Toyota, the Japanese automaker, is advancing plans to build a new production line in Phu Tho Province, Vietnam, and prepare for the production of new completely knocked down (CKD) models, including hybrids. The company has obtained an Investment Registration Certificate and completed the adjustment of its investment policy, paving the way for the modernization of the plant.
Toyota Vietnam announced that it had obtained a decision adjusting its investment policy and an amended Investment Registration Certificate for a business in Phu Tho Province involving the assembly and manufacture of automobiles and automotive parts, the import of completed vehicles, and other activities. This advances plans to add the assembly and production of all types of automobiles and parts, including electric vehicles.
Total investment in the project exceeds $283 million. The site covers 28.6 hectares, and registered production and assembly capacity is expected to be approximately 52,000 vehicles per year. The company also plans to manufacture vehicle bodies and other parts. Construction of the paint and stamping plants will begin in May 2027, with operations targeted to start in 2029. This will establish a production base in Vietnam for new CKD models.
A company representative said the milestone was important as Toyota advances preparations to produce new CKD models, including hybrids. Hybrid vehicles are gaining popularity in the Vietnamese market, led by the Corolla Cross HEV.
According to data from the Vietnam Automobile Manufacturers' Association (VAMA), Toyota sold 8,314 hybrid vehicles in the first 7 months of 2026, accounting for 66% of the market. The Corolla Cross HEV, Innova Cross HEV and Yaris Cross were identified as particularly strong-selling models.