South Korea auto manufacturer to return to Vietnam

KG Mobility has recently signed a deal with its Vietnamese partner Kim Long Motor to export completely-knocked-down (CKD) cars to Vietnam, according to Yonhap News Agency. A CKD unit is exported in parts and then assembled in the target country.

The company is set to ship the first three SUV models, Tivoli, Korando and Torres, in 2024, and two other models in 2025.

Kim Long Motor is a unit of the Futa Group, also known as Phuong Trang, a popular transportation company in Vietnam.

A representative of Futa Group told VnExpress that there has not been any official information about the partnership.

Kim Long Motors in 2019 said it would build a car manufacturing and assembly plant on an area of 160 hectares in Thua Thien Hue in central Vietnam.

The first phase of the plant is set to cost VND3.3 trillion. It will have a capacity of 16,000 units per year.

KG Mobility bought out SsangYong in June last year, ending the brand’s 35 years of existence.

SsangYong started selling cars in Vietnam in 2000 but left the country in 2018 due to low sales and unfavorable policies.

So far the most popular South Korean auto brands in Vietnam are Kia and Hyundai.