PM invites Skoda to manufacture electric vehicles in Vietnam

Prime Minister Pham Minh Chinh urges Skoda to accelerate EV development and increase localization in Vietnam.

Prime Minister Pham Minh Chinh during a meeting with Skoda Auto's Chairman Klaus Zellmer. Photos: Nhat Bac/VGP

The head of government made this request during his meeting with Klaus Zellmer, Chairman of the Skoda Auto, on January 19 in Prague.

Skoda, the largest automaker in the Czech Republic with 130 years of experience, has partnered with Thanh Cong Group to invest in a manufacturing plant in the Viet Hung Industrial Park in the northern province of Quang Ninh. The plant, which is expected to be completed in the first quarter of this year, will be Skoda’s first automobile factory in Southeast Asia.

The Prime Minister called on Skoda to intensify its research and development of electric vehicles (EVs), boost localization, and transfer technology to Vietnam. He stated that the Vietnamese government would offer incentives for investors who meet technology transfer requirements to increase the scientific and technological value of their investments, expand their scale, and support Vietnamese enterprises in integrating into the supply chain.

Each year, the trend toward vehicle electrification in Vietnam becomes more pronounced. Initially dominated by Toyota and VinFast—representing hybrid and fully electric vehicles, respectively—the EV market has gradually attracted more automakers. Consumers are also becoming more receptive to electric vehicles. Hybrid and all-electric models have demonstrated durability comparable to gasoline and diesel cars while offering superior fuel efficiency. As the charging network expands, demand for EVs has grown. Only VinFast had previously made investments in charging stations, but in the past two years, private companies have also joined the market in anticipation of the industry’s shift.

The prime minister and owner of Sev.en Global Pavel Tykac.

Chairman Klaus Zellmer reaffirmed Skoda’s commitment to long-term investment and business success in Vietnam.

Zellmer said the company values localization and aims to increase the local content rate beyond the current 40%. He emphasized Vietnam’s strategic role as a key gateway to the Southeast Asian market and its potential to become a Skoda manufacturing and export hub. 

In Vietnam, Skoda and Thanh Cong Group have signed an agreement to produce and distribute Skoda-branded vehicles with a focus on localization, modern technology, and clean energy. In September 2023, the first fully imported Skoda models were launched on the Vietnamese market.

On the same day, Prime Minister Chinh met with leading Czech enterprises, including Sev.en Global, PPF, and Home Credit (a PPF subsidiary). Sev.en Global Investments operates across four continents and invests in sectors such as electricity generation, mineral extraction, and metallurgy.

In 2023, the company acquired a 51% stake in the Mong Duong 2 thermal power plant in Quang Ninh. In August 2024, Sev.en Global announced the plan to increase its stake to 70%, pending regulatory approval. According to Pavel Tykac, Sev.en Global’s owner, this is the largest Czech and European investment in Vietnam’s energy sector. The company also intends to expand into battery production and other energy-related investments.

The prime minister welcomed Sev.en Global’s sustainable investment strategy in Vietnam and its increased ownership in Mong Duong 2. He emphasized the need for the plant to operate at full capacity while ensuring environmental protection.

Regarding Sev.en Global’s capital contribution dossier, the prime minister urged the company to submit its financial reports so that the Ministry of Industry and Trade could review and approve the procedures within the first quarter of this year. He also encouraged the firm to explore investments in wind and solar power and to foster cultural and musical collaborations.

During his meeting with PPF, CEO Jiri Smejc discussed the planned transfer of 100% of Home Credit Vietnam’s equity to Thailand’s Siam Bank. The prime minister assured that regulatory procedures would be handled in accordance with Vietnamese laws and instructed PPF to work with the State Bank of Vietnam and the Ministry of Finance to address outstanding issues. He also encouraged PPF to explore other business opportunities in Vietnam.

Prime Minister Pham Minh Chinh is visiting the Czech Republic from January 18 to 20 at the invitation of Prime Minister Petr Fiala. This marks the first official visit by a Vietnamese Prime Minister to the Central European country in six years.