What to do for the development of the automobile industry?

With an automobile assembly industry, a small market, with many complicated policies - while the roadmap for import tax rate of completely built-up cars from ASEAN countries to Vietnam is 0% in 2018 is near - what solution is there for businesses investing in the automobile industry to survive and develop?

As the import tax policies for completely built-up cars are gradually approaching the 0% mark and the time to accelerate the construction and development of the Vietnamese automobile industry to be competitive enough with 100% imported products is less than 4 years away. Many experts have commented that the door for the Vietnamese automobile industry is considered closed. However, there are still more optimistic views, along with the opinion that there is still a last chance for the Vietnamese automobile industry if it knows how to take advantage of technical barriers with tax and fee policies - Vietnam should immediately identify and focus on strategic car lines. Many views also affirm that Vietnam cannot help but develop the automobile industry - with all that it has, has done and the opportunities it brings in the future.

According to statistics from the Vietnam Automobile Manufacturers Association (VAMA), Vietnam currently has 18 FDI enterprises and 38 domestic enterprises participating in automobile production and assembly with a capacity of about 460,000 vehicles/year (including 200,000 cars, 215,000 trucks and other types of vehicles). On average, each year they contribute more than 1 billion USD to the state budget - just taxes alone. Currently, there are more than 60,000 workers working in factories and member companies of VAMA. If we count the number of workers working for original equipment manufacturers (OEMs) and two-wheeler manufacturing enterprises, assembly equipment suppliers, distributors... the number of people working in the industry is estimated at about 125,000 people... And about 500,000 people have been and are indirectly benefiting through the workers working at automobile and motorbike enterprises.

According to Vu Quang Tam, Deputy General Director of the Vietnam Engine and Agricultural Machinery Corporation (VEAM), the automobile industry is not simply a manufacturing industry that generates income and jobs for workers and contributes revenue to the State, but also plays an important role in the country's industrialization and modernization, and is the basis and driving force for the development of other industries. The policy of our Party and State is to strive for Vietnam to basically become a modern industrialized country by 2020. If the automobile industry is not developed, this goal will be affected.

Support for the industry needs to be implemented synchronously in both areas: support in the field of investment in production development, including investment in improving automobile assembly production capacity and investment in the supporting industry with the view of attracting reputable foreign manufacturers to participate in order to take advantage of resources and learn their techniques, technologies and management skills. Build and maintain good relationships with these manufacturers so that businesses in the supporting industry can participate in their global supply chain. Only then can there be a breakthrough for the development of this industry. At the same time, policies for the automobile industry need to focus on promoting the production of vehicles with high localization rates through financial instruments.

Developing our country's automobile manufacturing industry is a must, at this point there are only 4 years left to fully open the market in the ASEAN bloc. The demand for automobiles will increase. If domestic production cannot meet the demand, we will spend a large amount of foreign currency to import complete vehicles. Moreover, if the automobile industry fails, the consequences will not only be for the automobile industry but also for many other industries. Therefore, we must resolutely take action with the consensus and active participation of all related industries, policy makers, and automobile manufacturers to have strategies, plans, and specific policy mechanisms suitable for the development of the automobile industry...

Up to this point, Vietnam still does not have a Master Plan in the Automotive Industry Development Strategy to 2020, with a vision to 2030. However, the delay in having this Plan does not mean that there is no opportunity. And having an opportunity also means that there will be a solution - if we are really determined to implement it.

According to baocongthuong