First made-in Vietnam sedan and SUV breaks coverPOSTED BY Yamin Vong ON 13 June 2018
VINFAST SUV and sedan to be launched by third quarter next year
By Yamin Vong
Vietnam’s first car gets closer to reality with the signing of a MOU to set-up a joint venture between Vietnam’s VINGROUP and Thailand’s AAPICO group.
The target date for the first two models – a sedan and an SUV – is third quarter next year.
The THB 1.8 billion (USD 60 million) joint venture between a VINGROUP subsidiary and Thailand-based Aapico Hitech is to manufacture Body in White (BIW) in VINFAST Trading and Production LLC’s Supplier Park in Haiphong, Vietnam.
“With our partnership with Aapico Hitech in the first project to manufacture automotive parts and accessories in Vietnam, we believe that there will be more domestic and foreign companies joining Vietnam’s automotive supplier industry,” said Nguyen Viet Quang, Vice President & CEO of VINGROUP.
“This is an important step in creating a synchronous ecosystem for the Vietnamese automobile manufacturing industry”, he said at the signing ceremony on Monday.
VINGROUP is one of the largest and most dynamic business conglomerates in Vietnam with a market cap of over VND 327 trillion (over US$ 14 billion).
In 2 September 2017 when VINGROUP launched VINFAST Automotive Manufacturing Project to build a world-class Vietnamese car brand, VINGROUP would go on to record a revenue of approximate VND 90 trillion (US$ 3.9 billion) for that year.
“AAPICO is privileged that VINGROUP has entrusted us with this project, which will be a historic milestone for Vietnam when the first two vehicle models are launched in 2019.
“This project has provided a truly significant stepping stone for AAPICO to enter Vietnam, and we are confident that this is only the first step to greater things in the future for both our companies”, said Mr. Yeap Swee Chuan, President & CEO of AAPICO Hitech Plc.
AAPICO Hitech Plc is a leading auto parts manufacturer in Thailand with a market cap of THB 12 billion (or approx. US$400 million). It will be responsible for the overall management of the Vietnamese JV including total technology and know-how, plant design layout, and equipment sizing.
In addition, AAPICO will also produce and provide THB 2.5 billion (USD 85 million) worth of jigs and dies to the joint venture company to produce the BIW parts for the VINFAST vehicles.
This joint venture is the largest project ever undertaken by AAPICO Group in terms of scale and would also be the Group’s second largest overseas investment.
In June last year, it invested US$ 100 million for a 25.1 per cent of Detroit, Michigan-based, Sakthi Automotive Group’s global operations.
AAPICO presently has manufacturing operations globally including India, Europe, USA, Mexico, China and now Vietnam.