15:46 | 09/10/2017 Society
Thanh Cong Group has officially signed a new joint venture with the Republic of Korea’s Hyundai Group to manufacture and distribute commercial vehicles in Vietnam.
|Representatives of Hyundai Group and Thanh Cong Group at the opening ceremony of Hyundai-Thanh Cong Commercial Vehicle joint venture - Photo: VNA|
With the launch of the joint venture, which is named Hyundai Thanh Cong Commercial Vehicle (HTCV), Thanh Cong Group has become the only company in Vietnam to manufacture, assemble and distribute all models of Hyundai cars.
Ik Tae Kim, CEO of HTCV, said with this co-operation, Hyundai and Thanh Cong were working together to create a unified brand name" Hyundai" in Vietnam.
According to Kim, setting up the new joint venture in the field of commercial vehicles is part of Hyundai Motor’s expansion strategy in the global market. The Southeast Asia region has always been considered an important market for future growth as other regional markets show signs of saturation.
Before the new deal, the production and distribution of commercial vehicles under the Hyundai brand were carried out by different units, creating variance in the market. The HTCV joint venture was founded to create uniform quality for customers in Vietnam.
Chairman of the Thanh Cong Group Nguyen Anh Tuan, who is also Chairman of HTCV joint venture, said that the Hyundai commercial vehicle manufacturing and assembling plant would be located in a large-scale automobile manufacturing complex in the northern province of Ninh Binh.
The first phase of manufacturing in the plant will be carried out in an area of 25 hectares, with an estimated production capacity of about 12,000 passenger cars and buses and about 30,000 trucks per year.
“With available potential, experience, investment and technology transfer of the Hyundai Group, our products will not only ensure the design and global quality but also competitive price,” said Tuan.
The Hyundai Group will transfer its most modern machinery and equipment to HTCV to help it meet the demand of the global exports.
The Thanh Cong Group now has three joint ventures with the Hyundai Group, including joint ventures in the fields of elevators and passenger cars as well as commercial vehicles.