The Ministry of Finance (MOF) wants to apply regulations for the automobile industry which existed 17-18 years ago, but the Ministry of Science and Technology (MST) wants to remove them.

Many carmakers are hunting for suppliers to meet the demand that has been rising since last year, as well as counter the increasing prices of palladium, nickel, and aluminium for their components.

Looking back at the history of the automobile industry in Vietnam, the biggest limitation is the vision and capacity of policy makers.

The Vietnamese auto market will be busier when several foreign automobile companies invest in Vietnam.

Mr. Tran Van Tam, the owner of a homemade electric car, was recentlyy introduced on a British news site. Tam’s road from a dream to research and development of cars was a difficult journey.

Contrary to all predictions, Chinese cars continue to flow into Vietnam and sales have been increasing steadily, despite Covid-19 and the poor reputation of Chinese brands.

The regulations on defining a localization ratio for automobile products are out of date, according to experts.

According to Decree 103 issued by the Government on November 26, the first-paid registration fee for cars manufactured and assembled locally will be reduced by 50% from December 1, 2021 to May 31, 2022.

Car sales in Vietnam increased by 52 percent last month after five consecutive months of decline, showing positive signs for the car market at the end of the year.

Only a few spare parts are produced domestically, forcing domestic manufacturing and assembling enterprises to import automobile spare parts from other sources, experts said.

Semiconductor chip shortage has caused a crisis for major automobile producers in the world, forcing them to suspend production and extend the time to deliver their products, 

The Vietnamese auto market prospered for a few years before being affected by the Covid-19 pandemic, but sales of locally assembled cars have fallen.

To develop electric vehicle industry, charging stations, batteries and reasonable prices are all needed. But an overall policy for these issues is not yet available in Vietnam, particularly battery waste disposal and treatment.

Cars in Vietnam since 2021 are subject to new regulations such as registration fee, import tariff, and higher emission standards.

The Ministry of Finance has written to the prime minister proposing a halt to the reduction in the registration fee for locally assembled or manufactured cars, 

Existing incentive policies are not attractive enough to encourage local enterprises to further invest in the automobile industry.

While Covid-19 has had a big impact on the economy and most people, it has not hurt the rich. They are stil spending big money on luxury car models.

The Ministry of Planning and Investment (MPI) is drafting a plan on solutions to take full advantage of the opportunities to be brought by the investment relocation wave after Covid-19 to develop supporting industries 

The domestic automobile industry was forecast to thrive, given the Government’s supports in tax policies for imported automobile components coupled with the increasing income of citizens.