Daikin Group decided to invest US$93.6 million in the building of the factory on an area of 20,000sq.m at Thang Long II IZ in Hung Yen province. The plant, with an annual capacity of around 500,000 air conditioning units is expected to be operational in 2018. The capacity will double to roughly 1 million units by 2020, depending on demand.
It plans to employ around 500 staff for the first year and increase to 1,500 when the plant operates at full capacity.
Vietnam has a population of about 93 million, ranking third among Association of Southeast Asian Nations members behind Indonesia and the Philippines. The Vietnamese market for household air conditioners is one of the biggest in that region, estimated at 2 million units annually. Vietnam is a potential market for Daikin as sales of air conditioners in the market are growing at an average of over 30% per year.