Asia Biz News - Asian Business News and Tenders
South Korea's Daewoo To Build Buses in Myanmar
September 5, 2018
Up until now, Myanmar has imported most of its buses. A new joint venture between the Myanmar government and South Korea’s Zyle Daewoo Commercial Vehicle is going to change all that.
The new joint venture will be owned 25% by South Korea based Zyle Daewoo, also known as Daewoo Bus. Myanmar Trad Center will own 75% of the business.
The JV will manufacture the small buses using critical auto-body parts shipped from abroad. Assembly will take place in factory space leased from the Myanmar government. When full operations are in place, maintenance and vehicle inspection services will also be added at the facility.
The business is expected to be up and running by 2020. It will also generate approximately 200 local jobs.
This is an important business victory for the Myanmar government, which has been working for some time to encourage major automakers from other parts of the world to construct vehicle manufacturing plants in the country. Suzuki Motor and Nissan Motor from Japan have set up operations there, as has the U.S.-based Ford Motor Company.
As Myanmar’s economy itself has expanded, so too have sales of new motor vehicles. The Association of Southeast Asian Nations Automotive Federation reports that for the six months ending June 2018, unit auto sales in Myanmar totaled 6,841 units. That is over twice the sales volume a year ago. Locally-manufactured autos contributed significantly to this boost in sales.
Copyright: North America Procurement Council Inc., PBC