The Truong Hai Automobile Company (Thaco) and Korean LS Mtron company has inked an agreement on co-operation in agricultural machinery manufacturing and distribution in Viet Nam and abroad, starting in October 2017. — VNS Photo

The Truong Hai Automobile Company (Thaco) and Korean LS Mtron company has inked an agreement on co-operation in agricultural machinery manufacturing and distribution in Viet Nam and abroad, starting in October 2017.

It’s another milestone for the local carmaker from Quang Nam Province in further diversifying production. Thaco has already manufactured and distributed vehicles of three foreign brands - Kia of South Korea, Mazda of Japan and France’s Peugeot.

Under the agreement, Thaco will be the exclusive agent of LS Group’s farming machinery distribution and production in Viet Nam under its own trademark.

The two sides agreed a 50-per cent localisation programme for agricultural machinery manufactured in Viet Nam in order to boost exports to ASEAN markets.

“The co-operation between Thaco and LS Mtron under LS Group in Korea will help speed up mechanisation of farming in Viet Nam, and create a value chain in the agricultural machinery industry,” said Thaco’s chairman, Tran Ba Duong.

Ja-Eun Koo, vice president of LS Group, said LS Group already has two LS cable and system factories in Dong Nai and Hai Phong, and LS Mtron’s electronic components factory in Bac Ninh province.

He said LS Mtron, which is among LS Group affiliates, specilises in industrial machinery and high-end components, and the co-operation with Thaco will turn it into a leading ASEAN producer. — VNS