Currently, Zonda Group CEO Mr. Xu Liankuan and Vietnam Motor Chairman Mr. Ruan Wenke formally signed a Joint venture agreement named Vietnam Zonda Automotive Co. Ltd in Nanning, the capital of Gangxi Province. The total investment is US 60 million dollars and the annual production capacity in the early stage is 5000 units of buses and bus chassis. The formal commencement of this project means that, after two years of feasible analysis and market research which started from 2005, both of two Parties finally came to the agreement through negotiations in-depth. It is the symbol that Zondas international strategy moves forward with a big step. Zonda Vice Chairman Mr. Zhang Xuqing, Vice President Mr. Zhou Jianmin and the management delegation form Vietnam Motor, totally more than 50 guests, attend this ceremony.

Stipulated in the agreement, based on complying with the Vietnam foreign investment regulation and other related laws, the Joint Venture will be established in Hanoi with the name of Vietnam Zonda Automotive Co. Ltd, shortened form as Vietnam Zonda, and VZM in English. The main business scope of the newly established Vietnam Zonda Automotive comprises production of whole bus, accessory parts and chassis.

Zonda bus, as one of the investors, will be mainly responsible for exporting to Vietnam Zonda Company technique, manufacturing equipment, CKD accessories, personnel training and capital investment. The establishment of Vietnam Zonda Automotive Co., Ltd. will exert significant influence on the developing of Vietnamese bus industry, which is comparatively week. Meanwhile, it will open one smooth channel of facilitating Zonda bus exportation to East Asian countries and expediting the globalizing pace of Zonda branded.

Vietnam auto market, being newly-developed, has not yet been fully opened. With the rapid construction of China- ASEAN Free Trade Zone, Vietnam will gradually open its auto market from its previous limit policy. At the same time, in order to accelerate developing its domestic auto industry, Vietnam government will vigorously encourage foreign investment to the field of auto accessories manufacturing. They are expecting, by using the foreign capital and technique, to encourage cooperation and joint venture with its domestic companies, even the reformation progress of state-owned auto manufacturers. All of these offer a great opportunity for Chinese enterprises, including Zonda bus to explore the new Vietnam auto market.

In conclusion, zonda bus will seize the opportunities, on the basis of fulfilling preparation work in the early stage and strengthening the prospective research, and successfully establish the Vietnam Zonda Bus Co. ltd together with Vietnam Motors General Company in final. In terms of the words from Zondas certain department Principal, zonda will launch the bus with high price-performance ratio to Vietnam auto Market, and consummate its after-sales service step by step, so as to take up the market share in Vietnam and southeast countries by really exerting good quality and service.