APEC sees automotive sector as driving force

15:17 | 01/06/2017 Ten Years An APEC

(VEN) - Development opportunities for the automotive sector among the 21-nation Asia-Pacific Economic Cooperation forum (APEC) are huge. However, a big development gap between APEC member economies is hindering the region’s automotive sector from transferring technology and promoting linkages. Therefore, APEC should give priority to assisting developing economies in boosting the automotive sector.

apec sees automotive sector as driving force

This was the gist of the Automotive Dialogue held in Hanoi on May 11 within the framework of the second Senior Officials’ Meeting (SOM2) as part of the APEC Vietnam 2017 activities.

According to the Ministry of Industry and Trade, the automotive sector plays an important role in APEC member economies, manufacturing 60 million vehicles per year and directly employing four million workers. In addition, the sector has contributed to training skilled workers and promoting the development of other industries such as metallurgy, engineering, electronics, automation and support industries.

The Vietnamese automotive sector has attracted the participation and investment of domestic and foreign businesses in recent years. Vietnamese automakers currently turn out around 500,000 units a year, create direct jobs for around 80,000 workers, and contribute about US$1 billion a year to the state budget. In particular, the local automotive sector contributed nearly three percent to the country’s gross domestic product (GDP) in 2016.

Deputy Minister of Industry and Trade Do Thang Hai said, “Vietnam is promoting international economic integration through free trade agreements such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Trans-Pacific Partnership (TPP), and strengthening participation in regional and international forums and organizations such as the ASEAN Economic Community. With a population of about 95 million people and high GDP growth, the Vietnamese automotive sector has been more interesting in foreign direct investment attraction.”

According to the Ministry of Industry and Trade, to help the automotive sector develop, APEC member economies need to adopt new mechanisms and policies and create favorable conditions for investment activities. “Given the fourth industrial revolution, to increase competitiveness towards sustainable development APEC member economies should consider and focus on improving the business environment as well as strengthening cooperation in the automotive sector,” Do Thang Hai said.

The Automotive Dialogue is a forum for senior officials of APEC member economies and representatives of the automotive

sector to discuss and seek cooperation opportunities in order to strengthen economic integration and development in the

region.

Nguyen Huong