return icon

Frustrated with gov’t policy, automakers set up factories elsewhere

While Vietnamese ministries argue about policies on the development of the automobile industry, many auto manufacturers that once intended to invest in Vietnam have changed their mind and left the country.

VietNamNet Bridge – While Vietnamese ministries argue about policies on the development of the automobile industry, many auto manufacturers that once intended to invest in Vietnam have changed their mind and left the country.


Japanese Mazda, for example, recently announced that its main production base in Southeast Asia would be located in Thailand. Besides an assembling factory, Mazda is now moving ahead with a plan to develop a factory specializing in engines in Thailand.

The building of an engine factory in Thailand will start the second phase of Mazda’s Eco-Car program. The Thai government has promised many investment incentives to foreign investors who make fuel-saving and environment-friendly automobile products.

Hyundai, the South Korean automobile manufacturer, has unexpectedly announced that it would beef up production lines in Malaysia.

An analyst noted that most of Hyundai’s car models released this year and sold in Thailand and Vietnam were made in Malaysia.

He said that with the automobile factory in Malaysia, Hyundai can enjoy benefits from AFTA’s CEPT, a preferential tariff program, which helps its products become more competitive in Southeast Asian markets.

He said that most of the world’s big automobile manufacturers have been eyeing Southeast Asian countries as places to set up production bases, because they can take full advantage of regional free trade agreements (FTAs).

However, no automobile manufacturer has explicitly said they would invest in Vietnam.

The problem is that the government of Vietnam still has not clarified its policies on automobile industry development. Meanwhile, other countries have publicized their policies for investors’ consideration.

Southeast Asia is considered the last potential automobile market in the world. It is expected that 4.7 million cars would be bought by 2018, and 8 million by 2030.

As multinational automobile groups have decided to invest in other Southeast Asian countries, Vietnam may have few opportunities as its policies are still on paper only.

Ministries and branches have been told to review current policies and make reasonable proposals to the Prime Minister by November 2014 at the latest.

Nguyen Manh Quan, Director of the Heavy Industry Department of the Ministry of Industry and Trade, said that his ministry had consulted with relevant ministries and branches about tax policies on automobile products. However, there have been very few replies.

The program on automobile industry development was initially planned to be submitted to the government before the opening of the eighth National Assembly’s session. However, no report has been submitted, though the session is expected to conclude in several days.

An official from MOIT said the auto industry policies could not be implemented in early 2015, as planned.

Tran Thuy


French Development Agency pledges more support for projects in Vietnam

The French Development Agency (AFD) will increase its support and donations for projects funded by French non-governmental organisations and associations in Vietnam.

Vietnam seeks stronger education partnership with US

Minister of Education Nguyen Kim Son on September 25 concluded his US working trip that aimed to strengthen education partnership between the two countries.


Central localities likely to be hit by typhoon Noru

AI integration the inevitable path ahead

Big Data and AI will be the optimal tools to run factories in the future and digital transition will help firms optimise costs and cut emissions.

Ministry to scrutinise VietGap certifications after fake labels found on vegetables

The Ministry of Agriculture and Rural Development is investigating reports of vegetables sold in supermarkets being marked with fake Vietnamese Good Agricultural Practices (VietGap) labels.

E-commerce sector in dire need of qualified candidates

The tight supply of qualified candidates in the labour market is a glaring issue facing e-commerce firms, according to insiders.

Unique green moss-covered homes of the Tay Con Linh mountain range

It is an ideal environment for plants to flourish and thrive, including thick green moss, which ethnic people use to cover the palm-leaf roofs of their homes.

Farmers save wild birds and the environment

Farmers in different provinces throughout Việt Nam have for years spent time and effort to save wild birds, giving them a home to nest and lay eggs.

Deputy PM highlights significance of int'l solidarity, cooperation at UN session

The strengthening of international solidarity and cooperation is key to addressing interlocking global challenges, affirmed Permanent Deputy PM Pham Binh Minh while addressing the general debate of the 77th Session of the UN General Assembly.

Huge potential for luxury real estate in Vietnam

The branded residence market is gaining a stronger foothold in the Vietnamese market with potential to further develop, shaping the lifestyle of the country’s elite, according to experts.


Action plan to promote green growth in agriculture

Vietnam’s economic growth counts on high-tech FDI

Vietnam’s economic growth has been accelerating in 2022, with experts considering high-tech foreign investments as a driver.

The “seven-star” islands in Quang Ninh

Along with crystal blue sea and beaches, the 7 Sao (seven star) islands also have caves and primeval forests.

Customs you only see in Vietnam

The travel site Culture Trip has listed a number of Vietnamese customs that often surprise foreign tourists:

Investors and buyers play waiting game in credit switch

The State Bank of Vietnam finally created extra credit room for some banks on September 7. However, the extension is deemed low and may not help real estate businesses and homebuyers access feasible capital sources for their projects.