On August 23, the China (Guangxi) - Vietnam (Ho Chi Minh City) Economic and Trade Cooperation Matching Meeting was held in Ho Chi Minh City, Vietnam, to explore how to transform the cooperation potential between enterprises in the two regions into tangible results. Attendees included Liu Ning, Secretary of the Guangxi Zhuang Autonomous Region Committee, Wu Van Huan, Vice Chairman of the Ho Chi Minh City People's Committee, and Wei Huaxiang, Consul General of China in Ho Chi Minh City. During the meeting, Guangxi Yuchai Machinery Co., Ltd. (hereinafter referred to as "Yuchai") signed a comprehensive strategic cooperation agreement with Golden Dragon Motors Hue Co., Ltd. (hereinafter referred to as "Vietnam Golden Dragon Motors"), a subsidiary of the FUTA Group, to jointly launch a $260 million engine plant project. The signing and groundbreaking ceremony was attended by leaders and industry guests including Le Thanh Luu, Secretary of the Thua Thien-Hue Provincial Party Committee, Ding Yuming, Chairman of the Provincial People's Council, Nguyen Huu Luong, Chairman of the FUTA Group Board, Vu Phi Hai, General Manager of Vietnam Golden Dragon Motors, Li Hanyang, Chairman of Yuchai, and Wu Qiwei, President of Yuchai.
The construction of the engine plant will be carried out in two phases, with the first phase expected to start production in the second quarter of 2025. The plant will feature globally leading and highly automated engine assembly production lines, primarily producing Yuchai's full range of diesel and natural gas engines. These engines will cover applications in commercial vehicles, construction machinery, agricultural machinery, ships, and power generation, with an annual production capacity expected to exceed 12,000 units. The new plant will significantly enhance the level of Vietnam's automotive industry.
The engines produced by the new plant will not only meet the needs of Vietnam Golden Dragon Motors for vehicle installation but will also serve the domestic market in Vietnam and target exports to ASEAN and South Korea, helping both Vietnam Golden Dragon Motors and Yuchai to more deeply engage in global supply chain competition. During the signing ceremony, Vu Phi Hai, General Manager of Vietnam Golden Dragon Motors, and Wu Qiwei, President of Yuchai, signed the cooperation agreement, marking the beginning of a new phase of collaboration.
Li Hanyang stated that having shared business philosophies and visions, Yuchai will leverage its advantages in R&D technology, production, assembly, and supply chain to advance the construction of the Vietnam engine plant, aiming to make it a world-class facility and achieve deep cooperation, mutual growth, and win-win development with Vietnam Golden Dragon Motors.
On the same day, Vietnam Golden Dragon Motors and Yuchai officially launched the new Golden Dragon 99 series sleeper bus equipped with the Yuchai K11 engine, delivering the first 60 of 600 contracted units to FUTA Bus Lines, Ha Shan Company, and New Development Company. The Yuchai K11 engine, tested over several months under various terrains and steep road conditions in Vietnam, demonstrated a fuel consumption efficiency improvement of 5-6 liters per 100 kilometers compared to existing engines on the market, significantly reducing operating costs for passenger transport and providing the best engine solution for the vehicle.
FUTA Group is a large Vietnamese enterprise group engaged in passenger transport, freight, vehicle assembly, and real estate, while its subsidiary, Vietnam Golden Dragon Motors, focuses on automobile manufacturing, assembly, and sales.
