KG Mobility, FUTA Group to advance Vietnam KD assembly for Rexton and Musso

KG Mobility (KGM) disclosed that it held a strategic meeting with FUTA Group’s automotive unit, Kim Long Motors (KLMH), in Da Nang, Vietnam, to review the KD production site and discuss detailed collaboration for local assembly ahead of a broader Vietnam market entry.

The meeting, held at FUTA Group’s headquarters, was attended by KGM Chairman Kwak Jae-sun and KGM business division head Kwon Gyo-won, along with Nguyen Huu Luan, FUTA Group chairman, and Mai Tien Phat, FUTA president. Kim Long Motors operates as FUTA’s automobile subsidiary, and the two groups had formed a local-assembly partnership through a license agreement in 2023.

Earlier, on the 10th, Kwak toured the nearly finished KLMH KD production facility at Hue Industrial Park in central Vietnam to inspect each stage of construction and confirm readiness and support measures. Once construction wraps up, KLMH plans to begin KD production of KGM’s core models, including the Rexton and Musso, in the second half of this year.

KGM Chairman Kwak described Vietnam as a high-potential market with strategic importance for expanding into Southeast Asia, noting its role as a gateway for future regional exports and new-model launches. He said the company aims to grow global sales beyond its established markets in Europe by expanding into emerging markets and increasing overseas launches of models like Musso.

For U.S. readers, the development illustrates how Korean automakers are diversifying their manufacturing footprints in Southeast Asia to secure supply chains and access fast-growing regional markets. Vietnam’s rising role as an automobile production hub could affect regional auto parts networks, pricing, and potential future export pathways that intersect with U.S. supply chains and vehicle sourcing.

KGM’s KD strategy involves assembling vehicles locally from kits to reduce import costs and tariffs, a model widely used to accelerate market entry and adapt cars to local demand. Hue Industrial Park’s role as a manufacturing site underscores Vietnam’s appeal to foreign carmakers seeking closer regional production capabilities and diversified regional operations.

This move fits into a broader pattern of Korean automakers expanding overseas production to hedge against market volatility, while Vietnam and neighboring markets emerge as increasingly important nodes in global auto supply chains. The outcome of the KGM-FUTA partnership could influence regional competition for mid-size SUVs like the Rexton and Musso, with potential implications for suppliers and partners connected to U.S. interests in the Indo-Pacific manufacturing ecosystem.