KG Mobility (KGM) announced on Friday that it is accelerating its expansion into the Southeast Asian market by strengthening its partnership with its Vietnamese knock-down (KD) production partner.
The South Korean automaker stated that Chairman Kwak Jae-sun visited Vietnam this week to review production preparations and discuss expanding collaboration with local partner FUTA Group ahead of the company’s official market entry.
During his visit, Chairman Kwak met with FUTA Group Chairman Nguyen Huu Luan at the group’s headquarters in Da Nang to discuss strategies for deepening their business cooperation.
Prior to this meeting, the KGM chairman inspected the Kim Long Motor Hue (KLMH) plant, a dedicated KD production facility located in the Hue Industrial Complex, which is nearing its final stages of completion.
The plant is slated to commence assembly of KGM’s key models, including the Rexton SUV and Musso pickup truck, in the second half of this year.
KGM is planning to supply the production equipment for the body, painting, and assembly processes, enabling the factory to produce vehicles locally utilizing the company’s advanced manufacturing technology and stringent quality control systems.
FUTA Group’s business operations in Vietnam range from automobile distribution to passenger transportation, with Kim Long Motor serving as its automotive subsidiary. The two companies initially established their partnership in 2023 through a licensing agreement focused on local vehicle assembly.
KGM has been actively expanding its KD business as a key component of its broader strategy to boost its global export volumes.
The automaker signed a heads of agreement last year to supply KD vehicles to Indonesia and has plans to further extend its KD operations into emerging markets such as Bangladesh and Sri Lanka this year.
“Vietnam represents a market characterized by rapidly growing demand for automobiles and serves as a strategic base for expanding our exports across Southeast Asia,” stated Chairman Kwak. He further added that the company will continue to focus on increasing global sales through strategic expansion into new overseas markets and broader international launches of its vehicle models.
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