Tan Chong no longer import, distribute Nissan cars in Vietnam

Tan Chong Motor Holdings has announced that, from September 10, 2019 it will lose the rights to import and distribute Nissan vehicles and parts in Vietnam.

In a recent exchange filing, Tan Chong said Nissan Motor Co issued a notice of termination of its joint venture (JV) agreement with Tan Chong’s wholly-owned subsidiary, ETCM (V), without stating a reason.

According to The Edge Markets, the agreement was originally signed in 2010 after ETCM bought from Denmark-based Kjaer Group A/S its 74% charter capital contribution in the JV company, Nissan Vietnam Co Ltd, for US$7.4 million then.

The JV firm, in which Nissan holds the remaining 26% stake, has the exclusive right to import and distribute or re-sell Nissan vehicles and their spare parts in Vietnam, for 30 years starting from November 2008.

Tan Chong said the termination of the agreement will have “no significant financial and operational impact on the group for the current financial year.” It said ETCM “remains open to further discussion with Nissan to explore alternative solutions and business opportunities for mutual benefits in Vietnam.”

Meanwhile, Tan Chong has formed a new JV company in New York that will allow it to develop new distribution channels in the United States, Canada and other countries where it has a presence in. The move will also allow the company to source for new products/technologies which can be commercially developed for retail and distribution in Southeast Asia.

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