PM launches construction for Vingroup’s automobile manufacturing complex

PM Nguyen Xuan Phuc joins delegates at the launching for construction of VINFAST automobile manufacturing complex in Hai Phong on September 2 - Credit: Vingroup

Speaking at the ceremony, PM Phuc said that this is one of many significant events to celebrate on the 72nd anniversary of National Day. He said that in the trend of international integration, as the average income increases, the demand for cars will be widespread. He also emphasised that the Party and State has insisted on building policies for an independent economy in a world of rapid changes, so the building of national product brand is very important.

With that spirit, the PM praised Hai Phong and Vingroup in co-organising the ground breaking ceremony of a national automobile brand and highly valued the project’s use of modern, environmentally friendly technologies as a result from the Industrial Revolution 4.0.

Vingroup has partnered with major manufacturers to choose the finest automotive manufacturing technologies. Aiding the automobile production are hundreds of auxiliary factories which can create jobs for 20,000 workers and in the near future will contribute to the city budget equal to the current total domestic revenue. By 2025, VINFAST would contribute VND20 trillion to the city budget, equal to the entire domestic revenue of Hai Phong in the current year.

The PM praised the progress that investors have made, as of September 2018, the complex will put its first electric motorcycle into operation and by 2019-2020 the first car under the VINFAST brand will be introduced to the market. This progress is considered a miracle, the government leader stressed.

PM Nguyen Xuan Phuc stresses the importance of building a Vietnamese automobile brand - Credit: Vingroup

Located at Dinh Vu - Cat Hai Economic Zone, VINFAST owns European and American standard technologies and gathers leading experts to open a new direction for Vietnam's automobile industry. It is also Vingroup's seventh core business.

VINFAST targets to become the leading automobile manufacturer in Southeast Asia with a designed capacity of up to 500,000 vehicles per year by 2025, with the main products being automobiles using internal combustion engines, electric cars and environment friendly electric motorbikes.

In support of its new strategy, VINFAST has signed a Memorandum of Understanding with Credit Suisse AG, one of the world's leading financial groups, under which Credit Suisse will arrange a loan of up to US$800 million for VINFAST.

In its first stage, the factory will roll out 5-seater sedans, 7-seater SUVs and electric motorcycles of European quality standards, with a capacity of 100,000-200,000 units per year.

VINFAST covers an area of 335 ha, including five main workshops. Its products’ key components such as motors and main structural systems will be purchased by leading European and American designers. The designs are created by famous Italian studios that have created luxury designs for Alfa Romeo, Aston Martin, Audi, Bentley, BMW, Cadillac, Ferrari, Jaguar, Lamborghini, Mercedes-Benz, Porsche and Rolls-Royce.

VINFAST commits to utilise the world's most modern technologies in its production, ensuring strict Euro 5 and Euro 6.0 emission standards, while maximising the use of green energy. It has invested in handling used batteries to protect the environment.

VINFAST also aims to support and cooperate with Vietnamese manufacturers to jointly produce and develop components to achieve a localisation rate of 60%, master technologies and export to other countries in the region.

Vingroup Vice President Nguyen Viet Quang said that the launch of VINFAST demonstrates the aspirations of building a Vietnamese brand with world class, confirming the ability of Vietnamese people to master modern technologies. Through the field of automobile manufacturing - one of the leading industries that affect many others, Vingroup is also eager to contribute to promoting the development of heavy industry and manufacturing in Vietnam, contributing to national industrialisation and modernisation.