Image of the 100,000m2 Mercedes-Benz factory land in Go Vap facing problems with extension

Dự án nhà máy Mercedes-Benz 1.127 tỉ đồng ở Gò Vấp gặp vướng khi gia hạn đầu tư - Ảnh 1. — Main gate of Mercedes-Benz Vietnam factory on Quang Trung street - Photo: PHUONG NHI

At a working session with General Secretary and President To Lam (August 17), Chairman of the Ho Chi Minh City People's Committee Phan Van Mai talked about the joint venture between Mercedes-Benz Group AG (MBG AG) and Saigon Transport Mechanical Corporation (Samco) regarding the above factory project.

Accordingly, this project will expire after 30 years of joint venture in 2025. MBG AG Company requested to extend for another 5 years, but due to regulations, when the joint venture expires, the land must be reclaimed and rearranged. Currently, Ho Chi Minh City is still struggling to resolve this issue.

In the conclusion, General Secretary and President To Lam said it was absurd that the issue of extending the project of the above joint venture had not been resolved.

According to General Secretary and President To Lam, localities are eager to have automobile projects because on average, an automobile project contributes at least 5,000 billion VND/year to the local budget.

With such difficulties, General Secretary and President To Lam said that he will continue to research with relevant agencies to have appropriate policies to resolve them.

According to research, the Mercedes-Benz Vietnam automobile manufacturing and assembly plant on Quang Trung Street (Ward 8, Go Vap District, Ho Chi Minh City) was established in 1996 and officially put into operation in 1997 with a capacity of 60 vehicles/month (content of the report proposing the granting of an environmental license for the Mercedes-Benz Vietnam automobile assembly plant project in 2022 posted on the website of the Department of Natural Resources and Environment of Ho Chi Minh City - PV).

By 2005, the facility increased its capacity to 12,000 vehicles/year. In 2013, the facility added an electrostatic dipping workshop with a capacity of 5,285 vehicles/year. In 2014, the facility added a truck assembly workshop with a capacity of 720 products/year, but this workshop has now ceased operations.

This is an automobile manufacturing plant project with a total investment of 1,127 billion VND. The main activity here is assembling trucks and passenger cars. The total number of employees at the facility is 600 people.

According to Prime Minister's Decision No. 844 in 1995, Decision No. 871 in 1999 and land lease contract No. 727 in 1996 signed with Ho Chi Minh City People's Committee, the facility operates on a land area of over 104,000m2 ^.