Ho Chi Minh City-based Truong Hai Auto Co. Wednesday in Hanoi signed a contract to become the official manufacturer and distributor of passenger cars for the Republic of Korea’s KIA motors in Vietnam.
Under the deal, Truong Hai is to initially import complete-knock-down (CKD) cars from KIA Motors factory in the RoK for sale in Vietnam with technology, training, technical and marketing support from the Korean partner.
The company is to import seven types of KIA-brand cars of five to seven seats, including the Picanto, Rio and Optima with prices ranging from $17,000 to nearly $40,000, its general director, Tran Ba Duong said.
Duong said the forecast boom in the domestic car market lead to the inking of the car deal with KIA Motors, part of Truong Hai’s expansion plans to meet market demand.
This year, Truong Hai has plans to assemble cars at its factory at the Chu Lai Economic Zone in central Quang Nam province.
In 2001, the company built a $7-million factory to assemble KIA buses and trucks in HCMC’s neighboring Dong Nai province, with an annual capacity of 5,000 units.
In late 2003, Truong Hai opened an automobile manufacturing and assembly complex worth $40 million in the Chu Lai EZ, designed to turn out 25,000 products a year.
The company has so far sold 20,000 KIA units nationwide.
Truong Hai, which owns more than 50 auto showrooms and repair shops in Vietnam, also manufactures and assembles Chinese Foton light and heavy trucks.