Vietnam’s dominant foreign car assembler, Toyota Motor Corp., reportedly said on Friday it had received licenses to set up two parts plants with a combined investment of $US52.78 million.

The plants, to be built in the northern port city of Hai Phong, will produce airbags for export, a company official told Reuters.

Toyota, which accounted for more than one-fourth of all car sales of the 11 foreign car makers in Vietnam during the first eight months of this year, had forecast a 25% drop in its car sales in 2004 due to higher taxes, the news agency noted. The firm’s sales during the January-August period fell nearly 18% to 1,277 units.

But car dealers expect sales to pick up between now and the end of the year as buyers rush to beat a state plan to raise special consumption tax rates to 40% from January 2005 from 24% this year, Reuters added.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.