Vietnam Company, in which the Japanese conglomerate Toyota Motor Corp holds a 70% stake, earned a profit of 4.66 trillion dong ($208.7 million) in 2015, rising 9% from a year earlier, thanks to the fast-growing automobile market in the Southeast Asian country.
The firm sold 52,428 cars in Vietnam last year, grabbing a market share of 25.5%. This sales volume increased 28.66% year-on-year, according to a prospectus released by state-owned Vietnam Engine & Agricultural Machinery Corporation (VEAM).
With the sales, Toyota Vietnam generated a turnover of $1.52 billion in 2015, representing an increase of 26.9% year-on-year.
Toyota in Vietnam is the second-largest car producer and seller in the Southeast Asian country, only after Truong Hai Auto Corporation (Thaco), in which Singapore-based Jardine Cycle & Carriage holds a stake of nearly 30%.
Toyota Vietnam was set up in 1995 with an initial investment of $89.6 million. Its registered capital now stands at $49.14 million, in which Toyota takes a 70% stake, VEAM 20% and Singapore’s KUO 10%.
The firm has sold a total of 305,800 cars during its 20 years of operations in Vietnam, according to newswire VnExpress.
Toyota has repeatedly threatened to move its production facilities out of Vietnam as the Southeast Asian country is sluggish in developing its supporting industries and the import duty on cars from ASEAN
countries will be trimmed to zero in 2018.
Le Thuy Trung, an official from the Ministry of Planning and Investment, said at a workshop held by BizLIVE
last week that foreign-invested car producers would not leave Vietnam in the short term given hefty profits they make here.