Two low and medium-priced automobile manufacturers from Malaysia and China will enter Vietnam next month, further boosting competition in the marketplace, heard the ongoing AutoPetro 2006 in Ho Chi Minh City.
JRD Motor Industries (Vietnam) Co. Ltd., a US$100-million joint venture between Vietnam and Malaysia firms, displayed a range of 5-8-seat vehicles and pickups from Malaysia at the international trade fair opened yesterday.
Jimmy Liew, founder of Malaysia’s JRD Automobile Group, said, the presence at the annual exhibition is part of the JRD’s first step into Vietnam. Initially, JRD will introduce some of their vehicles and conduct market surveys.
JRD Motor Industries (Vietnam), which received an investment license last year, is currently finishing construction of a US$100-million factory in the central province of Phu Yen. JRD will officially launch its first models to local users next month.
“The main structure of the new auto plant has basically been completed and the production line and associated equipment is now being installed,” he said.
The 50-ha automobile plant will operate two shifts per day to churn out 30,000 units annually in the first phase. The company expects to be able to increase production to 100,000 units per annum by 2008.
The factory, a 30:70 joint venture between Phu Yen Import-Export Company and JRD Motor Vehicle Co. Ltd, will use Malaysian technology but import engines from Japan and Korea.
“These cars will be cheaper than those manufactured by other joint ventures as our target customers are low to medium-income people,” he said.
“With our competitive price, I believe that our four-wheelers will prove popular with users, since very few people have cars yet although many would like to,” he added.
Meanwhile, China’s Lifan Group is also shining at the four-day trade fair, aiming to attract more attentions of local people after its success in introducing cheap Lifan 520 in Hanoi in June.
Nguyen Quoc Toan, general director of Bao Toan Co. Ltd - the exclusive distributor of Lifan five-seat vehicles in Vietnam, said that it hopes to launch the first cars onto the domestic market next month, which it believes will prove popular because of their competitive prices, which will start at about $16,000.
However, most member companies of the Vietnam Automobile Manufacturers Association (VAMA), which are dominating the automotive industry of Vietnam, are keeping away from the Autopetro 2006 show.
There are some 120 companies attending the event at the Ho Chi Minh City International Exhibition and Convention Centre but VAMA members like Mercedes-Benz, Ford, Toyota, VMC, Vidamco and Isuzu are not present.
The exhibitors are mainly local manufacturers and new foreign faces, such as Vinaxuki, Lifan, JRD, Vinamotor, Tracimexco, Hoang Tra, Hong Viet, Ha Giang, Hoang Mai, Vinacomin, Samco and Saigon Parts. They produce economy cars.
The event will feature several seminars on the development policies for Vietnam’s automobile industry, lessons that can be learnt from previous experiences, and on studies about successful growth models.
The annual event switches between Hanoi and Ho Chi Minh City.
STD, Young People
Vietnamese
