Japanese trading house Mitsui & Co. has invested an undisclosed amount in the auto unit of Vietnam’s Tasco JSC, becoming a strategic shareholder in the company. The move comes as demand for vehicles in Vietnam is on the rise.
The initial investment was made on July 31st, although the value or size of the stake has not been revealed.
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Shares of Mitsui rose 5.1% on Friday, while Tasco added up to 3.6% on the heels of the announcement.
The collaboration will give Tasco Auto exposure to better resources such as higher operational and management standards and a network of partners. For Mitsui, it represents an opportunity to tap into a growing market of 100m people. While Mitsui invests in a range of sectors globally, transportation and automotive are key areas.
Tasco has a network of 90 showrooms that house global brands such as Volvo, Toyota, Mitsubishi and Nissan, and holds the largest market share in Vietnam. It has announced a complete knock-down assembly project in partnership with ten global automotive manufacturers. It is scheduled to start in 2024 and deliver passenger vehicles by 2025.
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