Nissan Motors Company said it was considering resuming its automobile production project in Vietnam, having established the Nissan Vietnam LLC (NVL) joint venture with international vehicle distributor Kjaer Group A/S.
The US$10 million joint venture, licensed last month, would initially focus on importing and distributing Nissan vehicles in Vietnam, as well as providing Nissan parts and accessories, Japan’s second biggest automaker said.
“We have a long-term plan focused on enhancing our business, which includes studying the possibility of local production in the future,” said NVL general director Flemming Eltang.
“Vietnam is a promising new market for Nissan and offers the kind of growth opportunities that can justify investment in localized production,” said Colin Dodge, Nissan’s senior vice president for global overseas markets.
The Denmark-based Kjaer Group and its wholly-owned Vietnamese subsidiary Motorcare Co sold 518 imported vehicles last year in Vietnam, including the Nissan pick-up, the Tiida hatchback, and the X-TRAIL SUV.
Back in 1996, Nissan, together with Tan Chong of Malaysia and Danang Auto Engineering Factory, had put forward US$110 million plans to built an auto factory in the central province of Danang to produce 3,600 Nissan sedans per year.
The consortium received an investment license that year.
However, plans were delayed after the 1997 regional financial crisis and low domestic demand, until the Government finally cancelled the license in 2001. (Labor, Youth)
Vietnamese
