Kim Long deal marks turning point for Vietnam’s auto industry

Kim Long deal marks turning point for Vietnam’s auto industry

Kim Long Motor has taken a major step in its regional expansion, securing a landmark export deal that strengthens the presence of Vietnamese-made vehicles abroad.

On December 9, Kim Long Motor JSC signed an agreement with Thailand’s Kijsetthi Mobility to supply 1,000 Kim Long–branded buses to the Thai market. The contract marks a significant milestone in the company’s push to take Vietnamese-manufactured products global, underscoring its production capabilities and supporting Vietnam’s ambition to climb higher on the global automotive map.

Kijsetthi Mobility is a major player in Thailand’s mobility services sector, with operations spanning commercial vehicle trading, spare-parts distribution, and truck–bus repair and maintenance. The company is also expanding into sustainable transport solutions as Thailand accelerates its shift towards electric vehicles. Its established network and strong supply capabilities make it a well-aligned partner for Kim Long Motor in bringing Vietnamese-made buses closer to Thai customers.

Under the agreement, Kim Long Motor will supply a range of key bus models, including 12-m internal combustion and fully electric buses, 7.8-m combustion engine units, and a 7.5-m electric model. All products are developed by the company’s engineering team at its research and development centre, designed to meet Thailand’s operating conditions, terrain, and technical standards.

The 7.5-m and 12-m electric buses are the standout products in the contract, offering modern design, smooth operation, and low-emission performance. Both models use BYD’s latest battery systems, produced and assembled at the battery plant inside Kim Long Motor Automobile Industrial Park in Hue. The batteries deliver stable performance and energy efficiency, supporting Thailand’s push towards greener transportation.

The Kim Long 99 bus line (12-m seating and sleeper versions) also stands out for its comfortable design and the latest Yuchai K11 engine, which delivers strong performance while consuming only 19–22 litres per 100km. With more than 2,000 units already in operation, the engine has proven its stability and cost efficiency. Meanwhile, the 7.8-m Euro 5 bus, with its compact and agile design, is seen as well suited for Thailand’s high-traffic urban routes.

All products in the contract are manufactured at Kim Long Industrial Park in Hue –⁠ where automated production lines, digitalised management, and internationally standardised processes are applied.

A representative of Kijsetthi Mobility said, “We surveyed Kim Long Motor’s production facilities and were impressed by its ability to fulfil large orders within a short timeframe. After visiting the factory and seeing the modern production lines and finished products, we have strong confidence in this cooperation.”

“We believe this agreement will open up long-term development opportunities. Kim Long buses will gain stronger recognition among customers and contribute to advancing sustainable mobility solutions in Thailand and across Southeast Asia," he said. "As we witness a fast-evolving shift towards green, smart, and sustainable transport, Thailand is regarded as a strategic market with demanding technical standards and strict quality requirements. The signing and execution of the 1,000-bus order confirms that Kim Long Motor’s products and manufacturing capacity meet Thailand’s rigorous benchmarks, while also reinforcing the growing role of Vietnamese enterprises in the regional commercial vehicle supply chain."

This milestone provides strong momentum for Kim Long Motor to continue investing, expand production, reach new markets, and pursue its ambition of becoming one of Southeast Asia’s leading commercial vehicle manufacturers and exporters.

The momentum is further strengthened by the inauguration of Kim Long’s Engine Manufacturing and Assembly Plant at Chan May-Lang Co Economic Zone in Hue on December 5. Spanning 6.5 hectares with an initial investment of $260 million and an automation rate of up to 90 per cent, the facility enables the production of multiple engine models that meet international standards for buses, minibuses, and next-generation commercial vehicles.

The launch marks a significant step in the company’s development and represents a positive sign for domestic car-manufacturers, signalling a shift towards mastering core mechanical and manufacturing technologies rather than remaining concentrated at the assembly stage.

Nguyen Si Dung, former Vice Chairman of the National Assembly Office, said, “For years, Vietnam’s automobile industry has depended heavily on imported components, especially engines – the most complex and value-defining part of any vehicle. With the Kim Long Engine Manufacturing and Assembly Plant now operational, equipped with over 90 per cent automation and full data traceability, we are seeing an important shift. Vietnam is finally moving closer to the core of the automotive value chain.”

He added, “To maximise this opportunity, Vietnam needs to build a stronger supporting-industry ecosystem, develop a skilled workforce, upgrade technological capacity, and plan industrial zones strategically. If these elements come together, this new facility could mark the start of a new chapter for the country’s automobile industry.”

As more core components are produced domestically, localisation will rise, trade deficits will narrow, and added value will increase – strengthening Vietnam’s precision engineering sector, a key pillar of modern industrialisation. This progress will also help Vietnam move up the global value chain, supported by a more capable mechanical industry geared towards a green, clean and sustainable future.

VIR