With its continuous efforts to renovate technological lines, increase the ratio of locally sourced parts and design models, Vietnam-GM Daewoo Company (VIDAMCO), the first wholly foreign-owned carmaker in Vietnam, has asserted its name on the Vietnamese automobile market over the past 16 years.
VIDAMCO is the second largest foreign-owned automaker in terms of sales in Vietnam. This year, VIDAMCO hopes to sell 14,000 vehicles, up 25 percent compared with 2008. Thus, its sales in the country to the end of 2009 will be 60,000 units valued at US$1,070 million, of which exports generated over US$27 million. The carmaker has paid more than US$400 million to the State Budget.
VIDAMCO has also planned to manufacture new vehicle models. Expectedly, Chevrolet Cruze will be available on the market in February 2010. Probably, older generation, Daewoo Lacetti, will be still assembled to meet the needs of customers. This is like a South Korea-led joint venture to sell Chevrolet Spark and Daewoo Matiz.
Chevrolet Cruze is a very specially important project of General Motors because it targets at middle-class sedan segment where Honda Civic and Toyota Altis rule the roost.
According VIDAMCO, the ratio of localisation in its products is about 40 percent. To achieve this goal, VIDAMCO had to use up their parts of qualified quality and reasonable prices from manufacturers in the country, invited more producers from South Korea to invest in Vietnam, and initiated engine assembly project. VIDAMCO factories can manufacture 10,000 passenger cars and 500 buses a year. The company now has 29 distributors and warranty centres in major cities.
So far, VIDAMCO has successfully invited four automotive parts produces from South Korean to invest in Vietnam, which not only helps the company increase the localisation ratio but also accelerates the plan to export spare parts to ASEAN countries through the network of General Motors (GM). In addition to that parts export plan, VIDAMCO is also exporting its vehicles to other countries in the region.
On the occasion of 16th founding anniversary in Vietnam, VIDAMCO is honourably awarded the Third-class Labour Medal for its outstanding achievements in production and business activities and its contributions to the socioeconomic development of Vietnam. General Director Jung In Kim also has been presented the certificate of merit from the Prime Minister of Vietnam.
VIDAMCO has also deployed many social development activities of great significance, including the finance for building 10 houses for the poor and the scholarship for its employees’ children and 21 outstanding arts students in the country. The total value of the funding programme was amounted to VND700 million. So far, the company has financed US$730,000 to social development and charity activities.
Huong Ly
Vietnamese
