Vietnamese bus manufacturer Kim Long Motor will establish a production facility in Thailand, deepening industrial ties between the countries as the company seeks to build an ASEAN production base beyond its home market.

Kim Long has been exporting buses to Thailand but will shift to making them there, aiming for more than 50% local content, the company said recently, as Vietnam and Thailand marked the 50th anniversary of diplomatic relations. It did not disclose the planned location, investment size or production capacity of the Thai operation.

The move highlights the importance of Thailand's much larger auto industry, despite Vietnam's efforts to develop its own sector through companies such as VinFast, the Nasdaq-listed electric vehicle maker that has emerged as the country's leading car brand, and TMT Motors, a commercial vehicle producer that recently launched one of Vietnam's cheapest EVs.

Kim Long already exports to South Korea and said Thailand is part of the company's "larger journey" as it plans to turn the kingdom into an export hub for ASEAN between 2027 and 2030, with reported plans to sell in the Middle East as well.

The company is one of the few major manufacturers based in Hue, the former royal capital of Vietnam. Founded in 2018, the company manufactures buses, minibuses and trucks, and has been expanding into electric buses and other new-energy commercial vehicles. It has used technology-transfer agreements with Chinese partners to develop parts of its supply chain, including engines and axles, as it seeks to increase local production of automotive components.

Though Vietnam has become a factory colossus for the world's phones and shoes, it is still rare for a local manufacturer to produce products overseas. VinFast has expanded into Indonesia and India while suspending U.S. factory construction, but few other Vietnamese vehicle makers have pursued international manufacturing.

While it works with Chinese suppliers and uses batteries from BYD, Kim Long said 90% of its diesel-bus supply chain is domestic. The company also plans to raise local content in its electric buses from the current 60% level.

The move comes as Vietnam and Thailand are emerging as rare exceptions to China's dominance of the ASEAN electric-bus market. Vietnam's cities buy buses from local maker VinFast, while Thailand has developed domestic assembly and manufacturing capacity through companies such as Nex Point and its local partners. Elsewhere in the region, Chinese brands including Foton, Skywell and BYD dominate sales.

Kim Long's expansion could strengthen automotive links between Vietnam and Thailand while giving the company access to the kingdom's larger supplier network, developed since the country began developing its auto industry in the 1960s.

By contrast, Vietnam only began opening up its economy in earnest after the lifting of the U.S. embargo in the 1990s, leaving domestic manufacturers less time to develop industrial capabilities and expand abroad.

Previously, Kim Long inked a deal to sell 3,000 electric and diesel buses to Cho Thavee and 1,000 vehicles to Kijsetthi Mobility, both in Thailand. Last week it delivered nine electric buses in a 113-bus contract to Thai customer Innopower.

"This is an important foundation for Kim Long Motor to improve competitiveness, actively adapt to operational requirements, and gradually expand its presence in international markets," the company said of this week's expansion.

Adaptation includes design, as its vehicles are configured for left-hand drive in Vietnam and right-hand drive in Thailand.

Vietnamese officials have pointed to Kim Long as an example of efforts to build domestic industrial capabilities. The company developed electric axles in 2024 and followed up with investments in advanced engine production in 2025, with ambitions to export the products across the region.