New Straits Times - - BUSINESS -

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.”


Aapico Hitech Pub­lic Com­pany Ltd pres­i­dent and chief ex­ec­u­tive of­fi­cer Yeap Swee Chuan (third from left) ex­chang­ing doc­u­ments with Vinfast Trad­ing and Pro­duc­tion LLC vice-pres­i­dent Trinh Van Ngan af­ter the sign­ing of an agree­ment be­tween the two com­pa­nies in Bangkok yes­ter­day.

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