Excavators are ready for the factory's ground-breaking ceremony. — VNA/VNS Photo Duc Phuong

Construction of an automobile assembly and manufacturing factory, expected to cost over VND3.2 trillion (US$137.4 million) kicked off on Sunday in the northern province of Ninh Binh.

Financed by Thanh Cong Group, the Hyundai Thanh Cong No 2 factory has a production capacity of 100,000 vehicles each year. It spans 50ha in the province's Gian Khau Industrial Park.

The factory is divided into two phases with the first expected to be completed in 2022 while the second is slated for completion in 2025.

The new factory - Thanh Cong Group's second of its kind in the province - is considered one of the firm's most important projects.

Dinh Van Dien, chairman of Ninh Binh People's Committee, said Thanh Cong Group's business expansion in the locality is appropriate with the province's socio-economic development strategies and that of Viet Nam's automobile industry.

Local authorities will create favourable conditions for Thanh Cong Group to develop its second factory as well as other projects in the near future. — VNS