A manufacturing line of Huyndai Thanh Cong Company in the northern province of Ninh Binh. (Photo: VNA) Hanoi (VNA) - The Ministry of Industry and Trade (MoIT) will implementsolutions to support and promote the automobile industry projects of companiessuch as Truong Hai Automobile Company (Thaco), Thanh Cong Group, VinFast andothers.
The support is seen as a good signal for increasing domestic automobileproduction and assembly in the future.
The ministry will build a pilot part supply chain for automobile manufacturersand assemblers at home and abroad, and study mechanisms and policies to attractinvestment from multinational corporations investing in large-scale projects inVietnam, especially those focused on the brands and models not existing inASEAN, in order to create conditions for local enterprises to participatedeeply in multinational automobile production chains.
The ministry will also revise Government Decree No. 111/2015/NĐ-CP datedNovember 3, 2015 on support industry development to solve existing shortcomingsin the portfolio of support industry products which are prioritised fordevelopment as well as policies for each sector.
In terms of the support industry, the ministry will effectively conductprojects under the support industry development programme, which has beenapproved for a number of key industries such as automobiles and electronics.
The ministry’s report showed many major projects of the automobile industrycame into operation and many products rolled out to the market in 2018, markingpositive contributions to the growth of the whole industry. They includedVinFast automobile production complex with total investment of 35 trillion VND(1.5 billion USD) and capacity of 500,000 cars per year, Thaco Mazda automobileproduction plant with total investment capital of 12 trillion VND and capacityof 100,000 cars per year, and Hyundai Thanh Cong automobile factory with totalinvestment capital of 1.32 trillion VND and capacity of 40,000 vehicles peryear.
“The whole industry has been formed and developed by a number of domesticprivate industry groups with potential to operate in the processing andmanufacturing industry, typically in the field of automobile assembly andproduction are VinGroup, Thaco and Thanh Cong Group,” the report said.
The report also said that the intermediate goods in industrial production ofVietnam still depended on imports. The support industry had not yet met thetargeted demand. In addition, the level of business co-operation amongenterprises was still limited, not yet creating linkages among industries.-VNA
VNA
