Daihatsu Withdraws from Vietnam Business
Daihatsu Motor Co. will dissolve its affiliate in Vietnam following a long time of unprofitable operations, local media said.
A source said unsatisfactory business performance has led to Daihatsu’s withdrawal from the joint venture Daihatsu Vietindo, or commonly known as Vindaco.
Vindaco sold only 173 vehicles in the first 5 months of this year, accounting for a mere 0.8 per cent of the domestic market share.
The figures released by the Vietnam Automobile Manufacturers Association (VAMA) said Vindaco sold 530 cars in 2006; 453 units in 2005 and 813 units in 2004.
Vindaco, established 1995, is a US$32-million five-party joint venture owned by Vietnam’s Transico (33 per cent of stakes), Japan’s Daihatsu (26 per cent) and Kanematsu Corp, and Indonesia’s PT Astra International Tbk and PT Mitra Andasantika.
Previously, Germany-based BMW also retreated from VMC joint venture after a long time of unprofitability.
Daihatsu Motor Co. said it will return Vietnam to distribute cars at a suitable time.
The Vietnamese automotive industry is now dominated by 15 VAMA member companies, including Toyota, Ford, Mitsubishi, GM-Daewoo and Honda.
In 2006, VAMA members sold 40,853 vehicles in 2006. (Vneconomy)
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