Czech carmaker Škoda expands in Southeast Asia with new Vietnam plant

Czech carmaker Škoda Auto is poised to enter the Vietnamese market with a construction of a new plant in the Quang Ninh province. Czech Prime Minister Petr Fiala visited the site of the new plant this weekend during his trip through Asia.

Fiala met with local officials and executives from Thanh Cong Motor, who are partnering with Škoda Auto in the Vietnamese market.

"In many countries, Škoda is the main thing that people associate with the Czech Republic, so it is an informal ambassador of our industry and our country to the world," the Prime Minister told journalists this weekend.

"It is, therefore, great that [Škoda] is strengthening its presence in Asia and entering this highly dynamic and extremely promising market," he added.

Later this year, Škoda will import some of its European models for sale on the Vietnamese market. The new plant will assemble Škoda models Kushaq and Slavia as of 2024, with parts provided by Škoda's production plant in India. 

Škoda will enter the market later this year with its Kodiaq and Karoq models, with Superb and Octavia vehicles joining them 2024. The fully-electric Enyaq iV will also debut Vietnamese market at a later date. Each of these models will arrive fully-assembled from Europe.

"Škoda Auto will be entering the Vietnamese market this year, with its first dealerships opening in July, and we will also start selling the first cars at that date," Škoda Auto Member of the Board of Directors Martin Jahn told journalists at the new plant.

"First, we will import Kodiaq and Karoq cars from the Czech Republic and at the end of next year, we will launch the production of Indian models Slavia and Kushaq."

Jahn added that the first Škoda dealerships would be located in Hanoi, Da Nang and Ho Chi Minh City, and that a total of 30 dealerships would open over the next few years. He also stated that Škoda aims to sell up to 40,000 vehicles per year in Vietnam.

Škoda's new production facility in Vietnam will employ a total of more than 700 people. In a press release, the company stated that the construction of the new plant is an important step as it seeks expansion in foreign markets.