Promoting links in the automobile industry

14:25 | 07/09/2014 Trade

(VEN) - Together with automobile industry development planning by 2020, with a vision to 2030 issued by the prime minister, the Ministry of Industry and Trade’s automobile industry development strategy in its period was also approved by the government, contributing to offering development opportunities for the industry. Ministry of Industry and Trade’s Heavy Industry Department Director General Nguyen Manh Quan talked about the issue in an interview with Vietnam Economic News’ Thuy Linh.

The automobile industry has not yet achieved set targets. What are your points of view?

Vietnam’s automobile industry has achieved encouraging results after nearly 20 years of construction and development and nearly 10 years of planning implementation with the active participation of numerous enterprises in all economic sectors, including some large automobile groups in the world such as Toyota, Ford, Nissan and Mercedes. The country has formed the assembly industry with 18 and 38 FDI and domestic enterprises with a production capacity of about 460,000 cars per year.

Together with the assembly industry, Vietnam has also formed support industries in order to offer a number of spare parts for the automobile industry.

However, the automobile industry has not achieved set targets. The localization rate has remained low and support industries have remained weak. Vietnam also has not created cooperation and links among enterprises and has not formed the supply chain.

Could you tell us more about the automobile industry’s advantages?

In addition to a large population, people’s living standards, incomes and transport infrastructure have gradually been improved. These crucial factors would contribute to increasing using requirements to 400,000 cars by 2020 and about 2 million cars by 2030. Experts said that the 2020-2030 period would be a boom phase for Vietnam and neighboring ASEAN countries’ automobile industry.

After nearly 20 years of construction and development, Vietnam has accumulated experience with good technical infrastructure for the industry. In particular, Vietnam’s automobile industry could deeply participate in the ASEAN and Asia supply chains after 2018.

Component and spare part manufacturers should take advantage of opportunities from automobile industry development planning and strategy to promote production, contributing to reducing costs and improving the competitiveness in order to be able to compete with imported cars.

Which innovation and breakthrough will the development planning and strategy offer?

The prime minister issued Decision 1211/QD-TTg dated July 24, 2014 on approving automobile industry development planning by 2020, with a vision to 2030 and development strategy in its period drafted by the Ministry of Industry and Trade. This is an important premise for the development of Vietnam’s automobile industry in the coming time.

We hope that the automobile industry would create a breakthrough in the next time thanks to the government’s strong support. This is an important industry serving the country’s industrialization and modernization. In addition to the development of transport infrastructure, the government committed to adopt clear and open mechanisms and policies.

Vietnam’s industrialization strategy by 2020, with a vision to 2030 in cooperation with Japan approved by the prime minister will also offer development opportunities for the automobile industry. According to the strategy, Vietnam would focus on six industries, including the automobile industry.

Which key solutions will be agreed to promote the development of the automobile industry?

In addition to agreeing solutions and adopting clear and open mechanisms and policies, the government should soon issue a decree in order to encourage the development of support industries.

The Ministry of Industry and Trade will host and coordinate with relevant ministries and departments to submit to the prime minister for approving a decision on specific mechanisms for the automobile industry and a decree on encouraging the development of support industries.

Focusing on improving transport infrastructure serving the country’s socioeconomic development and stimulating automobile consumption is needed.

Enterprises need to be aware of the importance of the automobile industry. In addition, the government should promote links among enterprises, contributing to improving the competitiveness./.