Japanese carmaker Mitsubishi Motors is on the hunt for a location in Vietnam to set up an automobile manufacturing factory.

Mitsubishi CEO Osamu Masuko announced during a meeting with Vietnamese Prime Minister Nguyen Xuan Phuc that its joint venture with Nissan is planning to produce electrics cars using advanced technology in Vietnam, DTI News reported.

Electric cars, according to the executive, are suitable for the Vietnamese market and will contribute to the country's environmental protection efforts.

Aside from electric cars, the group also plans "to make more investments and expand in Vietnam," according to the report. Mitsubishi Motors already produces Pajero Sport at its Vietnamese plant in Binh Duong province and has been producing locally for 20 years.

Phuc, meanwhile, pledged to create "favourable conditions for auto manufacturers" that are looking to establish and operate their businesses in Vietnam. The government expects other automakers will also invest in modern manufacturing technologies.