16:28 | 22/09/2016 Economy
Truong Hai Auto Corporation (Thaco) plans to inject more than 2.1 trillion VND (94.5 million USD) into a project to produce buses with European emission standards for both domestic use and export to other markets in ASEAN.
Thaco uses RoK's technologies to produce buses with Euro 5 emission standards targeting export markets in ASEAN - Photo: baodautu
The project, to be carried out with cooperation from the Republic of Korea (RoK)’s Hyundai Group, will have a design capacity of about 20,000 buses annually, including 12,000 mini buses and 8,000 coaches.
Also under the project, Thaco has been licensed by Hyundai to produce components and spare parts for H350 mini-buses at its factories in Chu Lai Open Economic Zone, the central province of Quang Nam.
Currently, Hyundai’s H350 minibuses are only produced in Turkey from mid-2015 for export to the European market.
According to the provincial People’s Committee, the project will help the auto industry and other support industries develop under the automobile sector’s development planning and strategy until 2025 with a vision towards 2030.
Thaco has been engaged in research and production of passenger vehicles since 2006 after putting into operation a bus assembling and manufacturing line at its Chu Lai – Truong Hai factory.
To meet increasing demand, Thaco launched a 600 billion VND (27 million USD) Thaco Bus factory in June 2011 at Chu Lai–Truong Hai automotive mechanical industrial park.
Covering an area of 15 hectares, the factory was capable of producing 3,000 buses a year in the first phase.
The corporation’s Research and Development Centre at the Chu Lai – Truong Hai complex was also successful in designing and producing bus models branded “Viet-THACO” with 40-46 percent of components locally produced.
Thaco bus sales reached 1,908 units in 2015, which increased to 2,033 units in the first eight months of 2016.
Thaco’s goal in cooperating with Hyundai is to expand its operation to other countries, a company official unveiled./.