Japanese automaker Nissan said on Tuesday it sees 'tremendous opportunities' in Vietnam and will begin local production next year, despite the global economic crisis.

Nissan Vietnam Co Ltd will launch its first model assembled in the country by 2010, the automaker said in a press release.

Manufacturing will be carried out by Vietnam Motors Corp, an existing assembler, under the guidance of engineers from the parent company, the release said. Nissan Vietnam will be the distributor.

“Vietnam is a strategic market for Nissan with tremendous opportunities”, said Mr Shinya Hannya, Nissan's corporate vice president for Asian markets.

“The offering of locally assembled products will accelerate our business in Vietnam and lay the foundation for further growth.” The statement did not give details including the size of the investment, the factory location or which model will be assembled in Vietnam. Company officials could not immediately respond to questions from AFP.

Nissan Vietnam is a joint venture between Japan's Nissan Motor Co Ltd and Denmark's Kjaer Group A/S, an international distributor of vehicles.

The press release said Nissan Vietnam began operations in December and has begun importing and distributing Nissan vehicles, parts and accessories through its dealers.

Seventeen automotive producers or assemblers already have operations in Vietnam, including Ford of the United States, and Honda and Toyota, both from Japan. Their total vehicle sales in May were 8,761, down from 11,494 a year earlier, according to the Vietnam Automobile Manufacturers' Association.

France's Renault has a 44-per cent stake in Nissan Motor, Japan's number-three automaker.

In May the Japanese firm announced its first annual loss in almost a decade and said it expected to stay in the red this year because of slumping sales. The company is cutting 20,000 jobs to cope with the global crisis.

Source: AFP