Nissan to enter Vietnam

Nissan to enter Vietnam

TOKYO (AFP): Japan's Nissan Motor Co. Ltd. said it planned to
launch motor vehicle production in Vietnam with Danang Automobile
Mechanical Factory.

Nissan said it will apply to the Vietnamese government with
Danang Automobile for approval to form a joint venture to produce
vehicles.

Nissan TCM Pty. Ltd. will hold a 75 percent stake in the
venture, with Danang Automobile holding the remaining 25 percent.

Nissan TCM is a joint venture between Nissan, Malaysia's Tan
Chong and Sons Motor Co. Shd. Bhd. and Japan's Marubeni Corp.

The joint venture would have paid up capital of US$20 million,
Nissan said, with the total investment in plant and equipment
estimated at US$53 million.

Combined output of 1,000 units is planned in the first year of
operation, with production of the Nissan Sunny and Vanette
planned, it said.

Nissan said the vehicle market in Vietnam was currently
10,000-to-20,000 units annually, with demand expected to rise to
60,000 units by the end of the decade and to 80,000 units by
2005.