Toyota plans $359 mln plant expansion in northern Vietnam

Toyota Motor Vietnam (TMV) plans to invest about VND9.46 trillion ($359.2 million) in the first phase of its plant expansion project in Phu Tho province.

General director Nakano Keita disclosed the information at a meeting with Tran Duy Dong, Chairman of the provincial People's Committee, on Wednesday.

The executive added that the project, located in Phuc Yen ward, the former Vinh Phuc province (now part of Phu Tho province after their merger) will focus on developing electrified vehicle models, including hybrids. Its construction is set to begin in 2026 and operations are expected to start by Q4/2028.

Phase 1 (2026-2028) will include the construction of a new 35,000 sqm manufacturing facility, increasing the plant’s capacity by an additional 15,000 vehicles per year.

The total investment for this phase is approximately ($359.2 million), with the new facility expected to be operational by Q4/2028.

Phase 2 (2028-2029) will involve further investment to build a 40,000 sqm vehicle assembly and inspection line, continuing the company’s efforts to modernize and scale up production.

Toyota Motor Vietnam has urged provincial authorities to expedite the approval of its investment registration certificate to meet the project timeline.

The company also proposed an extension of its land use rights from 2035 to 2045 to ensure long-term operational stability.

At the event, Dong praised Toyota Vietnam's continued investment and its alignment with the Vietnamese government's orientation toward green and sustainable mobility, especially through hybrid vehicle development.

He expressed full support for the company's expansion plan and assigned the Department of Finance, in coordination with other relevant agencies, to assist Toyota in completing the necessary procedures for investment expansion approval.

TMV was established in September 1995 as a joint venture between Toyota Motor Corporation (Japan) holding 70%, state-controlled Vietnam Engine and Agricultural Machinery Corporation (VEAM) 20%, and Kuo International Co. Ltd. (Singapore) 10%, with a total registered investment capital of $163.28 million.

After nearly 30 years of operation, TMV remains a leading player in the domestic automotive industry. To date, the company has produced over 700,000 vehicles.

By 2025, five years after launching its first hybrid models in Vietnam, TMV's cumulative hybrid vehicle sales are expected to reach approximately 17,300 units. Notably, in the first half of 2025 alone, the company sold nearly 3,500 hybrid vehicles, double the figure recorded in the same period of 2024.

TMV has partnered with 61 domestic suppliers, including 13 Vietnamese-owned companies, contributing to over 1,000 localized components.

The company currently operates a nationwide network of 86 dealerships, including two Lexus showrooms. It directly employs over 1,500 workers and indirectly supports the livelihoods of more than 76,000 people within its supply chain ecosystem.

In the first eight months of 2025, TMV recorded sales of over 41,000 vehicles , a 23% increase compared to the same period in 2024. Of this, 17,000 units were produced in Vietnam.

The company's export turnover exceeded $52 million, and it contributed more than $600 million to the state budget during this period, bringing its cumulative budget contributions since establishment to approximately $14.47 billion.