Will Toyota Vietnam cease car production?

Toyota is considering whether to cease car production in Vietnam or import entirely to benefit from the ASEAN tariff reduction roadmap.

Toyota Vietnam is considering ceasing car production in Vietnam. (Image caption: Inspecting an Innova, a model manufactured in Vietnam, in a garage in Phu Nhuan District, Ho Chi Minh City - Photo: Provided)

At a recent meeting announcing the 2015 business plan, Yoshihisa Maruta, General Director of Toyota Vietnam Joint Venture Company (TMV), stated that the company is considering either ceasing automobile production in Vietnam or importing entirely to benefit from the ASEAN tariff reduction roadmap.

According to Mr. Maruta, it takes an average of three years to prepare a new car model before it can be launched on the market, while under the roadmap to reduce import taxes on automobiles from ASEAN countries by 2018, this tax will be reduced to 0%.

Mr. Maruta argued that if the government does not have specific support policies, based on the overall strategy for the development of the automotive industry until 2020 and the vision for 2030 announced this year, businesses will switch to importing instead of importing components for assembly.

According to Tuoi Tre Online