The Korea Automotive Research Institute is partnering with Vietnam's state-owned enterprise, VEAM MOTOR, to collaborate on automotive manufacturing and production technologies. Both parties agreed to jointly pursue improvements in production technology, the transition to smart factories, technical training, and the identification of business opportunities in the commercial vehicle sector, with the aim of strengthening the manufacturing capabilities of Vietnam's automotive industry and expanding cooperation in related industries.

The Korea Automotive Research Institute announced on the 25th that President Jin Jong-wook and VEAM MOTOR CEO Nguyen Van Hai signed a Memorandum of Understanding (MOU) for cooperation in automobile manufacturing and production technology at the VEAM headquarters in Hanoi, Vietnam on the 24th (local time).

This agreement carries weight in that it establishes a framework for cooperation to respond to changes in the production field, going beyond simple technology exchange. As the automotive industry is being restructured around automation and digital transformation, both parties have focused the scope of their cooperation on increasing manufacturing process efficiency and upgrading production systems.

Areas of cooperation include improving automotive production technology, transitioning to smart factories, technical training and workforce development, and identifying business opportunities in the commercial and special-purpose vehicle sectors. Production technology improvement aims to enhance the quality and efficiency of manufacturing processes, while the transition to a smart factory is interpreted as the integration of digital technology into factory operations. Technical training and workforce development can be viewed as laying the foundation for on-site application.

VEAM is a state-owned enterprise under Vietnam's Ministry of Industry and Trade that oversees the automobile, engine, agricultural machinery, and machinery industries. Among its subsidiaries, VEAM MOTOR is responsible for automotive-related businesses, including the manufacturing, assembly, and sales of finished vehicles and parts; therefore, this agreement is highly likely to lead to cooperation directly connected to Vietnam's automobile production sites.

The Korea Automotive Industry Association (KAIA) plans to expand technological cooperation in the manufacturing and production sectors in line with the Vietnamese government's industrial policies, based on its collaboration with VEAM MOTOR. President Jin Jong-wook expressed his expectation that this partnership will lead to enhanced manufacturing competitiveness in Vietnam's automotive industry and strengthen the foundation for technological cooperation between the two organizations. He further stated that KAIA will broaden cooperation to respond to changes in the manufacturing environment, such as smart factories and digital transformation, and contribute to creating opportunities for domestic companies to collaborate with the Vietnamese industry.