HANOI -- Ford Motor Co. said on Tuesday it is investing $82 million to expand its plant in northern Vietnam to boost production capacity.
Ford Vietnam, established in 1995, said the expanded factory would boost the U.S. automaker's annual production capacity in Vietnam to 40,000 vehicles from current volume of 14,000 units.
The company reported it sold 32,175 vehicles in Vietnam in 2019, up 31 percent from a year earlier.
The expansion, which will bring the company's total investments in Vietnam to more than $200 million, will come in two stages over a two-year period starting this year.
“With this additional investment, Ford Motor Company is expressing our continued confidence in the future of Vietnam’s auto industry, as well as underscoring our commitment to the market and to meeting the increasing demand for Ford vehicles in Vietnam,” said Andreá Cavallaro, operations director for Ford’s International Markets Group.
Deputy Trade Minister Do Than Hai said he expected the expansion would reduce Vietnam's reliance on imported vehicles and therefore lower the country's trade deficit.
The construction will expand the facility across an additional 15 acres of land, bringing the total area to about 56 acres.
Automotive News contributed to this report.