In August, Hue Golden Dragon Automobile Joint Stock Company held a groundbreaking ceremony for the Golden Dragon Automobile Engine Manufacturing Plant in the Chan May – Lang Co Economic Zone of Thua Thien Hue Province, Vietnam. This marks the first time Vietnam has introduced and applied internationally leading automobile engine production technology, representing a significant step towards modernizing Vietnam’s automobile industry.
Strategic Cooperation and Technology Introduction
Hue Golden Dragon Automobile Joint Stock Company signed a comprehensive strategic cooperation agreement with China’s Yuchai Machinery Group Co., Ltd. This agreement lays a solid foundation for cooperation in engine manufacturing between the two companies and brings important technological advancements to Vietnam’s automobile industry. Through this partnership, Golden Dragon will produce modern automobile engines and other industrial engines domestically, significantly improving the localization rate.
Factory Planning and Future Development
The total investment for the Hue Golden Dragon Engine Manufacturing Plant is $260 million, and the project will be carried out in two phases. The first phase will focus on the production of engines for the automobile industry, with production expected to begin in the second quarter of 2025. The automation level of the plant will reach 90%. The plant’s products will cover engines for automobiles, ships, power generation equipment, agricultural production, and industrial machinery. The annual production capacity for the first phase is expected to exceed 12,000 units, with plans to gradually increase capacity in the coming years.
The second phase will focus on producing key components such as automobile bridges, transmissions, and drive systems. These products will not only meet domestic demand but will also target markets in the ASEAN region and South Korea, helping Vietnam gradually integrate into the global automobile supply chain.
Economic and Social Benefits of the Plant
The construction of the Hue Golden Dragon Engine Manufacturing Plant not only achieves technological breakthroughs but also brings positive impacts on the local economy and society. The plant’s production is expected to increase local employment opportunities and generate significant tax revenue for the local government. Since the factory began operations in February 2024, it has produced nearly 300 various types of buses, contributing over 4,080 billion VND in tax revenue and creating 1,800 jobs, with 70% of the workforce coming from Thua Thien Hue Province.
Future Outlook for Vietnam’s Automobile Industry
The launch of this project holds significant strategic importance for the development of Vietnam’s automobile industry. Li Guoyue, Deputy General Manager of Hue Golden Dragon Automobile Joint Stock Company, stated that the engine manufacturing plant plays a “heart” role in promoting the development of Vietnam’s domestic automobile brands. The plant not only provides efficient, energy-saving engines but also helps boost Vietnam’s commercial vehicle market and gradually opens the door to export markets.
Thua Thien Hue Province’s Deputy Governor, Phan Gui Phang, emphasized that the successful implementation of this project will attract more related enterprises to invest in Hue, further promoting local economic restructuring. Additionally, the strategic cooperation between Golden Dragon and Yuchai serves as a new bridge for economic cooperation between Vietnam and China.
Launch of the Golden Dragon 99 Sleeper Bus
Additionally, Hue Golden Dragon Automobile unveiled the Golden Dragon 99 new sleeper bus, equipped with Yuchai’s K11 engine, known for its fuel efficiency and reliability. The model is available in three versions: luxury, premium, and standard, with prices of 3.598 billion VND, 3.678 billion VND, and 4 billion VND, respectively. The first batch of 60 buses has been delivered to three major customers: FUTA Bus Lines, Heshan Company, and New Prosperity Company.
Summary Points:
- The cooperation between Golden Dragon and Yuchai has brought advanced technology to Vietnam’s automobile industry, driving modernization.
- The engine manufacturing plant not only meets domestic demand but also helps Vietnam integrate into the global supply chain.
- Since the project’s inception, it has significantly increased local employment and promoted economic growth.
- Hue Golden Dragon’s brand influence is on the rise, with plans to expand its presence in international markets.
- The launch of the Golden Dragon 99 sleeper bus has further enriched Vietnam’s domestic automobile product line, showcasing the potential of the country’s automobile manufacturing industry.
