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Wednesday, May 31, 2023

Samco to restructure with focus on automobile sector

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HCMC – State-owned Saigon Transportation Mechanical Corporation (Samco) has put forward a new development strategy until 2025 with a focus on automobile manufacturing and assembly and urban transport.

According to the office of the HCMC government on April 14, Samco has been asked to restructure its development strategy until 2025 with a vision toward 2030 to make it a pillar firm in the city.

The city government wants Samco to act as a pioneering firm in the industrial and automobile sectors, including automobile manufacturing and assembly, automobile supporting industries and automobile repairs and trading.

To do this, Samco has been required to review its development targets for the 2015-2019 period. In particular, the firm will review joint venture agreements and cooperation strategies with foreign partners in the automobile sector to clarify requirements on technology transfers, localization and assembly procedures it has received from partners.

Samco will also have to report on its 2015-2019 investment activities.

As for targets until 2025 with a vision toward 2030, as instructed by the city government, Samco will focus on the business areas where its strengths lie.

Investments in the automobile sector are not restricted to HCMC. They include transport projects and the establishment of manufacturing and assembly factories in different provinces to form a network of transport and industrial factories.

Samco has been assigned to prop up cooperation with long-term foreign partners such as Toyota, Mercedes and Mitsubishi to expand the automobile assembly facility in Cu Chi District.

Besides the parent company, Samco has 25 member companies operating in various sectors. These companies contributed some 40% of the corporation’s profits.

One of Samco’s latest projects is the new Mien Dong coach station in District 9. This project worth VND4 trillion is expected to be put into service this month.

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