Hao Hsing Investment company from Taiwan will commence construction of the first car and motorbike exhaust pipe factory in Da Nang with total investment of US$7 million. — VNS Photo Cong Thanh

Hao Hsing Investment company, an investor from Taiwan, will commence construction of the first car and motorbike exhaust pipe factory in the central city’s Hoa Khanh Expanded Industrial Zone in the second quarter of this year.

The factory, which will be built on area of 4.7ha with total investment of US$7 million, was designed with a production capacity of 500,000 sets of exhaust pipes per year. It is expected to begin operations in 2020.

It also plans to produce accessories and spare parts for automobiles and motorbikes for export and local car production suppliers in the near future.

Da Nang has called for investment in hi-tech industries and production projects dealing with the lack of supportive industries in the automobile sector.

Mabuchi Motor company plans to expand its existing plant in Hoa Khanh Industrial Zone with a fund of $30 million, while TCIE Viet Nam (a member of Malaysia’s Tan Chong Motor Group) agreed to spend $50 million to build the second Nissan car manufacturing factory in the zone in the third quarter of 2019.

In 2013, Malaysia’s Tan Chong Motor Group started production of Nissan cars with total investment of $40 million.

At the Spring Dialogue in March, Da Nang granted investment licences to eight projects worth $490 million and 11 other feasibility studies projects with an estimate of $3.5 billion. — VNS