Auto industry ‘a priority'

The Government should encourage the development of auto manufacturing centres in Vietnam to help strengthen the domestic auto industry, according to a seminar held in the Chu Lai Open Economic Zone, the central province of Quang Nam on April 14.
The Government should encourage the development of auto manufacturingcentres in Vietnam to help strengthen the domestic auto industry,according to a seminar held in the Chu Lai Open Economic Zone, thecentral province of Quang Nam on April 14.

WhileVietnam has auto manufacturing plants across the country, thesefactories are scattered, a key weakness in plans for the country tobecome an auto-producing nation.

A raft ofchallenges to the domestic auto sector was discussed at the seminar,which attracted hundreds of participants from domestic auto producersand the ministries of industry and trade, planning and investment andtransport.

Speaking at the event, Le Duong Quang,Deputy Minister of Industry and Trade, said the auto industry wasconsidered as a priority for development, and as a crucial contributorto the country's industrialisation and modernisation process.

Quang said a development plan for Vietnam 's auto industry to 2020,with a vision to 2030, should be considered as soon as possible, as itwould form the basis of the domestic auto industry's development in thenear future and compliment the nation's socio-economic development to2020.

Speaking at the seminar, Pham Van Liem, DeputyDirector of the Institute for Industry Policy and Strategy under theMinistry of Industry and Trade, said the plan should be consideredcarefully to satisfy the country's integration requirements and meetdomestic consumers' demands.

Liem said the autoindustry's development orientation should focus on producing one or twostrategic automobile models to supply domestic demand and help developsupporting industries.

He added that developmentshould be based on cooperation among domestic, ASEAN and major globalauto producers, and urged a national mechanical auto centre to be set upto help attract investors to the sector.

Liem alsosuggested that all economic sectors should be encouraged to invest inauto support industries, especially for auto engines, parts andaccessories.

Cooperation and transfer of advanced technologies with multinational companies should be also encouraged, he added.

According to the General Statistics Office, the country had 397automobile makers by the end of 2009. Those manufacturers have a totalassembly capacity of 418,000 units per year with 215,000 trucks and157,000 nine-seater cars per year.

The industrialproduction value of the auto industry was 19.956 trillion VND (964million USD) in 2009, accounting for 2.86 percent of the nation's totalproduction value, according to the office.

In itsfirst outing, the seminar was organised by the Ministry of Industry andTrade, Quang Nam provincial People's Committee and Truong Hai Auto JointStock Company./.

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