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.