Increasing the localization ratio and reducing production costs are vital issues for Vietnam’s automobile industry. As Vietnam is one of the worlds’s largest tungsten producers, it could be material that could help revive the auto industry. 

VietNamNet Bridge - The Vietnamese automobile market is expected to have an unpredictable year following an unsatisfactory 2017.

Under a new decree, used auto imports will have no way to enter Vietnam because of high tariffs and strict requirements on maintenance services, creating a golden opportunity for domestic automobile manufacturers.

Automobile joint ventures believe the policy will encourage them to import CBU cars instead of assembling cars domestically. 

The Ministry of Finance plans to cut import taxes on auto parts, in line with the World Trade Organisation’s rules.

The domestic market will open more widely to foreign cars as enterprises now will not be required to submit as many documents as they did before, as stipulated in Circular No 20/2011.

Contrary to all predictions, automobile manufacturers have set modest targets for this year’s business plans. After a two-year boom, the automobile market is expected to be more quiet in 2017.

VietNamNet Bridge - Foreign investors can see great auto sales opportunities in the Vietnamese market. Billions of dollars have been spent to develop car distribution networks instead of manufacturing.

VietNamNet Bridge - Kamaz has announced it will continue assembling trucks in Vietnam, a move which may help dislodge Chinese trucks from the Vietnamese market.

Despite failure in developing an auto industry in the last two decades, Vietnam still dreams of building an industry of its own. 

VietNamNet Bridge - Automobile joint ventures between Russia, Belarus and Vietnam are expected to be set up soon.

VietNamNet Bridge - Four UAZ models will be available in Vietnam, including Patriot, pickup, offroad Hunter and another commercial vehicle model. However, most Vietnamese have shown little interest in the news.

VietNamNet Bridge - Indian car manufacturers may find it hard to enter the Vietnamese market because of a new decree. 

VietNamNet Bridge - The Ministry of Transport (MOT) is compiling a legal document which will replace the controversial Circular 20, which bars small automobile importers from entering the market.

Nearly 70% of Vietnamese who joined a recent survey of carmaker Ford said fuel efficiency is more important than capacity when they decide to buy cars.

VietNamNet Bridge - The State budget every year funnels big money into national scientific research projects, but discoveries by scientists seem to have little significance in the eyes of businesses.

VietNamNet Bridge - Automobile manufacturers complain that the Vietnamese market is too small, but they continue to make profits on the small market.

VietNamNet Bridge - Vietnamese tire manufacturers now can benefit from a drop in natural rubber prices but they have to compete fiercely with Chinese and Thai colleagues.

Nguyen Thi Kim Ngan, who took office as the new Chair of the National Assembly, has admitted the failure of the plan on developing Vietnam into an industrialized country which marches towards modernization.

Vietnam, a large market with high population and a developing economy, which is part of the vast 600 million people AEC (ASEAN Economic Community) market, is a ‘promising land’ for Russian automobile manufacturers.