As many as 299,800 cars were domestically manufactured and assembled in Vietnam in 2021, a 9.1 percent increase compared with 2020, according to the General Statistics Office (GSO).
Car sales have dropped sharply because of the fourth Covid-19 outbreak, prompting dealers to offer big discounts.
The Ministry of Industry and Trade (MoIT) will pay greater attention this year to the implementation of projects manufacturing products in supporting industries, as many opportunities have appeared for Vietnam to bolster production and exports.
Foreign direct investment in supporting industries is expected to spike in the coming months as more and more foreign companies establish production facilities in Vietnam and seek to develop supply chains here, experts said.
The Ministry of Industry and Trade (MoIT) has introduced a range of measures to boost the growth of support industries in a bid to promote the engagement of local companies in production chains.
Some foreign automobile manufacturers and car part producers are considering setting up manufacturing facilities in Vietnam. Will Vietnam take advantage of the opportunity to become a production base in the region?
“If enterprises want to join the global supply chain, don’t think local,” said Nguyen Anh Tuan from Samsung Vietnam.
While other industries complain about the lack of jobs, enterprises in supporting industries have been operating at full capacity to satisfy a high number of orders.
International manufacturers are seeking component suppliers in Vietnam, considering Vietnam as an alternative market in the context of Covid-19 escalation.
A number of local firms in supporting industries have been receiving more orders from foreign partners due to the coronavirus outbreak disrupting supply chains in China.
Samsung Electronics has announced the temporary shutdown of its factory in Gumi, South Korea and has relocated the production line of some high-end smartphone models to Vietnam.
The move is aimed to help develop the automotive supporting industries, particularly as Vietnam still has to import massive basic materials for domestic car production.
The proportion of automobile parts made in Vietnam remains modest because of problems in production costs and quality.
The textile and garment industry has orders to export $18 billion worth of products, but the opportunities brought by CPTPP have not been that great so far.