Buyers take a look at an Xpander car at a Mitsubishi showroom (Photo: autopro.com.vn) Hanoi (VNS/VNA) - A stronger automotive industry with higher participation offoreign firms will boost the domestic auxiliary industry, businesses have said.
"TheVietnamese automobile and motorbike industries have been very lively in thelast two decades and there is still room for further development," NghiemVan Hung, assistant manager at sales and marketing department, Inoac Vietnam CoLtd, told Vietnam News.
A largenumber of products are now produced and assembled in the country and foreignautomakers have moved their plants to Vietnam, he said.
Foreigncompanies have received preferential policies in terms of tax andadministrative work, so the number of foreign companies in Vietnam hasincreased, Hung added.
Mostforeign automakers come from Japan. Mitsubishi in 2018 inaugurated its firstassembly plant in the southern province of Binh Duong, becoming the seventhJapanese automaker moving production to Vietnam.
SomeIndonesian carmakers and part companies are considering moving their plants to Vietnamas well because they see potential in the Vietnamese market.
Accordingto Indonesian Ambassador to Vietnam Ibnu Hadi, auto and auto parts areIndonesia’s two biggest exports to Vietnam in terms of volume.
In thefirst four months of 2019, Vietnam imported nearly 58,300 cars in total, worth 1.3billion USD. Of the figure, Indonesian car exports accounted for more than12,700 units, worth 190 million USD.
Lastyear, Indonesian companies exported 289 million USD worth of cars to Vietnam. Thefigure is expected to reach 600 million USD this year.
Salesvolume of Mitsubishi Expander topped Indonesia’s car exports in the first fourmonths, with more than 17,600 car units. Of the figure, more than 3,700 unitswere exported to Vietnam.
Therefore,Indonesian companies are looking to expand their influence in Vietnam bysetting up offices and looking for local part suppliers.
Accordingto Prihatanto Agung Lesmono, president director of Astra Visteon Indonesia, hiscompany is looking for more tier-2 local suppliers with higher quality. AstraVisteon Indonesia has an office in Vietnam, known as Astra Visteon Vietnam CoLtd.
However,a number of Vietnamese part suppliers do not meet quality standards so theyneed improvement to meet the localisation requirements, he said.
But thecompetition between local suppliers would get fiercer, Hung said, as foreigncompanies want higher quality and cheaper parts.
MoreChinese companies have been present in Vietnam as they shift production fromChina to avoid US tariffs, according to Hung. Their products are of mediumquality but the prices are much cheaper.-VNS/VNA
"TheVietnamese automobile and motorbike industries have been very lively in thelast two decades and there is still room for further development," NghiemVan Hung, assistant manager at sales and marketing department, Inoac Vietnam CoLtd, told Vietnam News.
A largenumber of products are now produced and assembled in the country and foreignautomakers have moved their plants to Vietnam, he said.
Foreigncompanies have received preferential policies in terms of tax andadministrative work, so the number of foreign companies in Vietnam hasincreased, Hung added.
Mostforeign automakers come from Japan. Mitsubishi in 2018 inaugurated its firstassembly plant in the southern province of Binh Duong, becoming the seventhJapanese automaker moving production to Vietnam.
SomeIndonesian carmakers and part companies are considering moving their plants to Vietnamas well because they see potential in the Vietnamese market.
Accordingto Indonesian Ambassador to Vietnam Ibnu Hadi, auto and auto parts areIndonesia’s two biggest exports to Vietnam in terms of volume.
In thefirst four months of 2019, Vietnam imported nearly 58,300 cars in total, worth 1.3billion USD. Of the figure, Indonesian car exports accounted for more than12,700 units, worth 190 million USD.
Lastyear, Indonesian companies exported 289 million USD worth of cars to Vietnam. Thefigure is expected to reach 600 million USD this year.
Salesvolume of Mitsubishi Expander topped Indonesia’s car exports in the first fourmonths, with more than 17,600 car units. Of the figure, more than 3,700 unitswere exported to Vietnam.
Therefore,Indonesian companies are looking to expand their influence in Vietnam bysetting up offices and looking for local part suppliers.
Accordingto Prihatanto Agung Lesmono, president director of Astra Visteon Indonesia, hiscompany is looking for more tier-2 local suppliers with higher quality. AstraVisteon Indonesia has an office in Vietnam, known as Astra Visteon Vietnam CoLtd.
However,a number of Vietnamese part suppliers do not meet quality standards so theyneed improvement to meet the localisation requirements, he said.
But thecompetition between local suppliers would get fiercer, Hung said, as foreigncompanies want higher quality and cheaper parts.
MoreChinese companies have been present in Vietnam as they shift production fromChina to avoid US tariffs, according to Hung. Their products are of mediumquality but the prices are much cheaper.-VNS/VNA
VNA
