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Vietnam terminates failed automaker's project

By Le Hoang   April 28, 2022 | 09:01 pm PT
The central province of Thanh Hoa has terminated the manufacturing plant of Vinaxuki, one of Vietnam’s earliest automakers, who went under seven years ago.

Thanh Hoa authorities will revoke the land and hand over the site to investment company TF Group to produce commercial cars with an investment of VND6.9 trillion ($300.67 million).

The auto manufacturing and assembling plant with a total capital of VND1.36 trillion began operation in 2011 and became inactive two years later as Vinaxuki struggled financially. It has not been reopened since.

The company originally wanted to make 15,000 trucks, 400 buses and 75,000 tons of auto parts a year.

Vinaxuki, established in 2005, and Truong Hai Auto were the first two private companies given operation permits.

The company thrived in the 2006-2009 period but fell into a crisis in 2010 and was forced to sell its factory to repay debts. By 2015, it was dissolved.

Before the company went under, its Chairman Bui Ngoc Huyen had repeatedly asked for help from the Prime Minister and other government bodies to save the company. He even sold his houses to pay the debt.

 
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