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Tuesday, July 16, 2024

Vietnam wants to develop automotive industry

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HCMC – The Government will issue numerous solutions to encourage the development of the automotive industry to meet the demand for domestic consumption and exports, said Deputy Prime Minister Trinh Dinh Dung.

Speaking at the groundbreaking ceremony for the Thanh Cong Viet Hung auto supporting industries complex in Quang Ninh Province on September 22, the official stressed the need to transform into an intellectual and digital economy, instead of relying on an underdeveloped industry with simple outsourcing and assembly.

Besides, enterprises should raise the localization ratio of their products and integrate deeply into the global value chain, he said.

At present, many Vietnamese people want to own a car and more people can afford to buy the product. However, the local auto industry is still registering a low ratio of localization, Dung was cited by the government website as saying.

The Government has set a target to build Vietnamese auto brands that can meet customer demands in terms of design and quality. Vietnamese enterprises should participate in the value chain of the auto sector, raise the localization ratio and penetrate into the global auto industry.

Vietnam attaches great importance and has been creating favorable conditions to encourage the growth of the local auto industry. In recent times, the Government has replaced infeasible targets with more suitable approaches and has encouraged large manufacturers to conduct the assembling process in the country via attractive policies.

Besides this, the Government has assisted local firms in studying and developing cars made in Vietnam with a high localization ratio and investing in technology innovation to assemble more cars, including those from leading international brands.

As the country has yet to make 100% of the value of a car, the Government has launched many policies to speed up supporting industries in general, and those for the auto sector in particular, thus creating more jobs and raising employee incomes.

However, the local supporting industries still have many shortcomings. The biggest challenge is the lack of participation among economic drivers, which are leading firms active in the auto sector.

Therefore, the leader praised the cooperation between the Quang Ninh Province government and the Thanh Cong Group in developing the complex, which covers 340 hectares at a strategically convenient location in Halong City.

This proves the vision and determination of local authorities and businesses in the implementation of the Government’s supporting industries development scheme. The complex will meet the demands of the Thanh Cong Group and help local auto supporting industries enterprises tap regional and international markets, Dung noted.

To help the project move on as scheduled, Dung suggested local authorities improve the business environment and mechanism, prepare high-quality manpower and infrastructure, while reporting problems during the construction process to the Government.

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