Ford Motor stated on Tuesday it is making an investment of $82 million to expand its plant in northern Vietnam to increase production capacity.
Ford Vietnam, established in 1995, stated the expanded factory would increase the U.S. automaker’s annual capacity in Vietnam to 40,000 vehicles from current volume of 14,000 units annually.
The company reported it sold 32,175 cars in 2019, showing an increase of 31% from 2018.
The additional investment, which will bring the American automaker’s total investments in Vietnam to over $200 million, will come in two stages over a two-year period starting 2020.
Deputy Trade Minister Do Than Hai stated he expected the expansion would decrease Vietnam’s reliance on imported vehicles and therefore reduce the country’s trade deficit.
The construction will expand the facility throughout an additional 60,000 square meters of land, bringing the overall area to 226,000 square meters.
