Toyota will launch next month a factory expansion in the northern province of Hung Yen with an investment of $25 million.
Equipment installation is set to begin in March and official production the following month, according to a draft report by the Ministry of Environment and Natural Resources (MoNRE) on the project’s environmental impacts.
The project will be carried out by Toyota Industrial Equipment Vietnam, a subsidiary of Toyota Industries Corporation.
The project, located at the Thang Long II Industrial Park, will cover 4.8 hectares in two land lots. The industrial park has already constructed supporting infrastructure for the project.
Toyota’s factory in the industrial park has an annual capacity of 53,110 items a year, equivalent to 6,600 tons. The products include engines for material handling equipment, axles for motor vehicles, forklifts, and small tractors.
After the expansion, the annual capacity can go up to 234,000 items, or 11,129 tons. The expansion will focus on engines for object transport equipment and will stop manufacturing of some products, including forklifts, small tractors and axles for motor vehicles.
Toyota started investing in Vietnam three decades ago, in 1995. In 2023, the Japanese firm paid $873 million to the state budget, raising the total payments to $13 billion. Toyota’s vehicle sales in Vietnam reached 59,207 in 2023 for an accumulated total of 916,000.