(Bloomberg) -- Mitsui & Co. has invested in the auto unit of Vietnam’s Tasco JSC as the Japanese trading house seeks to benefit from the growing demand for vehicles in the Southeast Asian nation.
Mitsui made an initial investment in Tasco Auto on July 31, according to a joint statement on Friday, which didn’t disclose the value or size of the stake. The deal makes Mitsui a strategic investor and will help Tasco’s long-term plans, they said.
Shares of Mitsui rose as much as 5.1% Friday, while Tasco added as much as 3.6%, its biggest intraday gain since July 9.
Tasco Auto, which has 90 showrooms featuring 14 brands including Ford, Nissan and Volvo, intends to launch a complete knock-down car project this year to assemble passenger vehicles with a global automaker, according to the statement. It didn’t reveal the name of the partner.
Vietnam’s passenger vehicle sales totaled 19,126 units in July, up 8.2% from the same month last year, the Vietnam Automobile Manufacturers’ Association said Tuesday. Shipments for the first seven months of 2024 totaled 102,293.
With a presence in over 60 countries and a portfolio covering a range of industries, Mitsui in March said it would also invest in a Vietnamese gas field.
(Updates with Mitsui and Tasco share prices in third paragraph.)
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