AAPICO PARTNERS VIETNAM’S VINFAST IN CAR PROJECT
BANGKOK: Malaysian-owned Aapico Hitech Public Company Ltd is partnering Vinfast Trading and Production LLC to set up a press shop and assembly operations in Vinfast’s Supplier Park in Haiphong, Vietnam.
The joint venture is to supply body-in-white parts for the first two models of Vinfast vehicles — a sedan and a sports utility vehicle to be produced by the third quarter of next year.
“This project has provided a stepping stone for Aapico to enter Vietnam and we are confident that this is the first step to greater things for both our companies,” said Aapico president and chief executive officer (CEO) Yeap Swee Chuan in a statement.
He said the project would be a historic milestone for Vietnam when the first two vehicle models are launched next year.
Aapico is one of Thailand’s leading car parts manufacturer with a market capitalisation of about US$400 million (RM1.6 billion).
The total investment for this joint venture would be about US$60 million, with Aapico and Vinfast holding 51 and 49 per cent equity, respectively. The plant will be built over 9.1ha.
Vinfast would invest US$20 million to build the plant and create the best possible conditions for the factory operation while Aapico would be responsible for the overall management of the project, including total technology and know-how, plant design layout and equipment sizing.
Aapico also has manufacturing operations in India, Europe, the United States, Mexico and China.
Vinfast is a subsidiary of Vingroup, one of the largest conglomerates in Vietnam with a market capitalisation of more than US$14 billion.
Vingroup vice-president and CEO Nguyen Viet Quang said: “With this partnership, we believe there will be more domestic and foreign companies joining Vietnam’s automotive supplier industry.”