Vietnam’s auto industry needs deeper involvement in global supply: experts

Vietnamese enterprises in the auto industry are not deeply involved in the global supply chain. To become global suppliers, domestic enterprises must be consistent with the management culture and business philosophy of global manufacturers, experts have said.
Vietnam’s auto industry needs deeper involvement in global supply: experts ảnh 1Workers assemble a car at a plant of Thanh Cong Group. (Photo: VNA)
Hanoi (VNS/VNA) - Vietnamese enterprises inthe auto industry are not deeply involved in the global supplychain. To become global suppliers, domestic enterprises must be consistentwith the management culture and business philosophy of globalmanufacturers, experts have said. 

This is a long-term accumulation process with no shortcutsthat Vietnamese businesses must overcome if they want to join deeply inthe global supply chain, said experts.

Phan Dang Tuat, Chairman of the Vietnam Association of SupportingIndustries (VASI), said before the fourth industrial revolution, people paidsignificant attention to the industrial development level of a countryinvolving in automotive, electronics and chemical industries.

A recent study by Toyota Motor Vietnam (TMV) showed that morethan 75% of Vietnamese enterprises frequently encountered problems inproduction methods, standardisation of operations, and product quality control.

Most of them did not have managerial tools to control productprocesses or delivery schedules causing waste and large inventory.

Tuat said the automobile industry combined all quintessence oftechnologies, production methods and modern management methods.

He noted the learning experience of production and corporategovernance from developed countries and global leading auto manufacturers wasvery important for Vietnamese enterprises in international integration.

In early July, the Industry Agency underthe Ministry of Industry and Trade and Toyota Motor Vietnam(TMV) signed a memorandum of understanding on a cooperation project tohelp domestic businesses in the automobile supportingindustry improve their capacity and enhance the connectivity between themand car assemblers.

This is the fourth year the two sides have inked a cooperationdeal to assist domestic firms to raise the rate of locally made components inautomobiles.

After three years of cooperation, TMV has recruitedone official supplier and selected seven potential suppliers as wellas conducted training for 60 Vietnamese suppliers.

The total number of localised products in the automobilesupporting industry has reached nearly 1,000 products of all kinds.

Tuat said manufacturing a car with tens of thousands ofcomponents needed scientific production and management systems.

He said only through cooperation and continuous learning couldVietnamese enterprises improve their product quality to grasp the opportunityto become a part supplier for global automobile manufacturers.

On July 18, TMV and VASI just signed a Memorandum of Understanding(MoU) to support VASI members in building their capabilities and linkagesto automobile assemblers. This project will be implemented from 2023 to 2024.Specifically, Toyota Vietnam and VASI will implement two main activities,screening and making a list of potential auto part suppliers to connect withautomobile assemblers in Vietnam, and implementing an operational improvementsupport program for a number of domestic suppliers to improve the productionprocess.

Pham Thanh Tung, Deputy General Director of TMV, said relatedenterprises had not yet become main suppliers for Toyota, but they had beenable to cut production costs, increase labour productivity, and create a betterworking environment.

In addition, TMV had worked with suppliers to develop a closedgreen cycle, in an effort to reduce CO2 emissions in all stages of the productlife cycle at the supplier. As a result, Toyota’s suppliers reduced theiremissions by 6,462 tonnes of CO2 in 2022.

Tran Thi Kim Que, General Director of Phong Nam Co., Ltd. said“When we are offered this support, we will be able to stand on our own twofeet, with our own knowledge. The most difficult thing is how to convey thosepositive energies to all middle-level managers and continue to transmitthem to employees.

"We should take workers and employees as the centre ofoperations and support them because they are the ones who make the finalproduct.”

Sharing the view with Que, many small- and medium-sizedenterprises have the desire to become professional suppliers for Foreign DirectInvestment (FDI) enterprises in Vietnam.

They also wish to have a production management system that canmeet the strict requirements of fastidious markets such as Japan, the US, andEurope./.
VNA

See more

Vietnam-Denmark trade reaches 609.47 million USD in the first eight months of 2026, up 37.5% year-on-year (Photo: VNA)

Vietnam-Denmark trade ties gain fresh momentum

Vietnam-Denmark trade reached 609.47 million USD in the first eight months of 2026, up 37.5% year-on-year. Vietnam’s exports to Denmark totalled 346.81 million USD, an increase of 27.7%, while its imports rose 53% to 262.66 million USD.

Swiss President hails new Free Trade Agreement at Swiss-Viet Economic Forum 2026

Swiss President hails new Free Trade Agreement at Swiss-Viet Economic Forum 2026

Swiss President Guy Parmelin has described the newly signed free trade agreement (FTA) between Vietnam and the European Free Trade Association (EFTA) as a strategic commitment to closer economic cooperation, expected to strengthen legal certainty, improve market access and create fresh opportunities for businesses from both sides.

Delegates visit a booth at the 2026 Dien Bien International Trade Fair (Photo: VNA)

Dien Bien fair promotes Vietnam-Laos -China trade links

The 2026 Dien Bien International Trade Fair opened in Dien Bien Phu ward, Dien Bien province on the evening of October 17, expected to boost economic growth, promote border trade and expand opportunities for investment attraction and business cooperation in the northwestern region.

The introduction of three new domain extensions alongside existing extensions such as com.vn, org.vn, edu.vn, id.vn and biz.vn would create a more diverse and sector-specific national “.vn” domain system. (Photo: VNNIC)

Vietnam extends free .id.vn, .biz.vn domain fees to three years

The new domain extensions and improved fee incentives are intended to promote the digital economy and digital society by making national “.vn” domains more accessible, particularly to small and medium-sized enterprises, household businesses, cooperatives and young people.

At the ground-breaking of the social housing project in the Dinh Trung Central Park urban area in Vinh Phuc ward, Phu Tho province. (Photo: VNA)

Phu Tho breaks ground on 42 million USD social housing project

Developed by a consortium of An Phu Company Ltd and Eco Fire Company Ltd on a site covering more than 13,000 sq.m in the Dinh Trung Central Park urban area in Vinh Phuc ward, the projects is scheduled for completion and occupation in the first quarter of 2028. It is the 22nd social housing project to break ground in the province so far.

People enjoy tea at the fair. (Photo: VNA)

Northwest tourism fair opens in Lao Cai

Running from October 15 to 21, the fair is part of the expanded Northwest tourism cooperation programme for 2026 and is held in connection with the 2026 Muong Lo Culture and Tourism Festival.

Speakers at the thematic session on economic cooperation at the St. Petersburg Chamber of Commerce and Industry on October 16. (Photo: VNA)

Vietnam-Russia trade at structural turning point: report

The report adopts a practical approach, focusing on how businesses operate rather than relying solely on diplomatic assessments. Its aim is to identify ways to translate the two countries’ political goodwill and longstanding trust into tangible economic cooperation.

An overview of the Vietnam-Cambodia International Commerce & Culture Forum 2026. (Photo: VNA)

Vietnam-Cambodia Int’l Commerce & Culture Forum promotes business ties

Alongside the positive growth in bilateral economic and trade ties, Vietnamese Ambassador to Cambodia Nguyen Minh Vu highlighted regular cultural exchange activities, including culture weeks and days, artistic performances and photo exhibitions, which have helped introduce each country’s culture to the people of the other.