KUALA LUMPUR: TAN CHONG MOTOR HOLDINGS BHD  has received Vietnam's go-ahead to set up a subsidiary that will manufacture and assemble buses, trucks and cars. The company's total investment is expected to be US$15 million (RM50.9 million).
The company said earlier today, its unit TCIE (Labuan) Pty Ltd had received a certificate of investment from Danang Industrial and Export Processing Zones Authority to set up a wholly owned subsidiary, TCIE Vietnam Pte Ltd.
TCIE Vietnam will manufacture and assemble buses, trucks and passenger cars. It will also undertake to sell and provide after-sales services for the vehicles.
"The total investment capital for the investment project is US$15 million, of which US$6 million will be capital contribution [charter capital] from TCIE (Labuan) Pty Ltd. The charter capital of US$6 million shall be contributed within 24 months from the date of the issuance of the investment certificate," it said.
TCIE Vietnam has committed to purchase/lease 129,500 sq m of land in the expanded Hoa Khanh Industrial Zone, Danang City for US$3.04 million to carry out the project.
"The establishment of TCIE Vietnam is part of a long-term plan of the group to gain a regional footprint in markets with low auto penetration, abundant labour and low costs. TCIE Vietnam is expected to commence business operation in the third quarter of 2011," it said.