Vietnam-China partnership to enable export of Kim Long brand cars

Vietnam’s Kim Long Motor and Futa Group have struck a strategic cooperation agreement with China’s Dongfem Dana that will enable the production and export of cars under the Kim Long brand, executives said Friday.

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

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

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.

Kim Long Motor executives said the strategic partnership was a significant step forward in the firm’s goal to become a key player in the automotive sector.

The company has been granted the right to produce various types of axles and will be supported in building a state-of-the-art production line at its automotive assembly plant in the central province of Thua Thien-Hue.

The partnership with Dongfeng Dana will provide Kim Long Motor with high-quality axle systems, further enhancing the performance and efficiency of Kim Long brand vehicles.

The firm 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.

The “breakthrough move” is expected to increase Kim Long Motor’s technological capabilities, improve production and ensure superior product quality, positioning the company to meet both domestic and international demand.

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.

This will open the door for Kim Long Motor to expand its presence in regional and global markets while affirming its leading position in Vietnam’s auto parts manufacturing industry and marking its deep integration into the global value chain.

Dao Viet Anh, CEO of Kim Long Motor, said at the agreement signing ceremony that the company was committed to optimizing resources, technologies and expertise from Dongfeng Dana.

The companies will work closely together to achieve shared goals of elevating product quality, driving sustainable development and positioning themselves as leaders both in Vietnam and in international markets, Anh said.

Kim Long Motor envisioned becoming the leading manufacturer of automobiles and auto parts in Vietnam and expanding its presence in the global automotive supply chain, he said, adding that its strategy involved partnering with global leaders in engine manufacturing, drivetrain systems, and automotive technology to create high tech products with high localization rates and superior quality.

The products will be modern, safe and convenient, Anh stressed.

He also noted the Kim Long Motor Hue Industrial Park was being developed to become a leading regional hub for automotive production and auto parts manufacturing.

“The goal is to achieve a localization rate of 80-90% by the second quarter of 2026 and become a market leader in both production volume and quality of internal combustion vehicles; as also new energy vehicles such as electric buses and trucks,” he said.