HANOI: Vietnam's leading property developer, Vingroup, has begun construction of an automobile factory in a project worth between US$1 billion and $1.5 billion in the first phase.
The project is part of Vingroup's expansion plan into heavy industry, its vice-chairman was quoted as saying in a statement, following similar moves in other major sectors such as retail and healthcare.
Vingroup said on Saturday that it hoped to become a top car manufacturer in Southeast Asia, making 500,000 cars per year by 2025.
The company expects to produce between 100,000 and 200,000 vehicles per year in the first phase, including five-seat sedans, seven-seat SUVs and electric motorbikes.
A Vingroup spokeswoman told Reuters the factory would introduce the first electric motorbikes in 12 months and the first cars in 24 months.
Its construction brand Vinfast signed a memorandum to borrow $800 million from Credit Suisse to build the factory, located on a 335-hectare site in the northern port city of Haiphong, near Hanoi.
Vinfast plans to buy blueprints of car engines and main mechanical systems from top European and American designers.