Czech automobile manufacturer Škoda Auto, a subsidiary of the Volkswagen Group, has officially launched a new vehicle manufacturing facility in Vietnam, reinforcing its strategy for global expansion.
In partnership with Vietnam’s Thanh Cong Group, the new plant—located in the northern province of Quang Ninh—will assemble Škoda’s Slavia and Kushaq models for the local market.
The facility is equipped with a welding shop, a paint shop, and a final assembly line, representing a significant investment in local production capabilities. CEO Klaus Zellmer described the opening as a milestone in Škoda Auto’s efforts to tap into the rapidly growing automotive market in Vietnam.
To optimize production costs and ease market entry, Škoda Auto is utilizing completely knocked-down (CKD) kits, which are being imported from its manufacturing base in India. The facility’s strategic location in Quang Ninh—near Haiphong Port, one of Vietnam’s largest and most advanced seaports—allows for efficient logistics and quick delivery of CKD kits from Škoda’s Pune hub in India. This proximity also enhances operational synergies critical to Škoda’s success in Vietnam and surrounding markets.
The plant was developed as part of the Thanh Cong Viet Hu’ung Automotive and Supportive Industries Complex, which spans 36.5 hectares and carries a total investment of USD 500 million. Once fully operational, the facility is expected to produce up to 120,000 vehicles annually.
Škoda Auto has been actively expanding its international reach, identifying India as a key production and export hub. Vietnam and Kazakhstan have also emerged as new strategic markets in its global growth plan, as the company seeks to strengthen its footprint in emerging automotive regions.
(Source: Investment Monitor)
