Toyota invests $283 million in Vietnam for electrified vehicle production

Toyota has received an amended investment policy decision from the People’s Committee of Phu Tho Province in northern Vietnam to expand its local operations. The company plans to invest an additional $283 million to include the assembly and production of electrified vehicles alongside its existing automobile and auto parts projects.

The expansion involves a 28.6-hectare project that includes the construction of a paint shop and a stamping plant, with construction slated to begin in May 2027. These facilities are expected to become operational by 2029, utilizing modern automation to enhance production capacity and energy efficiency. This move is intended to support the production of new completely knocked-down (CKD) models, including hybrid electric vehicles.

Osamu Hirata, general director of Toyota Vietnam, stated that increasing localization and maintaining the supplier network will help strengthen the country’s automotive supporting industry. The project is expected to create jobs, facilitate technology transfer, and increase tax revenue for the region.