KG Mobility to begin Vietnam KD production of Rexton and Musso

KG Mobility (KGM) is intensifying its Southeast Asia push by strengthening its Vietnam KD (knock-down) partnership with the FUTA Group. The company said KD production of its Rexton and Musso models is slated to begin later this year at a dedicated KD plant in Hue, Vietnam.

KGM Chairman Kwak Jae-sun visited FUTA Group’s Da Nang headquarters on June 11 for a briefing with FUTA Group chair Nguyen Huu Luong and other executives to discuss expanding cooperation and ramping up local production.

A day earlier, Kwak inspected the progress at KGM’s KD-only plant, Kimlong Motors Hue (KLMH), which is under construction in the Hue Industrial Zone. He checked manufacturing readiness and support needs as the facility nears completion.

When finished, the Hue plant is expected to assemble KD versions of KGM’s primary models, including the Rexton and Musso. KGM plans to supply the plant with body, painting, and assembly capabilities to apply its production expertise and deliver high-quality vehicles locally.

FUTA Group is a major Vietnamese company involved in automobile sales and passenger transportation, and Kimlong Motors operates as FUTA’s automotive subsidiary. The two firms established a local assembly cooperation through a license agreement in 2023.

KGM has been expanding its KD strategy to broaden global exports. The company signed a memorandum of understanding with an Indonesian KD supplier in May 2023, and this year it aims to extend KD operations to Bangladesh and Sri Lanka in a bid to diversify regional manufacturing and supply chains.

Why this matters beyond Korea for U.S. readers: Vietnam and other Southeast Asian markets are increasingly important for automotive supply chains and regional manufacturing, offering lower costs, proximity to large regional markets, and diversification away from a single hub. KD production arrangements can shorten time-to-market for new models, reduce import duties, and improve supply resilience for automakers and parts suppliers. As U.S. policy and industry observers emphasize supply-chain diversification and regional integration, KGM’s Vietnam push illustrates how Korean automakers are expanding in Southeast Asia, potentially influencing parts availability, pricing, and collaboration opportunities for U.S. manufacturers, suppliers, and investors.