Toyota to drive expansion of green vehicle production in Vietnam

Deputy Prime Minister Ho Duc Phoc on Wednesday received Tien Quoc Hao, president of Toyota Motor Asia, who is leading a working delegation to Vietnam.

The Deputy PM praised Toyota’s performance over the past three decades in Vietnam, noting in particular the company’s social contributions.

He emphasized that Japan remains Vietnam’s leading partner in official development assistance (ODA) and labor, third in investment and tourism, and fourth in trade. Locality-to-locality cooperation, cultural exchanges and human resources collaboration are also deepening, he added.

Highlighting the role of Japanese firms, including Toyota, in investment, production and business partnerships, Phoc expressed his hope that Japanese investors would continue to expand both direct and indirect investment in Vietnam, replicating Toyota’s success.

Sharing updates on Vietnam’s economic outlook, the Deputy PM said the country aims for GDP growth of 8.3-8.5% this year, with foreign trade exceeding $900 billion and inflation at around 3.6%.

In the next term, Vietnam targets double-digit growth. In transport, the government is gradually shifting from fossil fuels to renewable energy and is encouraging clean-energy and high-tech projects.

Against this backdrop, Phoc urged Toyota to further expand its production and business operations in Vietnam.

Tien Quoc Hao thanked the government for its consistent support, particularly in financial and investment policies, which have enabled the company’s strong performance in Vietnam.

Over the past 30 years, Toyota has produced more than 700,000 vehicles domestically, sold over 1 million cars in Vietnam, and exported vehicles worth more than $1 billion. The company has partnered with 61 local suppliers, increased localization rates, created 1,500 direct jobs, and supported an ecosystem employing over 76,000 people.

Looking ahead, he said Toyota is committed to promoting carbon neutrality and popularizing automobiles in Vietnam through diverse, environmentally friendly solutions.

Plans include improving efficiency at its Vietnam plant, enhancing product quality, introducing more compact and mid-sized hybrid vehicles, expanding its product range and boosting localisation.

He also put forward recommendations to help foreign enterprises operate more effectively and sustainably in Vietnam.

Deputy PM Phoc applauded Toyota’s achievements and reaffirmed that the Vietnamese government would continue to create favourable conditions for Japanese businesses, including Toyota, to do long-term business and expand investment in the country.

Established in September 1995, Toyota Motor Vietnam is a joint venture between Toyota Motor Corporation, Vietnam Engine and Agricultural Machinery Corporation (VEAM), and Singapore’s KUO Group.

Its plant has been recognized as one of Toyota’s best in terms of product quality in the Asia-Pacific region.