Auto manufacturing project in central Vietnam raises investment by over $810 mln

Vietnamese automaker Kim Long Motor Hue JSC (Kim Long Motor) has received approval from Hue authorities to raise investment in its automotive manufacturing and assembly complex in the central city by VND21.18 trillion ($809.94 million).

The Kim Long Motor Hue Automobile, Parts & Components Production Complex, located in the Chan May-Lang Co Economic Zone, was initially approved with a total investment of $260 million and is being developed in two phases.

The investor has basically completed the first phase, covering 30 hectares, which includes a complex of factories for automobile manufacturing and assembly, mechanical engineering, engine and drivetrain production, and component and parts manufacturing.

The move to ramp up investment underscores Kim Long Motor’s ambition as the company accelerates preparations for the second phase.

Meanwhile, authorities in Hue are positioning the Kim Long Motor Hue Automobile, Parts & Components Production Complex as a key driver to achieve its GRDP growth target of 10% this year.

In addition to the project, Kim Long Motor has reportedly proposed a social housing project to the municipal People's Committee. The project, expected to be located in the Chan May Urban Area within the Chan May-Lang Co Economic Zone, carries a total investment of VND580 billion ($22.18 million).

The 18,788-square-meter project is designed to house around 2,065 residents across 898 units, including 780 social housing units and 118 commercial apartments.

Setting sights on international markets

Established in 2018, Kim Long Motor is headquartered in Hue city. As of December 2024, the company had a charter capital of VND3.98 trillion ($152.19 million).

Nguyen Huu Luan, who chairs the company's board, also heads the multi-sector Phuong Trang ecosystem (Futa Group).

Beyond domestic manufacturing, the chairman is signaling ambitions to go global, with a series of contracts already signed to tap into international markets.

In November 2024, Kim Long Motor and Futa Group signed a strategic cooperation agreement with China’s Dongfem Dana that enables the production and export of cars under the Kim Long brand.

The agreement, reached in China’s Hubei province, focuses on the production and distribution of automotive axles.

Under the agreement, the trio will collaborate on the transfer of technology and production lines as well as exclusive distribution of automotive axles, including both internal combustion and electric vehicle axles, in Vietnam.

Executives called the signing a historic milestone for all parties involved and for Vietnam’s domestic automotive industry.

Kim Long Motor will produce up to 80,000 axles annually, which is equivalent to approximately 40,000 commercial vehicles, with the highest level of automation (more than 60%) in the industry.

In addition to manufacturing and distributing Dongfeng Dana axles in Vietnam, Kim Long Motor will also focus on the production and export of completely built vehicles under the Kim Long brand, incorporating the "golden" drivetrain systems provided by the Chinese partner.

In January 2025, Kim Long Motor and China’s Changan Automobile Co., Ltd. also agreed join hands to build a plant manufacturing 5-7 seat passenger cars in Hue.

Under the cooperation agreement, the Kim Long Truong An Vietnam plant will be built on a 30-hectare site, with a designed capacity of 50,000 units per year.

Its construction is expected to begin in 2025, with a localization rate of 40% initially and 80% by the second quarter of 2026.

In South Korea, Kim Long Motor signed a contract with DAON Mobility Co., Ltd. in April to supply 200 buses annually for tourism operations and student transportation across the country.

Last month, Kim Long Motor also signed another contract with Thailand’s Cho Thavee Group to supply 3,000 electric buses and Yuchai-engine buses annually. The vehicles, manufactured at the Kim Long Motor Hue engine plant, will be used for passenger transport operations across Thailand.