Tan Chong to set up IT business in Vietnam

Edaran Tan Chong Motor's latest Nissan 4S Centre opens in Glenmarie, Shah Alam

KUALA LUMPUR: Tan Chong Motor Holdings Bhd (TCMH) plans to set up an operation to make software products as well as to provide information technology (IT) solutions and services in Hanoi, Vietnam.

In a filing with Bursa Malaysia, the Nissan and Renault vehicle distributor said its unit TCMSC (Labuan) Pte Ltd had established a wholly-owned subsidiary, TC Systems (Vietnam) Company Ltd, for the purpose.

The project was approved for implementation by Hanoi City People’s Committee, Authority for Planning and Investment, Vietnam, on April 5.

The company, which already has a Nissan vehicle distribution business in Vietnam, said the project would take 30 years from the issuance date of the investment registration certificate.

TCMH said the total investment capital for the project is US$5mil (RM19.6mil), of which US$0.8mil (RM3.1mil) is capital contribution as charter capital, from TCMSC (Labuan) Pte Ltd.

“The project is set to develop IT capabilities and to tap into IT talents in Vietnam,” it said.

TCMH said the project would have no material effect on the group’s earnings, net assets and gearing for the financial year ending Dec 31, 2016.