Interesting.
According to Reuters, on June 28, multinational car producer General Motors (GM) announced in a statement that it has signed a deal with Vietnam's Vingroup to transfer its ownership and operation in Hanoi to Vinfast — Vingroup's automobile manufacturer — by the end of 2018.
Starting from 2019, Vinfast will produce small cars under the GM license and be the exclusive distributor of Chevrolet in Vietnam. The GM plant in Hanoi — which has been used for assembling Chevrolet parts imported from South Korea — will be optimized for producing Vinfast cars. It is unclear what the value of the deal between GM and Vingroup is.
“The GM-VinFast strategic partnership will best position the Chevrolet brand and dealer network for long-term growth in Vietnam by leveraging GM’s global scale and expertise, married with VinFast’s domestic strength and insight,” said Barry Eagle, executive vice president and president of GM International.
This agreement would make the GM plant in Hanoi Vinfast's second car factory since its establishment in 2017. Vinfast is currently building a factory complex in Hai Phong at a cost of US$3.5 billion.
An increase in car ownership and demand combined with the recent tax cut for cars imported from ASEAN countries would make the deal a profitable move for Vingroup. Yet, more cars on the streets would also exacerbate Vietnam's current traffic and environmental problems.
[Photo via Techtimes]
