Viet Nam welcomed Mitsubishi Motors Corporation’s plan to build its second auto plant in the country, Deputy Prime Minister Vuong Dinh Hue said while receiving the group’s Executive Vice President Kozo Shiraji in Ha Noi on Monday.

At the reception, Hue highlighted co-operation in auto and support industries as a priority for Viet Nam-Japan ties. Mitsubishi Motors’ expansion in Viet Nam will contribute to the country’s industrialisation strategy within the framework of the Viet Nam-Japan cooperation towards 2020, he said.

Investing in Viet Nam, the group will capitalise on local workforce and enjoy tariff incentives, Hue said, adding that if Viet Nam raised its rate of locally made products to 40 per cent, its exports to other ASEAN member states will enjoy zero tariff.

Viet Nam will create favourable conditions for Mitsubishi Motors to carry out its projects in the country, Hue said.

Thanking the Vietnamese Government and the Ministry of Industry and Trade (MoIT) for their assistance, Shiraji said Viet Nam was one of the key production hubs of his company in Southeast Asia with a pool of young and skilled labours.

He said Mitsubishi Motors was looking for a location to set up its second factory in the country. The plant costs approximately US$250 million, with a manufacturing capacity estimated to reach 30,000 – 50,000 cars on an annual basis.

To ensure the factory’s operation in 2020, developed industrial parks or economic zones near seaports are more likely to be selected, Shiraji said.

The project aims at contributing to the local socio-economic growth and forming more partnerships in eco-car production in the future.

Mitsubishi Motors to partner with VN on electric vehicles

On the same day, Mitsubishi Motors also signed a Memorandum of Understanding (MoU) with MoIT’s Department of Industry on research and development of electric vehicles (EV).

Under the agreement, the two sides will jointly study EVs deemed suitable for Viet Nam’s roads, traffic conditions and available charging infrastructure.

In Viet Nam, electric and hybrid vehicles are not yet popular; however, since the country has a 200-plus volt system, it is easy to charge the vehicles at home.

In addition, because the roads in Viet Nam are quite narrow, compact electric vehicles, such as Mitsubishi’s i-MiEV, are good choices.

Speaking at the signing ceremony, Shiraji expressed his pleasure to co-operate with an agency of the Viet Nam Government towards the use of clean energy. Mitsubishi Motors wants to share the company’s pioneering experiences on electric vehicles and study Government policies, in order to support the application of this technology in a consistent way. — VNS