Volkswagen, Europe’s biggest carmaker, sees Vietnam as its strategic entry point into Southeast Asia, a region of nearly 600 million consumers now dominated by Toyota. VW expects to market it low-cost pick-up Amarok vehicle to compete against Toyota.
VW has concluded what many American corporations have yet to discover: Vietnam is an attractive production site because of the access it provides to the large Asean market and because of its low labor and production costs.
VW is said to be anticipating a production volume of 200,000 vehicles, largely because of its impressive growth in China. Production in Vietnam may circumvent high import duties on foreign-made cars, including VWs made in China.
More on Volkswagon’s plans for Vietnam