Vietnam welcomes Mitsubishi Motors’ plan to build its second factory in the country, stated Deputy Prime Minister Vuong Dinh Hue during the reception for the Japanese group’s Executive Vice President Kozo Shiraji in Hanoi on January 15.

Deputy Prime Minister Vuong Dinh Hue (R) and Executive Vice President of Mitsubishi Motors Kozo Shiraji. (Credit: VGP)

Deputy PM Hue said that Vietnam and Japan are both interested in promoting cooperation in the automobile and supporting industries, which are Japan's strength while Vietnam is in need. Vietnam pledges to create favourable conditions for investors, including Japan and Mitsubishi Motors, to facilitate their projects in Vietnam in compliance with international trade rules, he affirmed.

The government senior official said investing in Vietnam, a potential market for automotive consumption, Mitsubishi will benefit from the local abundant and skilled human resources, as well as tariff incentives. He also added that if Vietnam raises the rates of locally made products to 40%, its exports to other ASEAN member states will enjoy zero tariff.

Kozo Shiraji expressed his sincere thanks to the Vietnamese Government and the Ministry of Industry and Trade in supporting the group, saying that Vietnam is one of the potential markets for Mitsubishi in Southeast Asia with a source of young and skilled workers.

Informing the Vietnamese Deputy PM on his group’s plan to open its second factory in the country, Kozo Shiraji revealed that the facility costs approximately US$250 million, with an estimated manufacturing capacity of 30,000-50,000 cars per year

As Mitsubishi is looking for a location to build the plant, developed industrial parks or economic zones near sea ports are most likely to be selected, he said, adding that the project would contribute to the local socio-economic growth and the formation of more partnerships in eco-car production in the near future./.

VNF/NDO