KUALA LUMPUR (Nov 10): Tan Chong Motor Holdings Bhd (TCMH) announced today that its wholly-owned subsidiary, Tan Chong Motorcycles (Labuan) Pte Ltd has secured a Certificate of Investment to set up TC Motorcycles in Vietnam.
The company received the Certificate from Ho Chi Minh City People's Committee on Nov 3, 2014 confirming "the establishment of its wholly-owned subsidiary named TC Motorcycles (Vietnam) Company Limited (“TC Motorcycles Vietnam”)".
Tan Chong will import motocycles and components for sale to registered dealers in Vietnam and also reserve right to export and distribute motorcycle or its parts in line with the project, "Laws of Vietnam".
The project's duration is 20 years.
"The total investment capital for the project is US$1million of which US$500,000 is capital contribution as charter capital from Tan Chong Motorcycles (Labuan) Pte Ltd," it said in its announcement to Bursa Malaysia.
The capital will be used to settup showrooms and also for working capital.
"The total investment capital including the charter capital will be funded via internally generated funds," it added in the announcement.
This project, said the company, will "further establish the group's foothold in the IndoChina market".
TCMH dropped 0.7% to close at RM 4.20 with barely 5,700 shares traded.