Deputy head of Industry Department under the Ministry of Industry and Trade Nguyen Ngoc Thanh made the remarks at a seminar on the automobile industry in the era of industry 4.0 as part of the Vietnam Motor Show 2018, held recently in Ho Chi Minh City.
With technological advantages, a skilled workforce and low production costs, a number of countries such as Thailand, Indonesia or China are poised to reap success in the Vietnamese automobile market with the signed free trade agreements (FTAs) between Vietnam and regional countries,
Mr Thanh urged Vietnam’s automobile industry to devise practical solutions for further development in the future and to seize opportunities in order to overcome challenges faced from the development of regional neighbours.
According to statistics from the Ministry of Industry and Trade, Vietnam’s automobile industry has lagged 30 years behind other regional nations. Whilst Thailand, Indonesia, Malaysia have all been able to develop their automobile industries since the 1960’s, the automobile industry is new to the scene with its inception in 1991.
The country has also mapped out a development strategy leading to 2025, with a future vision aiming at 2035 for the automobile industry.
Along with development strategies and solutions from the Government, Vietnam’s automobile market has also seen the active involvement of businesses from all economic sectors, including some domestic manufacturers such as Truong Hai (Thaco), Huyndai Thanh Cong, Vinfast and the world’s leading automobile groups like Toyota, Ford, Honda and Mitsubishi.
Total assembling and manufacturing capacity in Vietnam has so far reached roughly 600,000 vehicles per year, covering a variety of types of vehicles with a high localization rate, including trucks (55%) and 24-seat passenger buses (45%-55%), which meets the set targets by 2020.