Russian firm approved for a car and bus plant

The local automobile market might see a new heavyweight player in the future
Photo: Le Toan

Duong Ngoc Oanh, head of investment promotion agency under Binh Dinh’s Management Board, confirmed to VIR that Russia’s Buscenter Met had received a licence for a factory to  make  busses and cars with total registered capital of $1 billion covering nearly 50 hectares in Nhon Hoi Economic Zone.  

It was expected to start construction after 45 days since receiving the licence. However, “it could take about 7-8 months for investors to carry out because the construction process could lengthen,” said Oanh.  

“After three years of construction, the factory would churn out agricultural tools, auto parts, buses and cars. It would export 70 per cent of its products worldwide and is expected to lure 3,000 to 5,000 workers,”  said Man Ngoc Ly, director of Binh Dinh Economic Zone Management Authority.  

Ly said that this would be  one of the big projects supporting the socio-economic development of Binh Dinh and the central region as a whole. He predicted the project would lure other vendors to the central region for manufacturing automotive spare parts as well as encourage automakers to expand investment in this country.  

Recently, Binh Dinh has seen an upsurge in investment projects. According to the Binh Dinh Planning and Investment Department, the province has lured 40 foreign investment projects with a total registered capital of $410 million from the US, Japan, China, Korea, the UK, Russia, Singapore, Malaysia, Germany, Thailand and Australia.  

Ly stressed the provincial committee committed to strongly support investors because provincial leaders were aware that the success of investors would reflect investment climate in Binh Dinh province.