Construction of a $260 million automotive engine manufacturing plant kicked off at the Chan May – Lang Co Economic Zone in central Thua Thien – Hue province on August 23. 

The plant is invested by Kim Long Motor Hue JSC and China’s automobile engine manufacturer Yuchai.

It covers 600 ha at Kim Long Motors Hue Industrial Park.

The project consists of two phases.

In the first phase, the plan will focus on manufacturing automotive engines and is scheduled to start operation from the second quarter of 2025. It will manufacture a diverse range of engines for automobiles, marine applications, generators, farming machinery, and construction equipment.

Initially, the plant will prioritize the production of internal combustion engines (Diesel), compressed natural gas (CNG) engines, and electric engines, with a capacity of over 12,000 units annually.

In the second phase, the factory will manufacture axles, gearboxes, and automotive drive trains.

Its products will serve both domestic consumption and exports.