Mitsui & Co. has taken a strategic step into Vietnam’s burgeoning automotive market by investing in Tasco Auto, a significant player in the country’s car industry. This move aligns with Mitsui’s broader strategy to capitalize on the growing demand for vehicles in Southeast Asia.
The Japanese trading giant made its initial investment in Tasco Auto on July 31, as confirmed in a joint statement released on Friday. While the details of the transaction, including the value and size of the stake, were not disclosed, the statement emphasized that Mitsui’s involvement positions it as a strategic investor in Tasco Auto, reinforcing the latter’s long-term growth ambitions.
Following the announcement, shares of Mitsui surged by as much as 5.1% on Friday, while Tasco’s stock rose by 3.6%, marking its most significant intraday gain since July 9. Tasco Auto, which operates 90 showrooms across Vietnam and represents 14 major automotive brands such as Ford, Nissan, and Volvo, is gearing up to launch a complete knockdown (CKD) car project later this year. This initiative will see the assembly of passenger cars in partnership with a global automaker, though the specific partner was not named in the statement.
Vietnam’s automotive market has been experiencing robust growth, with passenger car sales reaching 19,126 units in July, an 8.2% increase compared to the same month last year, according to the Vietnam Automobile Manufacturers Association. From January to July 2024, total vehicle deliveries amounted to 102,293 units.
Mitsui’s investment in Tasco Auto is part of its broader engagement with Vietnam, which also includes plans announced in March to invest in a Vietnamese gas field. This move highlights Mitsui’s confidence in Vietnam’s economic potential and its strategic importance within Southeast Asia.
In the broader context of Vietnam’s automotive market, Tasco Auto is part of a competitive landscape that includes other major players such as Thaco, the largest automotive manufacturer in Vietnam, and VinFast, a rapidly growing local automaker that has been making headlines with its electric vehicle ambitions. Thaco, which assembles and distributes vehicles for brands like Kia, Mazda, and Peugeot, dominates the local market, while VinFast, a subsidiary of Vingroup, has quickly established itself as a key player, with plans to expand its footprint globally. Mitsui’s investment in Tasco Auto could help bolster Tasco’s position in this competitive market, potentially paving the way for future collaborations and innovations in Vietnam’s automotive industry.
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Source: Vietnam Insider