Illustrative image (Photo: VNA) At the same time, the country will prioritise investment projects in hightechnology, supporting industry, and digital economy innovation, especially inthe automotive industry, to create favourable conditions for Vietnameseenterprises to participate in the value chain.
Nguyen Thi Thu Ha, general director of Invest Global, said that with apopulation of nearly 100 million people and favourable natural and geographicalconditions, Vietnam had great potential in the automobile industry.
She added that this was an industry that the Vietnamese Government prioritiseddeveloping, with the expectation of building a strong Vietnamese auto industryand making an important contribution to the economy.
However, compared with other countries in the region, the number of Vietnamesesuppliers in the auto industry was still very small, and only a few domesticsuppliers could participate in the supply chain for automobile manufacturersand assemblers in Vietnam.
Dang Hoang Mai, a representative of the Vietnam Institute of Strategy andPolicy for Industry and Trade, said that Vietnam has the potential to developthe electric vehicle (EV) market in the future because the current carownership rate of Vietnam was at 23 cars per 1,000 people. This figure was onlyequal to 10% of Thailand and 5% of Malaysia.
With increasing income levels and improved infrastructure, sales and output ofthe auto industry are forecasted to grow in 2021-2030.
However, contrary to the trend of rising car consumption, enterprises operatingin the auto industry, especially the auto manufacturing supporting industry,did not grow as expected, said Mai.
The localisation rate for personal cars with up to nine seats is low at lessthan 20%, of which Thaco reaches 15-18%. Toyota Vietnam is the highest at 37%(for Innova models).
This number is much lower than in Thailand, Indonesia and Malaysia.
Opportunity for Indian investors
As the world and region has a great influence on many manufacturing industries,the semiconductor chip industry and the automotive industry, Vietnameseenterprises were expecting to have more partners, and manufacturers ofcomponents assembled in the country, said Tuan.
As the sixth largest economy in the world, India's total investment capitalinto Vietnam only accounts for 0.2% of the total FDI that 139 countries andterritories have invested in.
The deputy director noted that the opportunity to promote cooperation andinvestment between the two sides was huge, especially with Vietnam boosting FDIinflows into the automotive supporting industry.
At a recent business meeting on the auto sector between Vietnam and India, hesaid that investment cooperation between the two countries was still notcommensurate with the potential.
Pranay Verma, Ambassador of India to Vietnam, emphasised the AutomotiveComponent Manufacturers.
Association of India (ACMA) was the leading association in India with more than800 members, contributing to 85% of sales in the Indian auto parts industry.
Through the visit to Vietnam, ACMA wished to explore investment, trade andbusiness opportunities in Vietnam, said the ambassador.
He added that this was an excellent opportunity for businesses of the twocountries to find partners, exchange business cooperation opportunities, andlearn new technologies, equipment and spare parts in the auto industry./.
VNA
