Such is the instruction of the Deputy Prime Minister Trinh Tien Dung at the meeting on the situation of the car industry in Vietnam on June 28.According to the Deputy Prime Minister, the car industry needs to be developed into a driving force of the economy with a strong competitiveness, encouraging the modernization and industrialization of the nation. In the automotive industry development, it’s necessary the collaboration with global car makers to meet the domestic demand for eco-friendly and fuel efficient cars, he said.
Automobile industry to become the economy’s driving force in the future
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So as to compete in the regional and global markets, good quality and affordable price are the decisive factors for made-in-Vietnam cars. Vietnamese car assembly enterprises are encouraged to form strategic partnership with world car makers to make research, manufacture and assemble cars in Vietnam meeting world standards.
Vietnamese car industry is not aimed only for the domestic market but should also target the global market.
Those are the objectives outlined by the deputy prime minister.
Expanding car assembly production
The Deputy Prime Minister requires enterprises and the Vietnam Automobile Manufacturers Association to restructure the car industry on the foundation of flagship products, the development orientation of the nation and the market demand. Each manufacturer should consider investing in high technologies and improving management, so as to reduce cost and prices, improve the qualities, productivity and competitiveness. Car manufacturer and assembly supporting companies need to form alliance in order to improve the efficiency of investment and specialization. At the same time, collaboration with potential international partners is necessary to develop the network of car components production that meet the international standards.
The Ministry of Industry and Trade (MOIT) should focuses on working with other ministries to work out and submit consistent polices and ensure an investment of fair competition between imported cars and cars made in Vietnam. With this being said, the policies must fulfill the market economy’s requirements and international commitments, at the same time clearly define strategic partners in automobile and auto part supply industries development. The local car industry is also encouraged to increase the localization rate in production. All fair-trade violations in auto import have to be dealt with accordingly through increasing supervision and monitoring. It is also important to have a better connectivity among manufacturers, suppliers and assembly businesses in increasing the products’ competitiveness.
To revise import tariff for accessories and auto parts
The Deputy Prime Minister assigned the Ministry of Finance to work in conjunction with MOIT and other related agencies to revise the tariff for importing accessories and auto parts consistently with the Government’s directions and international commitments. The MoF is requested to submit taxes and fees to ensure the interest of the Government, enterprises and citizens and most importantly for the development of automobile and auto parts industries.
The Deputy Prime Minister instructed the Ministry of Transport to work regulations for technical specification and environment standards for car making with a view to simplify administration procedures.
In the coming time, favorable policies will be announced soon to attract large scale car making project in Vietnam, encouraging the production of made in Vietnam cars and also potential car export to the ASEAN market.
