Honda starts auto operations in Vietnam

TOKYO -- Honda Motor Co. said Thursday it has started auto operations in Vietnam with the launch of the new Civic compact vehicle rolled out at its Vietnamese subsidiary's plant in the suburbs of Hanoi.

The new plant of Honda Vietnam Co., which has an annual production capacity of 10,000 units, will conduct engine assembly -- the first for an auto plant in Vietnam -- in addition to welding, painting and assembly of complete vehicles, it said.

By 2010, the cumulative investment for the auto operation is expected to reach about $60 million, including the plant and the new sales network.

The auto operation is to create fresh direct employment of some 250 at the Vietnamese subsidiary, with an expected total of more than 700 new jobs including dealers and parts suppliers, Honda said.