TOYOTA to Expand Investment and Improve Quality

TOYOTA to Expand Investment and Improve Quality

In line with the government policy on the development of the auto industry, Toyota Motor Vietnam (TMV) on October 15, 2004 announced that it has successfully invited two companies, Toyoda Boshoku and Toyoda Gosei, to invest two projects producing auto parts in Vietnam.

The two companies were established in September 2004 as wholly foreign-owned firms producing air bags in Nomura Haiphong IZ. The legal investment capital of the Toyoda Boshoku project is US$9.1 million while that of Toyoda Gosei is US$17 million. The planned investment of Toyoda Boshoku will be US$38.2 million including US$7.3 million for workshops and US$30.6 million for equipment.

According to Mr. Makoto Sasagawa, General Director of TMV, after one year of construction, by October 2005, the two factories will start production. The products will be supplied to TMV and exported mainly to the US and Japan. Toyoda Gosei project will employ 1,200 workers by 2007 including four Japanese experts, and Toyoda Boshoku will have 317 workers by late 2009 including four Japanese experts. The turnover of Toyoda Rosei is expected to be US$72.7 million in 2007 and Toyoda Boshoku US$39.1 million in 2009.

In addition to the Denso Vietnam project which commenced in 2003 and the Toyota Vietnam Export Centre inaugurated in July 2004, these two new projects of the Toyota group have reiterated their long-term commitment and contribution to the development of the auto industry in Vietnam. TMV is leading with an average market share of 30 per cent and is the first auto manufacturer to sell 40,000 cars in Vietnam.

In preparation for the 10^th anniversary of its foundation in Vietnam (1995-2005), TMV will launch a promotional programme of free maintenance service to Toyota cars in Vietnam including Toyota Camry 2.4G, Corolla Altis and Vios.

• K.P