The Mercedes-Benz plant in Ho Chi Minh City has had its land lease extended for five years from April 14 next year, Tuoi Tre has reported. This comes after months of uncertainty as the authorities struggled to find a way around regulations that required the plant to hand back the land when its 30 year lease expired next year.
The joint venture between Mercedes-Benz and local firm SAMCO had requested an extension of its land lease as far back as 2021, however, the request was never actioned due to the aforementioned regulatory challenges (the can was kicked down the road). This came to a head earlier this year, however, when the company said it was considering shutting down its operations in Vietnam altogether as a result of the lolly-gagging. Of note, it employs 800 people and contributes about US$800 million to the city’s coffers.
This final approval ended up coming after the Deputy Prime Minister, Tran Hong Ha, issued a decision directing the Ho Chi Minh City People’s Committee to tell the municipal Department of Planning and Investment to extend the firm’s licence.
See also: Vietnam’s Automotive Industry Overview