Toyota Adds $283.7M Investment in Vietnam for Electrified Vehicles

Toyota Adds $283.7 Million Investment in Vietnam for Electrified Vehicle Production

Latest Update September 2, 2026

Toyota Motor Vietnam is expanding and modernizing its manufacturing operations in Phu Tho, Vietnam, with an additional investment of US$283.7 million to support the assembly and production of automobiles and auto parts, including electrified vehicles. The project will incorporate modern technologies and increased automation, with annual production and assembly capacity of approximately 52,000 vehicles, laying the foundation for new CKD vehicle production in Vietnam.

Vietnam, August 28, 2026 — The Phu Tho Provincial People's Committee presented Toyota Motor Vietnam with an Adjusted Investment Policy Decision and the company's 12th amended Investment Registration Certificate. The revised project expands Toyota's existing automobile and auto-parts manufacturing operations to include the assembly and production of electrified vehicles.

Additional US$283.7 Million Investment

Under the revised investment plan, Toyota Vietnam has registered an additional US$283.7 million, bringing total project investment to more than US$373 million.

The project covers more than 28.6 hectares and has an annual production and assembly capacity of approximately 52,000 vehicles.

The revised scope includes the assembly and production of automobiles and auto parts, including electrified vehicles, as well as the development of a paint shop and stamping workshop.

Modernizing Production with Automation

Toyota Vietnam plans to begin construction of its Paint Shop and Stamping Workshop in May 2027, with both facilities expected to begin operations in 2029.

The facilities will adopt modern technologies and increased automation to improve production capacity, product quality and energy efficiency.

The upgraded facilities are also expected to provide the manufacturing foundation for new Completely Knocked Down (CKD) vehicle models in Vietnam, including electrified vehicles.

Preparing for Local Hybrid Vehicle Production

The addition of electrified vehicle production represents an important step for Toyota Vietnam, as Toyota's hybrid models currently sold in Vietnam are fully imported. The new project creates a path toward local production of electrified vehicles in the country.

Toyota Motor Asia previously announced in September 2025 that Toyota Vietnam planned to invest more than US$360 million to modernize its head office and plant and begin production of Hybrid Electric Vehicles in Vietnam.

The US$283.7 million announced under the latest project adjustment should therefore be understood as additional registered investment for the revised project, rather than the company's entire modernization investment program.

Strengthening Local Supply Chain and Talent

In addition to production modernization, Phu Tho authorities have called on Toyota Vietnam to strengthen its network of local component suppliers, increase vehicle localization and invest in training Vietnamese employees for key future management positions.

Toyota Vietnam has operated in Vietnam for more than 30 years. Toyota Motor Asia said in 2025 that the company had 61 suppliers, including 13 Vietnamese companies, and more than 1,000 localized parts.

Vietnam Strengthens Its Role in Electrified Vehicle Manufacturing

The investment expansion reflects Toyota's efforts to upgrade its Vietnamese manufacturing base for electrification, automation and CKD manufacturing, while continuing to develop local suppliers and manufacturing talent.

The move also strengthens Vietnam's potential role in the regional automotive manufacturing supply chain as demand for electrified vehicles continues to reshape the industry.