Vietnamese automaker Truong Hai Auto Corporation (THACO) plans to set up a new plant to expand the assembly operation of Mazda vehicles in Vietnam, according to a report by the Vietnam News. As part of the co-operative deal with Mazda, THACO aims to assemble 100,000 Mazda vehicles per year, with a capacity of 50,000 per year initially. The details of the project and investment contributions were not revealed. However, the assembly operation is expected to begin in 2018, according to THACO's chairman Tran Ba Duong. The assembly plant will be based in Chu Lai-Truong Hai automotive engineering complex in Quang Nam province, Vietnam.
Significance: Mazda is currently the third-largest player in the Vietnamese automotive market, in terms of vehicle sales and production. Vina Mazda Automobile Manufacturing, which is the subsidiary company of THACO, locally assembles and sells Mazda's line-up in Vietnam, which comprises the Mazda2 (known as the Demio globally), the Mazda3 (known as the Axela globally), the Mazda6 (known as the Atenza globally), and the CX-5, according to IHS Automotive data. By expanding its assembly operations with THACO, Mazda aims to further strengthen its position in the country, where favourable business and macroeconomic conditions, and improved consumer spending, are driving vehicle sales . In May 2015, it was also reported that THACO and Mazda were considering jointly producing engines in the country. Furthermore, the move is also in line with the Vietnamese government's plan to develop the country's automotive industry by 2020
