Construction Begins on Special Vehicles Plant in Central Vietnam

Construction Begins on Special Vehicles Plant in Central Vietnam

Construction began on the Vinacoal Truck and Special Vehicle Assembling and Manufacturing Plant at Chu Lai's Northern Industrial Park in the central province of Quang Nam yesterday.

The plant, which is owned by the Vietnam Coal Corporation (Vinacoal), is expected to produce and assemble heavy-weight trucks and vehicles for Kamaz and Avtokraz, two Russian and Ukrainian truck and special vehicle companies.

Vinacoal is one of three corporations in the country that specialize in producing heavyweight trucks and special vehicles.

The project will be carried out in two stages over 15 years, with an expected total value of VND5,000 billion ($317 million).

The first stage, which is scheduled for completion in 2010, will cost VND300-500 billion, and aims to produce and assemble trucks and special vehicles for domestic use.

The second stage, which will take place over the following ten years, will transfer production and assembly to locals so they can export the products.

By 2010, the plant, which is part of the Chu Lai Open Economic Zone's Motor and Engineering Technology Complex, should produce and assemble 5,000 vehicles a year, 4,500 of which will be heavyweight trucks.

Kamaz and AvtoKraz plan to produce and assemble 1,500 vehicles at Vinacoal's Motor Industry Company by the end of this year.

The new plant will span 105 hectares within the 27,000 hectares of the national key Chu Lai Economic Zone.

"The project is expected to be a big boost for the province's and the central region's economies," said Nguyen Xuan Phuc, Quang Nam Party Committee's deputy secretary.

The Ministry of Transport expects a demand for 19,000 vehicles this year, with an increase to 43,000 in 2010 and 70,000 by 2010.

Kamaz, whose products comprise 45% of the Russian market and are used in 80 countries in the world, will ensure that all the vehicles are assembled with European-standard engineering, providing environmental protection and efficiency, said Indar Gilfanov, Kamaz's deputy director.

VNS