Automobile industry ramps up growth efforts

Import tax on CBU (completely built unit) cars from Southeast Asian nations will be reduced to zero by 2018, posing a challenge for Vietnamese policy-makers and car producers, who now need to find ways to boost the domestic automobile industry further.
Import tax on CBU (completely built unit) cars from Southeast Asiannations will be reduced to zero by 2018, posing a challenge forVietnamese policy-makers and car producers, who now need to find ways toboost the domestic automobile industry further.

According to the Ministry of Industry and Trade, Vietnam’s automobileindustry currently almost meets domestic demand; 80 percent of thedemand for passenger cars and 60 percent of the demand for trucks aremet domestically.

Meanwhile, a domestic componentmanufacturing sector has been established, supplying numerous types ofspare parts for domestic automobile production and assembly.

Additionally, the broad participation of businesses, includingworld-famous manufacturers like Toyota, Honda, Nissan, Mercedes-Benz andFord, is boosting the local car industry. There are now 18foreign-invested businesses and 38 domestic businesses involved inautomobile manufacturing and assembly with a capacity of around 460,000cars per year.

According to statistics from theVietnam Automobile Manufacturers’ Association (VAMA), its memberscontributed approximately 1 billion USD generated in taxes to the Statebudget in 2013, and created jobs for around 600,000 people, bothdirectly and indirectly.

However, the localisationratio for automobiles assembled in Vietnam is very low, approximately7-10 percent for cars with less than ten seats, and 35-40 percent forlight trucks. Large manufacturers such as Toyota and Ford have failed toachieve their localisation ratio targets.

Meanwhile, prices for cars in Vietnam are 20 percent higher than in other ASEAN countries.

Jesus Metelo Arias, VAMA Chairman and Ford Vietnam Managing Director,said that rapid policy changes are preventing the auto sector fromgrowing, since automobile manufacturers usually plan their business andproduction activities for at least 5 years ahead.

Looking at Thailand, Vietnam’s neighbour, he said that the country nowranks amongst the world’s top 10 largest automobile exporters, producingaround 2.8 million units each year with 1 million units for export. Thesuccess can be attributed to such policies as protecting import tariffsfor manufacturing materials, lowering taxes from 30 percent to 20percent for automobile manufacturers, and encouraging local enterprisesto invest in manufacturing spare parts.

In an effortto boost Vietnam’s automobile industry, Prime Minister Nguyen Tan Dungrecently approved a master plan on the development of the industry by2020, with a vision for 2030. The automobile industry is to become animportant domestic sector, capable of meeting domestic demand fortrucks, passenger cars and some types of special-purpose vehicles.

Priority will be given to vehicles with less than nine seats, in linewith rising demand for this type of car. Estimates reckon that Vietnam’spopulation will exceed 100 million by 2020, and per capita income willreach 2,000 USD per year.

The State will also offerincentives to people purchasing both cars which suit the country’sinfrastructure and trucks intended for use in manufacturing andproduction.

Tran Ba Duong, Truong Hai Auto Chairman,said that Vietnam’s automobile industry requires the use of appropriatetechnologies that satisfy price requirements, rather than high techsolutions.

He also stressed the need for the countryto integrate itself more deeply into global supply chains and producecomponent parts in line with international standards.

To develop industries supporting the automobile industry, expertssuggested Vietnam put forward more preferential policies, such asreducing taxes, attracting more investments in the industry, andproviding loans for businesses.-VNA

See more

Delegates mark the launch of the new shipping route on February 18. (Photo: VNA)

New shipping route linking China, Vietnam, India launched

The container shipping route connecting the ports of Beibu Gulf (China), Hai Phong (Vietnam) and Kolkata (India) is destined to become a key strategic trade axis, contributing to the sustainable growth of both the regional and Vietnamese maritime industries.

Ca Mau province Deputy Secretary Nguyen Ho Hai receives a gift from the Singaporean ambassador Jaya Ratnam at a meeting held on February 17 to enhance exports and cooperation. (Photo: tuoitre.vn)

Ca Mau wants more exports to, cooperation with Singapore

The southernmost province of Ca Mau wants to increase agricultural and fishery exports to Singapore and strengthen cooperation in several sectors, Deputy Secretary of its Party Committee, Nguyen Ho Hai has told Singaporean embassy officials.

Permanent Deputy Secretary of the municipal Party Committee Nguyen Thanh Nghi hosts a reception for Japanese Ambassador to Vietnam Ito Naoki on February 17. (Photo: www.sggp.org.vn)

HCM City looks to deepen ties with Japan

The city aims to deepen cooperation with Japan in key areas such as sustainable urban development, emissions reduction, climate change adaptation, innovation, digital transformation, supply chain resilience, supporting industries, healthcare, tourism, culture, workforce development, and people-to-people exchanges.

Workers process shrimp for export. (Photo: VNA)

Shrimp exports grow in the first month of 2025

Shrimp products recorded a strong 13%increase in export value in January 2025, reaching a total of 273.3 million USD. This growth accounted for 35.3% of Vietnam's total seafood export turnover, contributing significantly to the country's overall seafood export performance.

Vietnam imposes VAT on low-value imported goods

Vietnam imposes VAT on low-value imported goods

It is estimated that if low-value goods worth less than 1 million VND are subject to a 10% VAT rate, State budget revenue could increase by around 2.7 trillion VND (105.6 million USD).

Can Gio International Transit Port blueprint. (Photo: sggp.org.vn)

Can Gio port added to national seaport development plan

The Ministry of Transport has approved adjustments to policies, solutions, and resource allocations for the implementation of the national seaport system master plan for 2021-2030, with a vision to 2050. The Can Gio port is now part of the implementation roadmap.

Rice packaging at the factory of Loc Troi Group in An Giang province. (Photo: VNA)

Vietnam expected to export over 7.5 million tonnes of rice in 2025

MARD’s supply and demand report sent to the Ministry of Industry and Trade (MoIT) projects the Mekong Delta will cultivate 3.78 million hectares of rice, yielding more than 23.96 million tonnes. Of this, 15.08 million tonnes of commercial rice, equivalent to 7.54 million tonnes of husked rice, will be available for export.

Representatives from EzyRemit Worldwide and Sacombank-SBR at the meeting on February 17 in Sydney. (Photo: VNA)

Vietnamese, Australian firms promote comprehensive strategic cooperation

EzyRemit Worldwide, one of the leading fintech companies in Australia, and Sacombank-SBR of Vietnam discussed expanding cooperation and enhancing international money transfer and payment services between Vietnam and Australia, thereby providing more values for customers in both countries.