Local car production on the rise hinh anh 1

A Thaco Mazda factory operated by the Truong Hai Automobile Joint Stock Company (Thaco). (Source: VNA)

Hanoi (VNS/VNA) - The automobile market is expected to change dramatically from now to the end of this year as the production of cars in Vietnam starts to recover.

According to the Ministry of Industry and Trade (MoIT), the volume of locally-assembled cars in July was estimated at 23,200 units, up 31.4 percent compared with the same period last year.

From January-July, automobile production reached about 140,800 units, increasing by 9.5 percent on-year.

According to the Industrial Policies Strategies Institute (IPSI) under the Ministry of Trade and Industry, domestic production is expected account for an average of 18.5 percent per annum from 2018-25, but then drop off to 13.8 percent per year from 2025-35. Vehicle production is predicted to reach 531,585 units by 2025 and 1.77 million units by 2035.

In terms of imports, after meeting the requirements of Government Decree 116/2017/ND-CP, which stipulates the conditions for production, assembly, import and business of automobile warranties and maintenance services issued on October 17 last year, the second half of this year will likely rise sharply over the first half of this year.

Statistics from the Vietnam General Department of Customs showed that Vietnam imported nearly 5,700 units in July, marking the highest volume in month since early this year. Most cars were imported from Thailand, Indonesia and the Republic of Korea.

Vietnam also imported auto parts from Japan, the Republic of Korea, Thailand, Indonesia and India.-VNS/VNA