With the attractiveness of Vietnam’s automobile manufacturing industry, Malaysian investors are keen to cooperate with our country’s businesses in this area.
Developed quite fast
Sharing about Vietnam automobile industry, Mr. Luong Duc Toan – Deputy Head of Processing and Manufacturing Department, Industry Department (Ministry of Industry and Trade) – said that in the last 2 years, the domestic automobile industry has developed quite well. fast. In 2018, Vietnam produced and assembled over 250,000 vehicles. Production products meet about 70% of domestic car demand. Industry has more than 40 enterprises involved in manufacturing and assembling cars. However, most are small and medium-sized enterprises.
According to Mr. Toan, the automobile industry has a low localization rate. Some products are localized but not high in science and technology. Each year, Vietnam still imports over 3 billion USD of components and spare parts for automobile assembly as well as repairing cars. Meanwhile, the localization rate of regional countries averaged 65-70%, with water reaching over 80%.
“If Vietnamese automobile manufacturers do not have a solution to improve localization rate, it will be very difficult to compete, especially in the context of the ASEAN Trade in Goods Agreement (ATIGA) effective, import tax on cars. from Vietnam to 0% from ASEAN “- Mr. Toan said.
Many businesses have plans to increase capacity in Vietnam like Toyota Vietnam, or Mazda has a production plant in Chu Lai with a capacity of 100 thousand vehicles / year; Hyundai also cooperated with Success Group and in the future there will be agreements to increase capacity. In addition, it can be mentioned that VinFast automobile project with a design capacity of 250 thousand vehicles / year, is expected to be 500 thousand cars / year by 2025.
Talking to reporters of Cong Thuong Newspaper on the sidelines of the seminar “Business opportunities between Vietnam and Malaysia in automobile components and spare parts” took place in Hanoi, Mr. Dato ‘Mohd Zamruni Khalid – Malaysian Ambassador to Vietnam Nam – said, Vietnam is a large market with more than 100 million people. The size of Vietnam’s automobile market is still low compared to some ASEAN countries such as Malaysia or Thailand. This shows that this is an attractive market and potential for investors. The implementation of the ATIGA will also help Vietnam become a promising destination for ASEAN enterprises, including Malaysia.
Moreover, the policy of attracting investment in this area helps Vietnam create a great attraction for Malaysian suppliers and car manufacturers. Along with that, the emergence of VinFast makes Vietnam’s automobile manufacturing industry attractive, creating great opportunities for manufacturers as well as supplying components.
The Malaysian ambassador said: “Malaysian enterprises want to cooperate with partners in Vietnam. Businesses from both sides can establish strategic business relationships and technology transfer in the growing automotive sector in Vietnam ”.
16 reputable Malaysian businesses in the automobile manufacturing industry have come to Vietnam to seek opportunities for cooperation in the field of spirituality, accessories and other technical services.
According to Cokhivietnam.vn