By madmin 
As part of a prominent step that demonstrates China’s enhanced potential in the Southeast Asian automotive industry, China Yuchai International Limited has concluded a comprehensive strategic cooperation agreement with Kim Long Motor, which is Vietnam-based. This deal, valued at the sum of $28 million, allows Kim Long Motor to acquire technology licensing rights to several engine series, and in doing so, China made a big leap to export automotive technology abroad.
“The mutual cooperation project provides not only a licensed technology transfer but also the supply of components, related support, and services for the construction of an engine factory at Kim Long Motor’s site in Vietnam. Demonstrating this way of working in China, Yuchai wants to show that it is not sufficient only to bring technology but also to organize it in the right way and for a long time in the Vietnamese market.
These engines are designed to be used in trucks, buses, and other commercial vehicles of Vietnam as most of these models are yet to introduce a new passenger car model in the market sector. Kim Long Motor signed an exclusive license for the engine sales in the market for the next 15 years, alongside the rights to have the priority of other ASEAN countries as well as South Korea.
By this plan, the versatility of China Yuchai and its strength in the Asian market as a potential center of both manufacturing and importation of cars is perceived. In turn, Kim Long Motor is given access to new technology which strengthens the company’s position in the area. The agreement indicates the higher technological cooperation between China and its Southeast Asian neighbors, as China becomes more and more influential in the region.
China Yuchai is also actively participating in the construction process by supplying the required technical services for the equipment installation and commissioning. This hands-on approach ensures the smooth technology transfer and allows the Vietnamese factory to rapidly get up to its full production capacity.
The contract stipulates further that China Yuchai will also be the sole supplier of all engine assembly parts and service kits for the engines produced by Kim Long Motor in Vietnam. The extended supply relationship turns the two companies into a long-term partnership and guarantees that the engines produced in Vietnam remain consistent in their quality and performance.
The company Kim Long Motor, which is known for its 600-hectare Kim Long Motor Hue Automotive Manufacturing and Assembly Industrial Zone in the central city of Hue, is properly positioned to get the maximum benefit from the new technology. Kim Long Motor’s product range, which comprises such things as buses, minibusses, trucks, passenger cars, engines, axles, gearboxes, and chassis cutting, creates a firm ground for the incorporation of China Yuchai’s advanced engine technology.
During this period, the automotive industry in Vietnam is growing at a fast pace and is in the process of improving its technological capabilities. The transfer of the latest Chinese engine technology to Vietnam can play a significant role in enhancing the countries automotive manufacturing sector and give it a new status as the leader in the regional automotive supply chain.
The cooperation between China Yuchai and Kim Long Motor is generated by the global automotive industry, which is under significant transformation, as well. The statement about trends in the world automotive industry is that it is going through a transformation in the direction of more eco-friendly engine efficiency. The tighter and stricter emissions standards in the Southeast Asian countries, the more crucial is the need for the local manufacturers to have access to the advanced engine technology.
This is a very thoughtful action, and it can change the car sector in all of Southeast Asia, which will further increase the exchange of technology between regions and car production there. Further, it is a more clear indication of China’s practice as a technology vendor, especially when it comes to the sectors where it has created a big competitive edge.
Even in the southeast of Asia, where the vehicle environment is continually changing, pacts as this one between China Yuchai and Kim Long Motor will be the major forces that will carry the auto industry forward. The successful implementation of this alliance may encourage other Chinese and Southeast Asian firms to share knowledge, thus helping the local economic progress of the region.