Domestic car markers to be supported to speed up exportsTuesday, March 12,2019
AsemconnectVietnam - Several Vietnamese car makers such as Truong Hai Automobile Company are going to exports automobile and spare parts.
Their automobile projects are strongly supported by the Ministry of Industry and Trade.
Car marker to exports automobile and spare parts to ASEAN and US
The Truong Hai Automobile Company (Thaco) plans to export locally manufactured buses, cars and semi-trailers as well as spare parts and accessories to the US, Canada, Thailand, Singapore and the Philippines worth 60 million USD in 2019.
Director of the manufacturing section of Thaco Nguyen Quang Bao said the plan followed agreements with partners.
Bao said the first batch of 350 buses and 1,400 trailers would be delivered to customers in Thailand, Singapore, the Philippines, the US and Canada, while Kia Sedonas with 40 percent of locally made accessories and spare parts would be exported to Thailand later this year.
He said Thaco also planned to build a new truck factory at the Chu Lai-Truong Hai Automobile Industrial Zone with a capacity of 50,000 trucks per year, while the existing commercial Kia automobile manufacturing plant would be upgraded to produce 50,000 Kia cars each year for domestic sale and export.
The director said Thaco planned to produce 110,000 vehicles in 2019 including 75,000 commercial cars and 35,000 trucks, buses and trailers for the domestic market and export.
Thaco has manufactured and distributed vehicles for foreign brands such as Kia (the Republic of Korea), Mazda (Japan), Peugeot (France) and BMW (Germany).
In 2013-17, Thaco began exporting locally manufactured Mazda cars to Laos, and accessories and spare parts to the Republic of Korea, Malaysia, Russia and Kazakhstan, as well as plastic components for commercial cars to Russia and Malaysia.
The Quang Nam-based automobile maker acquired a 51 percent share in Korean Soosung Motor Technology company to produce cranes, dumps, concrete mixer trucks and tankers in the Republic of Korea in 2013.
It also has developed 24 plants to produce windscreens, chassis, seats and wiring for buses, trucks, touring cars, trailers and special purpose vehicles in the Truong Hai-Chu Lai Automobile Industrial Zone.
Automobile industry projects of car makers strongly supported
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 prioritized for development as well as policies for each sector.
In terms of the support industry, the ministry will effectively conduct projects under the support industry development program, which has been approved for a number of key industries such as automobiles and electronics.
MoIT report showed many major projects of the automobile industry came into operation and many products rolled out to the market in 2018, marking positive contributions to the growth of the whole industry. They included VinFast automobile production complex with total investment of VND35 trillion (US$1.5 billion) and capacity of 500,000 cars per year, Thaco Mazda automobile production plant with total investment capital of VND12 trillion and capacity of 100,000 cars per year, and Hyundai Thanh Cong automobile factory with total investment capital of VND1.32 trillion and capacity of 40,000 vehicles per year.
“The whole industry has been formed and developed by a number of domestic private industry groups with potential to operate in the processing and manufacturing industry, typically in the field of automobile assembly and production are VinGroup, Thaco and Thanh Cong Group,” the report said.
The report also said that the intermediate goods in industrial production of Viet Nam still depended on imports. The support industry had not yet met the targeted demand. In addition, the level of business co-operation among enterprises was still limited, not yet creating linkages among industries.
Vietnam’s imports and exports of petroleum in first two months of 2019
Vietnam’s imports and exports of iron and steel in first two months
Imports of petroleum decreased over 50% in first 2 months
Iron and steel import price increased in first 2 months
Selling pressure pulls down VN-Index
Rice exports to Angola soar over two-month period
Leading export markets of iron and steel in first 2 months
Exports to China decreased in first two months
FDI inflow promises bright prospect for property sector
Vietnam targets higher coffee quality, value
VN stocks to keep rising this week
Agricultural sector posts trade surplus of $1b in two months
Tra fish exports see positive signs
Southern region attracts strong wave of investment from RoK