Toyota Motor Vietnam will upgrade its Phu Tho manufacturing complex for electrified and CKD vehicles, with total registered capacity of approximately 52,000 cars per year.
Toyota Motor Vietnam has secured approval for an investment project worth more than US$283 million, approximately 9.3 billion baht, to expand vehicle and component manufacturing in northern Vietnam.
The People’s Committee of Phu Tho province approved an amendment to the project’s investment policy, while the provincial Department of Finance issued Toyota Vietnam its 12th amended investment registration certificate.
The revised project adds the assembly and manufacture of electrified vehicles to the company’s operations. Toyota has specifically confirmed preparations for locally assembled hybrid electric models but has not announced a battery-electric vehicle model for production at the site.
The registered production capacity of approximately 52,000 vehicles per year covers the wider manufacturing project. It should not be interpreted as an annual target of 52,000 fully electric vehicles.
New paint and stamping facilities planned
The project covers 28.6 hectares and includes vehicle assembly, automotive component production, warranty and repair services and the import of completely built-up vehicles.
Toyota Vietnam plans to begin constructing a new paint shop and stamping plant in May 2027. Both facilities are scheduled to begin operating in 2029.
The factories will use modern production technology and increased automation to improve manufacturing capacity, product quality and energy efficiency.
Once operational, the facilities will support the production of new completely knocked-down, or CKD, models. CKD production involves importing vehicle components and assembling them domestically rather than importing fully built cars.
Toyota said the investment would prepare its Vietnamese operation to manufacture new CKD vehicles, including hybrid electric models.
No individual vehicle model or production launch date has been announced.
Toyota seeks more locally produced components
Osamu Hirata, general director of Toyota Motor Vietnam, said maintaining the company’s supplier network and increasing the proportion of locally manufactured components would help strengthen Vietnam’s automotive supporting industries.
The company expects the expansion to create jobs, transfer manufacturing technology and generate additional tax revenue. It also aims to support Phu Tho’s development as an automotive production centre in northern Vietnam.
Toyota Vietnam broke ground on a new office complex at its Phu Tho headquarters in March 2026. Other facilities under development include a training centre, new offices and additional production lines.
The investment comes as Southeast Asian countries compete to attract automotive manufacturers and their supply chains during the industry’s transition towards lower-emission vehicles.
Vietnam has sought to expand domestic vehicle assembly and component production, while neighbouring Thailand and Indonesia continue to offer incentives for electric and hybrid vehicle projects.
More than 700,000 vehicles produced since 1995
Toyota Motor Vietnam received its first investment licence on September 5, 1995.
During its three decades of operations in the country, the company has produced more than 700,000 vehicles and recorded cumulative sales of one million units. Toyota said its service network had handled approximately 20 million customer visits.
The latest investment expands the company’s existing Phu Tho manufacturing operation rather than establishing an entirely separate electric vehicle factory.
Toyota has described the project as part of its long-term commitment to local manufacturing, supplier development and lower-emission vehicle production in Vietnam.
Related articles
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- Toyota pledges 55 billion baht for hybrid vehicle production in Thailand
- BYD opens first EV plant in Thailand
Sources
- Tuoi Tre News: Toyota invests additional US$283 million in Vietnam
- Vietnam.vn: Toyota adds hybrid vehicle production and assembly
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