Vietnam imports 51,000 vehicles in first half of 2017

The country’s auto part manufacturing industry also had a good opportunity to participate in the production chain in ASEAN since its rival Thailand faced a shortage of skillful workers.

Chris Humphrey, executive director of the EU-ASEAN Business Council based in Singapore, told the online newspaper VnExpress.net that Vietnamese producers had not only been reinforcing their position in the domestic market but also expanding exports, especially in its traditional market of ASEAN. The outlook for auto parts and components was therefore optimistic.

He said once the tariff barrier is lifted under the ASEAN free trade agreement in early 2018, it would allow Vietnam to produce parts and accessories to serve the auto industry in other countries in the region, citing the example of Thailand, a country lacking skilled workers.

Kasinee Phantteeranurak, project manager at leading Asian event organiser Reed Tradex Co, Ltd, said the European Union, Japan, the Republic of Korea and the US are potential markets for Vietnam. However, they are high-ranking manufacturers, therefore their demand in terms of quality, stability and accuracy was very high.