Yesterday (June 14, 2019), the VinFast automobile manufacture plant was inaugurated after only 21 months of construction, three months earlier than planned. Prime minister visiting Vinfast factory The factory is based on an area of 500,000 square metres of the complex’s total area of 335 hectares in Dinh Vu-Cat Hai Industrial Park and is equipped with modern technology. In it first phase, the factory will have a capacity of 250,000 cars per year, which the next phase will double when it comes online in 2025. That means 38 Vinfast cars will be churned out every hour. Almost a third of the plant site has been set aside for potential supporting industry partners seeking to put up their own plants. VinFast targets using 60 per cent local parts in its cars and 100 per cent for electric motorbikes. It will deliver the first Fadil cars to customers starting from June 17. The Fadil is a small urban crossover utility vehicle (CUV) which will come in six colours. Its sedans and … [Read more...] about VinFast makes a miracle for automobile industry
Automobile industry
Automobile industry develops but local part supply still low
An automobile manufacturing line of Vinfast in the northern city of Hai Phong. — Photo VNA/VNS The automobile industry of Viet Nam has witnessed progress in the last two years, but the localisation rate (local part supply) still remains low, not meeting the set target, according to a Ministry of Industry and Trade (MoIT) report sent to the National Assembly for discussion and direction. The report shows that the volume of domestically-assembled cars was 250,000-260,000 units in 2017 and 2018, of which several types have been exported to foreign countries including, Laos, Cambodia, Myanmar and Central America. The industry has contributed billions of US dollars to the State budget, contributing to reducing the trade deficit and creating jobs for more than 120,000 workers. However, the localisation rate for cars with nine seats and fewer has reached about 7-10 per cent, concentrating on tyres, seats, mirrors, glass, electrics, batteries and plastic products. Meanwhile, the … [Read more...] about Automobile industry develops but local part supply still low
Malaysia seeks business opportunities in Vietnam’s automobile industry
Illustrative image (Source: VNA) Hanoi (VNA) – Vietnam is an attractive market for the automobile industry, Malaysian Ambassador to Vietnam Dato Mohd Zamruni Khalid said at a workshop on business opportunities in automobile spare parts manufacturing between the two countries in Hanoi on April 18. According to the ambassador, the presence of Vietnamese automaker VinFast has made the country’s automobile industry more attractive, creating opportunities for foreign manufacturers and component suppliers to discover the Vietnamese market. He said that 15 Malaysian enterprises operating in the field attended the workshop to seek cooperation opportunities with Vietnamese partners. Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Hoang Quang Phong expressed his belief that the two countries’ businesses should take advantage of development opportunities and exchange experience in automobile component manufacturing, which is one of … [Read more...] about Malaysia seeks business opportunities in Vietnam’s automobile industry
Government to better policies to boost automobile industry
The Government will provide policy support for automakers, but not at the cost of breaking its international integration commitments, Prime Minister Nguyen Xuan Phuc has said.— VNA/VNS Photo Vu Sinh The Government will provide policy support for automakers, but not at the cost of breaking its international integration commitments, Prime Minister Nguyen Xuan Phuc has said. The Government leader made the statement at a meeting with representatives of relevant ministries, localities and car firms in Ha Noi on Tuesday. At the meeting, which focused on solutions to promote the development of Viet Nam’s automobile industry, Phuc said better policies and institutions were needed to aid the industry, and that the country needed to “renew its thinking about this issue”. The Prime Minister noted his appreciation for firms that have invested in the country’s automobile industry, both assembling and manufacturing cars domestically, contributing to forming big hubs … [Read more...] about Government to better policies to boost automobile industry
Gov’t seeks solutions to boost automobile industry development
PM Nguyen Xuan Phuc at the meeting on the Vietnamese automobile industry, Ha Noi, March 12, 2019 - Photo: VGP/Quang Hieu The Government chief stressed that the automobile development strategy was already introduced. He blamed the wrong opinion which advocates whole imports of cars instead of developing the domestic automobile sector amidst the free trade context. The point of view is hindering the self-reliance of the economy, he added. The PM reiterated the Government’s spirit which chiefly focuses on mechanism consolidation and better policy making in favour of domestic production, people’s benefits in accordance with international integration practices and commitments. The Government chief also stressed the importance of policy development for auxiliary industries. PM Phuc praised Viet Nam’s automobile manufacturers which have spared no effort to contribute to State budget collection, job generation, and infrastructure development. He noticed the need to … [Read more...] about Gov’t seeks solutions to boost automobile industry development
Domestic automobile industry set for good growth
The Vietnamese automobile industry is expected to grow well, driven mainly by an increase in per capita income, demand for cars, and infrastructure improvement. Speaking at a seminar on auto industry, held during the Automechanika HCM City expo, Nguyen Thanh Dam, chairman of Vast Group JSC, said that production reached 215,000 autos last year, which was modest compared to other countries in the region. This accounted for just 0.2 per cent of the number of vehicles produced globally. More than 352,200 units were bought in Viet Nam last year, ranking fourth in the ASEAN region after Indonesia (1.1 million units), Thailand (950,000 units), and Malaysia (560,000). The average number of cars per 1,000 people in Viet Nam was still low (at 23 cars per 1,000 people) compared to other countries, Dam said. With an increase in income, a “golden demographic” with the number of people having good earnings now accounting for 52 per cent of the population, demand for cars among young … [Read more...] about Domestic automobile industry set for good growth
Ministry to support domestic automobile industry projects
A manufacturing line of Huyndai Thanh Cong Company in the northern province of Ninh Binh. (Photo: VNA) Hanoi (VNA) - The Ministry of Industry and Trade (MoIT) will implement solutions to support and promote the automobile industry projects of companies such as Truong Hai Automobile Company (Thaco), Thanh Cong Group, VinFast and others. The support is seen as a good signal for increasing domestic automobile production and assembly in the future. The ministry will build a pilot part supply chain for automobile manufacturers and assemblers at home and abroad, and study mechanisms and policies to attract investment from multinational corporations investing in large-scale projects in Vietnam, especially those focused on the brands and models not existing in ASEAN, in order to create conditions for local enterprises to participate deeply in multinational automobile production chains. The ministry will also revise Government Decree No. 111/2015/NĐ-CP dated November 3, 2015 on support … [Read more...] about Ministry to support domestic automobile industry projects
MoIT to support domestic automobile industry projects
The Ministry of Industry and Trade (MoIT) will implement solutions to support and promote the automobile industry projects of companies such as Truong Hai Automobile Company (Thaco), Thanh Cong Group, VinFast and others. The support is seen as a good signal for increasing domestic automobile production and assembly in the future. The ministry will build a pilot part supply chain for automobile manufacturers and assemblers at home and abroad, and study mechanisms and policies to attract investment from multinational corporations investing in large-scale projects in Viet Nam, especially those focused on the brands and models not existing in ASEAN, in order to create conditions for local enterprises to participate deeply in multinational automobile production chains. The ministry will also revise Government Decree No. 111/2015/ND-CP dated November 3, 2015 on support industry development to solve existing shortcomings in the portfolio of support industry products which are prioritised for … [Read more...] about MoIT to support domestic automobile industry projects
Vietnam’s automobile industry still too small compared with ASEAN countries
VietNamNet Bridge - Vietnam has been building up its automobile industry for the last 20 years, but the number of automobiles assembled in Vietnam is far below that of Thailand, Indonesia, Malaysia and the Philippines. Vietnam has been building up its automobile industry for the last 20 years The ASEAN Automotive Federation (AAF) has eight members, including Vietnam, Thailand, Indonesia, Singapore, the Philippines, Myanmar, Laos, Cambodia and Brunei. For many years, the domestic automobile industry has been developing joint ventures with foreign investment. However, the joint ventures only focus on assembling cars, while many of them have shifted to trading cars instead of domestic assembly. The demand is also still low in Vietnam. A report of the Ministry of Industry and Trade (MOIT) showed that 23 out of every 1,000 people own cars. The figure is 204 in Thailand and 400 at minimum in developed countries. RELATED NEWS Imports, domestically-assembled cars in … [Read more...] about Vietnam’s automobile industry still too small compared with ASEAN countries
MoF urged to revise automobile industry laws
The Ministry of Industry and Trade has asked the Ministry of Finance to remove the special consumption tax for locally-manufactured auto parts. (Photo: vietnambiz.vn) Hanoi (VNA) - The Ministry of Industry and Trade (MoIT) has asked the Ministry of Finance to remove the special consumption tax for locally-manufactured auto parts. This is part of a recommendation document that MoIT sent to the finance ministry in order to revitalise domestic automobile industry in the future and reduce the import of autos. The MoIT said that it is needed to have more measures to help local automakers cut production cost and accelerate the product’s competition capacity as well as revising policies on tax and fees. The ministry wanted the finance ministry to exempt the import tax on materials for part and components manufacturers who invest in Vietnam, which should be in association with their commitment on long-term investment, volume of products, technology transfer and use of local … [Read more...] about MoF urged to revise automobile industry laws