Honda building Vietnam plant

Honda building Vietnam plant

HANOI: Japanese carmaker Honda Motor Co. has started construction of its first automobile assembly plant in Vietnam, state-controlled media reported on Saturday.

The US$60 million plant is scheduled to begin operating in July next year and is expected to annually produce 10,000 of the company's popular Civic sedans for Vietnam's market, the Youth newspaper said.

The plant, located in the northern Vinh Phuc province, some 40 kilometers north of Hanoi, is Honda's first auto assembly plant in the communist country. The Tokyo-based company currently produces motorcycles in Vietnam.

Other foreign automakers that assembly cars in Vietnam are Toyota, Ford, Mercedes-Benz and BMW. Last year, the companies sold 40,000 vehicles in Vietnam, which has a population of 82 million. -- AP