Volkswagen and Phu Thai Holdings are expected to build an auto assembly factory in Viet Nam next year— Photo nurkose.net

HA NOI (Biz Hub) — Auto giant Volkswagen and Phu Thai Holdings have been negotiating to set up an auto assembly unit in Viet Nam.

Before the investment process, Phu Thai Holdings will possibly become an official importer and distributor of Volkswagen vehicles in the country. The distribution agreement will be the first step taken by the two sides to evaluate the market and select products for the assembly work in the future.

Speaking to baogiaothong.vn recently, Chairman of Phu Thai Holdings confirmed this report. He said the two firms' leaders had been pushing for the negotiation process to promote investment in an auto assembly factory in Viet Nam.

Phu Thai Holdings has been closely co-operating with the PON Group, a distributor in the Netherlands of Volkswagen cars, which has been assigned to support Phu Thai Holdings in building a detailed development plan of their future co-operation.

It's reported that Volkswagen will not only develop its business in the Vietnamese market, but also boost production and localisation of products to export to the country's neighbours such as Cambodia, Laos and Myanmar.

Although the Volkswagen brand has been affected in the global emissions tests scandal, Chairman Doan expressed his belief that the German automaker would soon overcome this difficult stage.

He said the Volkswagen scandal would not affect the co-operation plan between the two sides, which are expected to launch official negotiations early next year.

Phu Thai Holdings is a multi-sector group involved in the sectors of retailed consumer products, financing and distributing machines and heavy special-use vehicles.

The group has been assembling and distributing the products of American firm Catterpilar, one of the world's leading machine and engine companies. — VNS