Tan Chong Motor Holdings has signed a memorandum of understanding (MoU) with China automaker SAIC Motor to explore cooperation in the assembly, sales, import and distribution of motor vehicles in Vietnam, The Star reports.

It was not revealed which of the the SAIC brands will be involved under the agreement – the Chinese automotive conglomerate has Maxus, MG and Roewe, among others, under its umbrella. Tan Chong Motor said that the proposed project – if it materialises – could provide the company with the opportunity to expand its foothold in the automotive industry in Vietnam, it said in a filing with Bursa Malaysia last week.

The company owns automotive assembly plants in Vietnam and Myanmar, and also distributes passenger and commercial vehicles in Laos and Cambodia. It is however set to halt its Nissan-based activities in Vietnam in September.

In December last year, it was reported that Nissan was terminating its JV agreement with Tan Chong’s wholly-owned subsidiary, ETCM (V), the latter losing the rights to import and distribute Nissan vehicles and parts in the country from September 10 this year.

The company also assembles Nissan vehicles in Myanmar. Back in 2016, it was reported that it would start building the Almera (known as the Sunny in that market) at an existing factory, but was set to expand production upon relocating to a new 50-acre facility in Bago, located 80 km northeast of Yangon, in 2018.