Posco International Corporation, the general trading subsidiary of South Korea's largest steel maker Posco, said it had won a contract to supply parts to Vietnam domestic car manufacturer VinFast.
The company said it had agreed to supply half shafts, which deliver power from the transmission to the wheels, for a new electric vehicle model from next year.
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The parts are to be manufactured by Erae Automotive Systems, a small South Korean auto parts company.
The company said it had agreed to supply parts for up to 100,000 electric vehicles to be produced by VinFast.
Posco International said this was the first supply contract it had signed with VinFast but hoped it would lead to additional business across south east Asia.
VinFast is a local car maker established several years ago by leading Vietnamese conglomerate VinGroup.
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By GlobalDataNew vehicle sales in Vietnam declined by just over 21% to 172,537 units the first nine months of 2020 from 219,238 units a year earlier, including a 22% fall in passenger vehicle sales to 127,136 units and a 19% decline in commercial vehicle sales to 45,401 units.
