Gov't policy gives auto industry much-needed boost
More than half a billion dollars in tax returns have been awarded to firms since 2017 in a bid by the Government to boost the country's auto industry and supporting industry, according to deputy director of the General Department of Vietnam Customs Luu Manh Tuong.
Workers assemble a car at a Toyota factory in Vietnam. (Photo tapchitaichinh.vn)
Hanoi (VNS/VNA) - More than half a billion dollars in tax returns havebeen awarded to firms since 2017 in a bid by the Government to boost thecountry's auto industry and supporting industry, according to deputy directorof the General Department of Vietnam Customs Luu Manh Tuong.
The tax incentives are in line with Government Decision 57/2020/NĐ-CP, apolicy package aimed at bolstering the development of the auto industry in thenext four years, he said.
While the tax returns may have hurt the State's budget collection in the shortrun, the benefits of growing the auto and supporting industries would bemore than enough to make up for it in the near future. The incentive wassaid to have secured more jobs, attracted more foreign investment and created aripple effect in the development of the country's industrial sector.
Nguyen Trung Hieu, a representative from the Vietnam Automobile Manufacturers'Association (VAMA), said the policy package gave the auto industry amuch-needed boost to catch up with the competition in Southeast Asia.
Hieu said the auto industry remained a large contributor to the State's budgetwith billions of dollars in revenue and also employed hundreds ofthousands of workers.
Luong Duc Toan, deputy head of the department of industrial manufacturing underthe Ministry of Industry and Trade, said the auto industry had seen major leapsforward in recent years. By the end of 2019, Vietnam was home to more than 40auto manufacturers with several world-leading brands including Ford, Mercedesand Toyota. Domestic production had been able to supply up to 70 percent oflocal demand for nine-seater or smaller vehicles while made-in-Vietnam productshad found their way to markets in the region such as Thailand and thePhilippines.
However, there were still shortcomings in the auto industry, Toan said, asthe industry remained entirely dependent on a few global corporations. Inaddition, domestic firms possessed no technologies for the production of keyauto parts such as engines, control systems and transmission gears.
As a direct result of the absence of a large network of auto parts suppliers, Vietnam’slocalisation rate was poor compared with other countries in the region./.
Prime Minister Nguyen Xuan Phuc has instructed the Ministry of Finance (MoF) to look at taxes and fees related to automobile manufacturing and assembly in order to help the sector grow.
Management agencies and businesses should consider customers the centre of the domestic auto industry to spur the sector’s growth in the context of international integration, experts have suggested.
Ford Vietnam has announced an additional investment of 82 million USD (over 1.9 trillion VND) to expand its automobile factory in the northern province of Hai Duong.
The automobile market is expected to boom this year as the Government mulls a number of favourable policies to help reduce costs, improve demand and increase output.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Outcomes of ABAC III will shape ABAC’s final policy recommendations to be submitted to the ABAC-APEC leaders’ dialogue, scheduled to take place in the Republic of Korea this November.
This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
Workers assemble a car at a Toyota factory in Vietnam. (Photo tapchitaichinh.vn) 
