AsemconnectVietnam - Vietnam’s Automotive Industry Development Strategy to 2030, with a vision to 2045, is raising high expectations for a manufacturing sector capable of technological self-reliance and deep participation in the global value chain.

Five pillars in the automotive industry
The automotive industry is a key industry with strong ripple effects, impacting many other sectors. In the value chain, supporting industries play a decisive role in the localization rate, cost, and competitiveness.
The Ministry of Industry and Trade recently finalized the draft Automotive Industry Development Strategy, identifying five pillars: Environment, technology, infrastructure, human resources, and market. Most notably, supporting industries are placed at the center, with the localization target pushed to unprecedented levels: 55-60% by 2030 and 70-80% by 2035.
Without self-sufficiency in components, Vietnamese automobiles will struggle to gain a competitive advantage. Looking at developed industrial nations like Japan and South Korea, a common denominator can be seen: they all possess a powerful supporting industry ecosystem, with thousands of businesses producing precision components.
The new strategy emphasizes the formation of five supporting industry clusters nationwide, acting as "technology hubs," connecting manufacturing businesses, suppliers, and research institutes. Vietnam hopes to make a leap into high value-added segments: electrical and electronic components, powertrain systems, new materials, batteries, and control modules for electric vehicles.
In particular, Vietnam is projected to consume 800,000-900,000 vehicles per year by 2030, 1.5 million vehicles by 2035, and over 5 million vehicles by 2045. This sufficiently large market size constitutes a "long-term order" for the development of supporting industries.
However, to meet the current requirement of more than double the localization rate, small and medium-sized enterprises (SMEs) – the backbone of supporting industries – must overcome many limitations: lack of capital, lack of technology, etc. Automotive components, especially electrical and electronic components, require extremely stringent standards, which very few Vietnamese businesses currently meet.
Another important goal is that by 2035, specifically during the 2026-2035 period, the domestic automotive supporting industry must meet over 65% of the demand for components and parts for domestic automobile production. This means that the supporting industries will play a key role in reducing dependence on imported components and contributing to lowering the cost of domestically produced automobiles.
For the Vietnamese automotive industry to develop sustainably and achieve its localization target, the experts believe that clear strategic solutions and specific support policies are necessary.
CK
Source: VITIC/moit.gov.vn