Kim Long Motor Huế and YuChai Co., Ltd. (China) officially sign a comprehensive strategic cooperation agreement on engine manufacturing and production in Vietnam – Photo: VGP/Nhat Anh
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Building a $260 million automobile engine factory in Hue
At the event, Kim Long Motor Hue Company Limited and YuChai Co., Ltd. (China) officially signed a comprehensive strategic cooperation agreement on engine manufacturing and production in Vietnam, marking a significant turning point not only for Kim Long Motor Hue but also for the Vietnamese automobile industry.
To realize this development strategy, Kim Long Motor and YuChai held a groundbreaking ceremony for the construction of the Kim Long Motor Engine Manufacturing Factory in the Kim Long Motor Hue Automobile Assembly and Manufacturing Industrial Park in the Chan May – Lang Co Economic Zone.
This is the first time Vietnam has been transferred advanced technology to proactively manufacture modern automobile engines and engines for other industries, helping to realize the long-cherished dream of many generations of Vietnamese people and contributing to the industrialization and modernization of the country.
The Kim Long Hue Engine Manufacturing and Production Factory has a total investment of $260 million, divided into two phases. Phase 1 focuses on the production of engines for the automobile industry, with an expected launch in the second quarter of 2025, and a 90% automation rate. The factory’s products are diverse, including engine lines for automobile manufacturing, marine engines, generator engines, agricultural production engines, and engines for the production of machinery used in civil engineering projects…
In the first phase, the factory will prioritize the production and assembly of internal combustion engines (diesel), CNG engines, and electric motors with a capacity of more than 12,000 engines per year, with plans to increase capacity in subsequent years. The next phase will focus on investing in the production and manufacturing of bridges, gearboxes, and automotive drive systems.
The factory’s products will not only meet the production needs of Kim Long Motor and serve the domestic market but also aim to export to ASEAN countries, South Korea, and other markets. This is a solid foundation for Kim Long Motor to increase its technology content and localization rate and gradually participate more deeply in the global supply chain.
With the operation of the Kim Long Motor Engine Manufacturing Factory, along with the large-scale metal stamping mechanics factory and auxiliary technology factories of Kim Long Motor, it is expected to create a breakthrough in production technology, increase the science and technology content, and most importantly, master automobile manufacturing technology in Vietnam, affirming the leading position of the Kim Long Motor brand in the Vietnamese and global markets; making positive contributions to the development of Vietnam’s automobile industry.
Delegates perform the groundbreaking ceremony for the construction of a $260 million engine manufacturing factory in Chan May – Lang Co Economic Zone, Thua Thien Hue province – Photo: VGP/Nhat Anh
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Realizing the Development Strategy of Vietnam’s Automobile Industry
Speaking at the event, Mr. Phan Quy Phuong, Vice Chairman of the People’s Committee of Thua Thien Hue province, said that the Kim Long Motor Hue Automobile Assembly and Manufacturing Complex project is a complex for the production and assembly of passenger cars, trucks, and cars; automobile parts and components manufacturing, with an expected capacity of about 108,800 automobiles/year. After the project was approved for investment, the investor actively coordinated in site clearance, focusing on implementing procedures related to planning, construction, land, and the environment… and started the construction of phase 1 of the project.
Within about 18 months, the company carried out construction with many items, many procedures related to central ministries and branches, and basically completed phase 1 (passenger car production) of the Kim Long Motor Hue Automobile Assembly and Manufacturing Complex project, with an average production capacity of about 500 cars/month.
Since the passenger car assembly plant has been in operation (February 2024) up to now, nearly 300 cars have been produced, including sleeper cars, seat cars, city buses, and mini buses, and more than 200 sleeper cars (34 beds) have been handed over to customers; paid to the state budget in the first 7 months of 2024 about VND 291 billion, accumulated to the present about VND 408 billion; created jobs for about 1,800 people (of which about 70% are laborers in Thua Thien Hue province).
“The comprehensive strategic cooperation agreement signing ceremony between Kim Long Motor and YuChai Co., Ltd. and the groundbreaking ceremony for the construction of the Kim Long Hue Engine Manufacturing Factory today are events of great significance, not only for Kim Long Motor but also for Vietnam’s automobile industry, to realize the Development Strategy of Vietnam’s Automobile Industry approved by the Prime Minister in Decision No. 1168/QD-TTg dated July 16, 2014, and it is also a pride and honor for Thua Thien Hue province,” said Mr. Phan Quy Phuong.
According to Mr. Phan Quy Phuong, the Kim Long Motors Hue Automobile Assembly and Manufacturing Complex project is a key project of the province, and with its initial successes, the investor is currently preparing documents to adjust and increase the total investment capital of the project to about VND 21,000 billion. The project is expected to make positive contributions to the development of the automobile industry, create a spillover effect to attract enterprises in the automobile auxiliary industry to invest in the province, contribute to the economic restructuring, increase the state budget revenue, and create jobs for local laborers.
Mr. Ly Quoc Viet, Deputy General Director of Kim Long Motors, shared: “The Kim Long Hue Engine Manufacturing Factory plays the role of the ‘heart’ in the development strategy of automobile products bearing the Vietnamese brand of Kim Long Motors, meeting the strategic goal of leading the commercial vehicle market in Vietnam and towards exporting. The combination of Kim Long Motors and YuChai brings an optimal solution in terms of safety and fuel economy for engines.”
The strategic cooperation between Kim Long Motors and YuChai is also important in promoting socio-economic development and industrialization and modernization of Thua Thien Hue province in particular and the Central region in general, and promoting economic cooperation and investment between Vietnamese and Chinese partners, practically implementing the agreements of the high-level leaders of the two countries.”
To speed up the progress of the construction of the Kim Long Hue Engine Manufacturing Factory, in particular, and the whole project, in general, the leader of the People’s Committee of Thua Thien Hue province requested that in the coming time, Kim Long Motors Hue Company Limited and its partners focus resources on implementing the construction of the Kim Long Hue Engine Manufacturing Factory, ensuring the progress as planned. At the same time, focus resources on investing in the completion of the whole project, putting it into operation according to the approved investment objectives and progress.
The leader of the People’s Committee also requested the People’s Committee of Phu Loc district to concentrate resources and urgently carry out site clearance and compensation, completing the handing over of clean land to the investor to soon implement the remaining phases of the project; departments, branches, and the Management Board actively support and accompany the investor, quickly solve administrative procedures, remove difficulties and obstacles so that the project is implemented on schedule.
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