Ford Motor Company today announced an investment of US$10 million to expand production at Ford Vietnam's Haiduong assembly plant, increasing annual production capacity by 35 percent. The new investment reaffirms Ford's commitment to developing and implementing an aggressive growth strategy in Vietnam, and the expanded production will make Ford's local assembly operations one of the biggest among the country's Foreign Direct Investment (FDI) auto makers.
“This additional investment highlights the growing significance of Vietnam in our continued expansion and overall strategy for the Asia Pacific and Africa region. We’re very optimistic about Ford's long-term potential in Vietnam," said David Alden, president of Ford ASEAN. "Our Vietnam strategy is aligned with our resources and operations in the region, and will allow us to continue delivering high quality Ford products that are built for ASEAN, and specifically Vietnamese consumers.”
Ford Vietnam's expanded annual production capacity of 9,500 units is scheduled to be online by the middle of the year, helping to meet increasing demand of Ford vehicles in Vietnam's rapidly expanding auto sector. The Haiduong plant was developed and designed as a highly-flexible facility, and this expansion will allow Ford to increase and adjust production rates to meet real-time customer demand across its product range.
The Haiduong facility currently assembles the Ford Mondeo and the Ford Focus passenger cars, Ford Everest and Ford Escape SUVs, Ford Ranger pickup, and the Ford Transit van. Ford Vietnam achieved record-sales in 2007 of 5,975 vehicles, or a 165 percent increase over 2006.
“Ford Vietnam’s top priority is to expand and optimize our local market investment by increasing capacity to build high-quality and high-value vehicles for Vietnamese consumers. Today’s investment underscores the commitment of Ford Motor Company to Vietnam, and our confidence in a strategy to expand our local assembly operations,” said Michael Pease, general director of Ford Vietnam.
Ford established operations in Vietnam in 1995, with a registered capital investment of more than US$ 100 million, and today the company remains the largest FDI auto maker in Vietnam. It is also one of the largest U.S. investors in the country, and its accumulated tax contribution to the state budget is nearly $250 million to date.
Ford expects to add up to 130 direct jobs with the expansion, and increase its overall direct and indirect employment in Vietnam to more than 4,500 – including its locally-based supply network. Ford Vietnam will provide skills training for the additional workforce as part of its ongoing programs to develop human resources and provide employees with career advancement.
“As one of the largest U.S. investors in Vietnam, this additional investment highlights Ford's ongoing contribution to the economic and social development of Haiduong province, as well as the overall development of Vietnam," explained Pease.
Ford plans on further expanding its network of 22 dealerships and outlets in 2008, and will continue to introduce enhanced sales and after-sales services and programs to ensure world-class customer service across the country.
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With about 245,000 employees and about 100 plants worldwide, the company’s core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford’s products, please visit www.ford.com.