A car manufacturing of the Vietnam Engine and Agricultural Machinery Corporation (VEAM) in Bim Son Town's Bac Son District in the central province of Thanh Hoa. The company will construct a factory to produce four-wheel tractors in the province this year. — Photo vccinews.vn

THANH HOA (Biz Hub) — The Vietnam Engine and Agricultural Machinery Corporation (VEAM) will construct a factory to produce four-wheel tractors in the central province of Thanh Hoa.

VEAM chairman of members' board Tran Ngoc Ha made the statement at a meeting with the People's Committee of the province on June 11.

The construction, as part of the corporation's investment programme in the period 2014–18, has an estimated total investment of approximately VND1,357 billion (US$64.6 million).

The construction will be carried out in three years, starting from 2014, and is located in Bim Son Industrial Zone. The corporation is allowed to use 120,000 metre squares for the project for 50 years. Its products will include 100 HP four-wheel tractors and gear boxes for tractors and trucks.

The project is expected to meet 40–50 per cent of demand for the agricultural tractor market in Viet Nam.

VENAM, established in 1980, mainly produces agricultural equipments and machines, tractors, trucks and buses, as well as motorbikes and spare parts. In 2008, it founded VEAM motor factory in Bim Son town's Bac Son district in Thanh Hoa Province, with a total investment of $35 million. In 2010, the factory officially began operation. After four years, it has gained a total revenue of VND1,854 billion ($88.2 million). — VNS