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Viet Nam’s first professional automobile engine manufacturing and assembly plant inaugurated

VGP - Kim Long Motor Hue Joint Stock Company held the inauguration ceremony of its Yuchai engine manufacturing plant and rolled out the first Yuchai engine—marking a historic milestone in the company’s strategy to master core technologies in Viet Nam’s engine manufacturing industry.

December 05, 2025 4:49 PM GMT+7
Viet Nam’s first professional automobile engine manufacturing and assembly plant inaugurated - Ảnh 1.

Kim Long Motor Hue Joint Stock Company holds the inauguration ceremony of its Yuchai engine manufacturing plant and rolls out the first Yuchai engine, Hue City, December 5, 2025 - Photo: VGP

This is the first plant in Viet Nam equipped with a modern production line capable of manufacturing engines that meet international standards, serving not only the automotive industry but also other important industrial sectors.

The construction of the Yuchai engine manufacturing plant began on August 23, last year, immediately after the signing of a comprehensive strategic cooperation agreement between Kim Long Motor and Yuchai Group—one of the world's leading engine manufacturers.

Built on a 6.5-hectare site with an initial investment of US$260 million, the plant features a modern and fully integrated production line with up to 90 percent automation, enabling a diverse production capability for various engine types, including automotive engines, marine engines, agricultural machinery engines, and generators.

In the first phase, 2.5 hectares of the facility have been completed, focusing on manufacturing and assembling internal combustion (diesel) engines with a capacity of over 40,000 units per year—equivalent to producing one engine every three minutes.

The plant applies a range of cutting-edge technologies to optimize and precisely control every production step. All production lines operate on a Smart Factory platform with up to 90 percent digitalization, enabling 100 percent traceability of technical data for each engine model.

In the second phase, Kim Long Motor and Yuchai Group will continue investing in automated production lines to machine core engine components such as engine blocks, cylinder heads, crankshafts, camshafts, and connecting rods, as well as localizing structural components such as gasket sets and mounting brackets for systems like air distribution, power output, lubrication–cooling, and transmission.

Additionally, Kim Long Motor will put into operation a forging and pressing plant to produce engine blanks, thereby enhancing manufacturing capabilities and increasing engine localization rates to 80 percent.

The synchronized operation of the Yuchai engine manufacturing plant and supporting industrial facilities is expected to create a major breakthrough in Viet Nam's automotive manufacturing capacity.

This event marks a significant advancement for Viet Nam's automotive industry, as Kim Long Motor has successfully partnered to manufacture and assemble engines domestically.

The technological production lines at the Yuchai engine manufacturing plant were directly transferred and supervised during installation by Yuchai Group's foreign experts and experienced engineers, ensuring synchronization and optimal performance.

All production processes strictly adhere to international standards, providing a solid foundation for product quality. The engines produced at this plant will not only meet domestic demand but also be exported to ASEAN markets, South Korea, and the Middle East.

Viet Nam’s first professional automobile engine manufacturing and assembly plant inaugurated - Ảnh 2.

General Director of Kim Long Motor Dao Viet Anh addresses the ceremony, Hue City, December 5, 2025 - Photo: VGP

First two engines rolled out in Hue

At the event, the first two completed engines—Yuchai K11 and Yuchai Y24—were officially rolled out, marking an important step in the journey toward mastering technology and realizing the goal of bringing "Made in Viet Nam" automobiles further into the path of global integration.

In addition, the plant will continue expanding its product portfolio by initiating production of new engine models such as the Yuchai A07N, Yuchai S04, Yuchai S07, and Yuchai K12L to support Kim Long Motor's commercial vehicle manufacturing and assembly activities.

Addressing the ceremony, General Director of Kim Long Motor Dao Viet Anh shared, the synchronized operation of the Yuchai engine manufacturing plant, the large-scale stamping plant, and the network of supporting industrial factories will create a powerful breakthrough in Viet Nam's domestic industrial production and manufacturing capacity.

It will help transform the Kim Long Motor Hue Automotive Manufacturing and Assembly Industrial Park into one of Southeast Asia's leading automobile production centers, underlined Dao.

Once all plants in the complex become fully operational, they will provide strong momentum for local socio-economic development, create tens of thousands of stable jobs, and contribute to shaping a modern and dynamic industrial ecosystem in Hue City, he noted./.