoda's rationale for entering the Vietnamese car market, given its size?
Skoda acknowledges the Vietnamese car market is relatively small but believes it holds significant promise. A director cited the strong political and trade ties between the Czech Republic and Vietnam as offering extensive opportunities for cooperation.
Q.When does Skoda anticipate beginning production and exports from its new Vietnamese plant?
When does Skoda anticipate beginning production and exports from its new Vietnamese plant?
Skoda expects to commence both the production and export of vehicles from its new plant in the northern province of Quang Ninh by the year 2023. Company leaders have already discussed the plan with the Ministry of Industry and Trade.
Q.How many cars did Skoda produce last year, and where were most of these sales concentrated?
How many cars did Skoda produce last year, and where were most of these sales concentrated?
Skoda manufactured approximately 900,000 cars last year. Nearly half of these vehicles were sold within the Western European market, indicating a significant regional focus for their sales.