The Government’s already-approved development strategy for the auto industry could help Vietnam meet domestic demand and join the world’s production chain but specific policies must be in place to help the nation realize preset goals, according to foreign experts.

Jesus Metelo Arias, chairman of the Vietnam Automobile Manufacturers Association (VAMA), said the strategy is a right orientation. However, the strategy has yet to have specific measures and policies to help related agencies and enterprises reach the targets.

“We are willing to cooperate with ministries to work out specific policies to reach the strategic targets,” he said.

Regarding auto supporting industries, Arias said Vietnamese suppliers can join the production chain, but they are unable to compete with foreign rivals in terms of production costs as the Vietnamese auto market is still small.

Vietnam’s auto industry should grow further and there should be production cost reduction solutions to help domestic firms enhance their competitiveness, he added.

Audi Vietnam general director Laurent Genet proposed the Government set up infrastructure planning and environment protection rules so as to meet demand of car users and for development in this country. Collection of road-use fees and parking fees is necessary for better management.

As reported by Vietnam News Agency, under the Government’s approved new development strategy for the auto industry, supporting industries for the sector should use advanced technologies and enter partnerships with leading world manufacturers to be eligible to supply parts for global automakers.

By 2020, auto supporting industries are expected to meet at least 30% of the demand for domestic spare parts and accessories. More than 65% of local needs will be satisfied between 2026 and 2035.

The volume of autos manufactured and assembled in Vietnam is estimated at 228,000 to 1.5 million units in 2020-2035, meeting 67-78% of local demand.

Around 90,000 autos manufactured and assembled will be exported in the period, generating a total export value of around US$10 billion.

The Prime Minister’s Decision 1168/QD-TTg dated July 16 approving the strategy will replace Decision 175/2002/QD-TTg on December 3, 2002.

More luxury cars offered on local market

*Japanese automaker Nissan has launched two luxury models of Infiniti on the local market while UK Auto Joint Stock Company has also brought Jaguar cars to the nation.

Prices of Nissan’s high-class cars QX80 and QX70 are VND4.5 billion and VND3.1 billion respectively.

The demand for luxury autos in Vietnam has increased. Mercedes Benz Vietnam sold 1,100 cars in the first half of 2014 and 224 cars in July, accounting for 65% of the luxurious market segment.

SGT/VNN