In a country that’s more famous for the thousands of bicycles and scooters out on the streets, it seems strange to have one of the biggest Japanese auto makers setting up shop there to produce cars for the local consumers. Yet, that seems to be the plan of Nissan when they decided to put a Nissan auto factory in Vietnam.

We don’t exactly know the rationale behind Nissan’s decision except that we figure that it has something to do with cheaper taxes and/or cheaper labor.

Nevertheless, the plant will begin production of Nissan vehicles starting in 2010 and while no plans have been made on what specific brands will have ‘Made in Vietnam’ stamped on them, the auto factory is set to produce Nissan cars to the local market, meaning that exporting these cars to other countries has been ruled out of the question – for now, at least.

Perhaps the more pressing question is ‘Why Vietnam?’ After all, if you’ve been to the country, you’d know that cars are outnumbered there by their two-wheeled counterparts by a landslide. That of course, hasn’t deterred the folks at Nissan who seem to believe that Nissan’s potential in the country is limitless.

"Vietnam is a strategic market for Nissan with tremendous opportunities," said Shinya Hannya, Nissan corporate vice president of GOM planning, GOM marketing and sales (Asia and Oceania). "We are aiming for strengthening our market presence in Vietnam as well as in other fast-emerging countries."

Whatever the case, it’s still a bold move by Nissan, one in which they hope to capitalize on. Should they be successful, it won’t be long before other manufacturers follow suit.

Source: Vietnam News

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