South East Asian Automotive News

VIETNAM

Ford Vietnam Ltd denies rumors that it has suspended any of its operations in the country.  Ford Vietnam, a car assembly JV, has stated that it will scale its operations to match market conditions, but will not suspend operations at any of its production facilities.  Sales rose by 15% between March and June as Ford offered more products suited to Vietnamese road conditions.  The company hopes to sell 500 medium priced, high quality vehicles.  (July 21^st 1998)

Hyundai Motor Co has abandoned its plans to build a US$220m auto plant in Dong Nai province.  The plans were finalized in 1995 but, due to the weak market for cars in Vietnam, the company has backed out of the deal. The plant would have been Vietnam’s largest auto manufacturing facility with a production capacity of 10,000 units. (July 14^th 1998)

Nissan Motor Corp has suspended operations in its US$110m auto assembly venture in Vietnam due to a decrease in local demand.  Nissan and its Malaysian subsidiary, Nissan TCM Pte Ltd, hold a 9.4% stake in the venture.  Other investors include Tan Chong and Sons Motor of Malaysia and Danang Auto Mechanics Co. (July 29^th 1998)

Rhoden (Vietnam) Ltd has invested US$5m in a manufacturing plant in Bien Hoa 2 Industrial Park.  The factory will produce motorcycle tubes and tires.  For the first three years of production, Rhoden will export 30% of its total output, and 50% after that.  (August 1^st 1998)

Vietnam Motors Corp (VMC) has opened a BMW showroom and service facility in Hanoi.  The service facility, 5,000 square meters in size, has 12 service bays including paint and body shops. In 1997, the sale of 113 BMWs accounted for more than a 50% share of the Vietnam luxury car market, in which BMW has been the leader for the past three years. VMC and BMW have been partners in a local assembly plant since 1994.  (July 30^th 1998)