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25. April 2007

VIETNAM: Kossan doing study on first Vietnam plant

Source: Daily "The Star", Kuala Lumpur; 25 Apr 2007

HO CHI MINH: Kossan Rubber Industries Bhd expects to
invest USD 2 million to USD 3 million in its first foray
into Vietnam by year-end.

The company is doing preliminary studies on setting up
a factory in the country for the production of its
technical rubber products.

“The business environment is encouraging and the
market is attractive.

“The incentives on tax and allowances support foreign
investments,” an industry source said on the sidelines
of the Vietnam Economic Forum yesterday.

He said the initial investment was small but Kossan
was expected to expand its operation once it
strengthened its position there.

“The technical rubber products can also be supplied to
auto players based in Vietnam,” he said.

He added that it would be cost effective for Kossan to
produce them in Vietnam as the production was labour intensive.

The source also said that Kossan had the advantage of
sending its skilled workers, who were trained in its
Malaysian operations, to Vietnam to speed up production.

Currently, Kossan employs close to 1,800 foreign
workers, of which 15% to 20% are from Vietnam.

(Syed Rashid Ali, Karachi, Pakistan)

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