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Vietnam’s autos target US market

The US market will be a big test for Vietnam’s automobile industry in its path to become ‘Asia’s Detroit’.

As COVID-19 has been contained in Vietnam, automobile manufacturers have begun implementing new development strategies with a focus on export, investment in high technologies, and clean energy to improve their competitiveness.

 

 

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Thaco, an automobile company, for example, has announced a comprehensive renovation strategy under which it will turn into a multi-field group, while automobile and mechanical engineering will still be its core business field.

VinFast, another 100 percent Vietnamese-owned automobile manufacturer, decided to penetrate the US market with its electric cars.

The SUV is scheduled to be on display at the Los Angeles Auto Show later this year and put into a test earlier the next year. The battery used for the model will be made by the joint venture between LG Chem and VinFast in Hai Phong City.

As COVID-19 has been contained in Vietnam, automobile manufacturers have begun implementing new development strategies with a focus on export, investment in high technologies, and clean energy to improve their competitiveness.

According to experts, it will take VinFast three years to obtain US certificates.

However, in return, the successful penetration into the choosiest market in the world will help VinFast improve their position in the world map. It will also serve as the springboard for VinFast to enter other markets, including China.

“This is just like a test. When we can enter the choosiest market, we will also be able to penetrate other markets,” said Pham Nhat Vuong, president of Vingroup.

VinFast has opened its office in Melbourne, Australia and recruited hundreds of engineers to expand the R&D center in the country, which will develop the next car and electric vehicle models.

VinFast has reportedly also recently wrapped up the takeover of Holden, an automobile manufacturer in Australia.

The US is also the ‘aiming point’ for Thaco, which it plans to enter after ASEAN. In late May, Thaco exported 36 trailers to the US out of the total 69 trailers to be exported under the distribution contract with Pitts Enterprises.

In 2020, Thaco plans to export more than 1,600 vehicle products of different kinds, worth over $50 million, and accessories.

An analyst said that by mastering high technology, developing electrical vehicles and boosting export, VinFast is in line with the trends of the world’s automobile industry.

China continues to give financial support to car models using new energy, while Europeans are increasingly fond of electrical motors. The Covid-19 pandemic has also changed consumers’ behavior and prompted them to use environmentally friendly products.

According to Foreign Policy, Vietnam’s automobile industry has been relying on imported car parts and the biggest problem of the industry lies in technology renovation.

In order to encourage manufacturers to increase the technological content in products, the government has decided to reduce the vehicle registration tax by 50 percent. 

Le Ha

 

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