The consortium will execute the contract package in four years, using ultra-supercritical technology.

While car prices in 2020 were significantly lower compared to the pre-Covid-19 period, customers had become more cautious in spending, leading to an 8% year-on-year drop in car sales to 296,634 units.

The low sale volume was due to difficult economic conditions that forced customers to tighten spending.

The plant, considered one of the most important projects of Hyundai, is invested with an estimated VND3.2 trillion (US$137.44 million) and able to produce 100,000 vehicles per year.

All have suspended operation during the 15-day nationwide social distancing period, while resumption of production would depend on the actual pandemic situation.

The year of 2019 was a difficult period for Vietnam’s auto market, but also marked positive performances of most local car producers.

Vietnam’s automotive industry is lagging around 30 years behind neighboring countries such as Thailand, Indonesia and Malaysia.

Samsung would continue to increase investment in R&D and supporting industries in Vietnam and seeks more support from the Vietnamese government, said Lee Jae-young, vice chairman of Samsung.