Skoda to complete Vietnam automobile plant in Q1
Skoda to complete Vietnam automobile plant in Q1
Czech carmaker Skoda is on track to complete a $500 million automobile plant in Vietnam in the first quarter of 2025.
Photo: Quang Ninh Portal |
The information was shared at a meeting between Prime Minister Pham Minh Chinh and Klaus Zellmer, CEO of Skoda Group, in Prague on January 19.
This is Skoda's first automobile plant in Southeast Asia. The project is being implemented by Skoda in collaboration with Thanh Cong, a distributor for Hyundai. Under the plan, the first two CKD (completely knocked down) models, Kushaq and Slavia, will be introduced to the market in 2025.
The project is the result of an agreement between Skoda Auto and Thanh Cong Group in 2022 to produce and distribute Skoda-branded vehicles in Vietnam. The partnership aims for localisation, the adoption of modern technology, and the use of clean energy. As of September 2023, imported completely-built-up (CBU) Skoda models were rolled out to the local market.
At the meeting, Zellmer stated, "Vietnam is an important gateway to the ASEAN market. Vietnam has the potential to become Skoda's car manufacturing export hub for ASEAN and other markets.
He also shared the progress of the automobile plant in Vietnam, including the plan to raise localisation rates and the interest in incentive policies from the government.
In response, Prime Minister Chinh lauded Skoda's investment efforts in Vietnam and the automobile plant under construction in Viet Hung Industrial Park, Quang Ninh province. The prime minister proposed Skoda work closely with relevant ministries to ensure the development plan is in line with local regulations. The prime minister also encouraged Skoda to explore new business and investment opportunities in Vietnam.
Prime Minister Chinh noted that Vietnam offers incentives and support for investors who can fulfill requirements such as transferring high technology, raising scientific and technological content, planning large-scale investment, and supporting Vietnamese firms in joining the value chain.
He also called on Skoda to research and develop electric vehicles, increase localisation rates, and transfer technology to Vietnam.
"The Vietnamese government is committed to rolling out the red carpet for Skoda and other Czech investors to implement business effectively and sustainably in compliance with Vietnamese law," the prime minister stated.
