Vietnam’s Trade and Material Production Co. (TMT) has recently signed the first phase joint venture contract worth US$10 million with the China First Automobile Group to produce, assemble and trade Tidy sedans in Vietnam, local media reported.
“TMT and the Chinese partner will market some 5,000 Tidy sedans in the initial phase,” said Bui Van Hu, general director of TMT, a subsidiary of the State-run Vietnam Motors Industry Corp. (Vinamotor).
The first Tidy sedans with 1.0L and 1.3L engine sizes will make a debut in Vietnam in May 2006, Hu said.
“Later, we will manufacture sedans with large engine capacities to meet the diversified demand in the domestic market,” said the official.
Tidy sedans, with four or five seats, need 5-5.5 liters of fuel for a 100-km travel distance, lower than other cars with the same engine size.
Tidy, a product of the China First Automobile Group and Toyota, is currently the Group’s best seller in the United States.
A Vietnamese-assembled Tidy costs slightly over US$10,000.
TMT is now also assembling Jiulong trucks with main parts imported from China. Between February and April of this year, TMT sold over 1,200 Jiulong trucks.
In Vietnam, assembling Chinese cars is the top choice of domestic firms due to cost factors and technologies.
Influential carmakers like Truong Hai and Vinaxuki are manufacturing China-originated Chinfon, Jinbei and Chengjiang
Vietnam now has some 200 car manufacturers and parts suppliers, which turned out nearly 7,100 automobiles in the first three months of this year, down roughly 40 per cent on year.
P.V
Vietnamese
