Suzuki will build a new automobile plant in southern Vietnam, spending about JPY1bn in an effort to meet growing demand for cars in the country.

The automaker told Kyodo News it planned to start operation of the new plant in Dong Nai Province in 2013 to manufacture vehicles including compact cars and light commercials. It will initially make 5,000 units per year and boost its production capacity in the near future.

The automaker has been producing motorcycles and automobiles since 1996 in Vietnam and produced about 3,000 cars in the business year to March.

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