Suitable incentives are essential to enhance the competitiveness ofenterprises in the support industry to develop the domestic automotivesector, according to Chairman of the Vietnam Federation of CivilEngineering Association Do Huu Hao.
Hao, whois also former Deputy Minister of Industry and Trade, highlighted thepotential to expand the domestic automotive market with its 90 millionpeople.
He stressed the need for the domesticautomobile industry to enhance its competitiveness as integrationencourages importing assembled vehicles in the regional countries withzero percent tariffs.
The most efficient way forlocal businesses to join the global production chain is to connect withrenowned international brands in the support industry, Hao said.
President of the Xuan Kien Automobile Joint Stock Company (Vinaxuki)Bui Ngoc Huyen called for more specific tax and financial incentives. Heconfidently stated that with right tax incentives and credit from theState, Vinaxuki can raise the domestic manufacturing rate to 50 percentand build “Made-in-Vietnam” passenger cars and trucks for export.
The company has invested more than 600 billion VND(28 million USD) in a number of projects to produce automobile spareparts, Huyen said.
They are expected to enhancethe competitiveness of Vinaxuki products in a number of product lines by2018, including pick-up trucks, cars, taxis and up to 28-seat publicvehicles, he added.
Huyen also expressed hishope that incentives would be provided to domestic manufacturerstargeting low-income consumers.
In August lastyear, the Ministry of Industry and Trade introduced a new strategy andplan for the automotive industry, but many of the relevant policies andmechanism are still pending.
At the same time,foreign-invested enterprises in the automobile industry are concernedabout their future operation once import tariffs in Southeast Asiareduce to zero percent in 2018.
Toyota has saidit may stop manufacturing and assembling in Vietnam and instead importfinished products from regional countries.
Many FDI businesses may withdraw from the industry if Vietnam cannot issue suitable and specific assistance.
According to Vietnam Customs, more than 71,000 vehicles were importedin 2014, up 102 percent year on year and the highest ever.-VNA
Hao, whois also former Deputy Minister of Industry and Trade, highlighted thepotential to expand the domestic automotive market with its 90 millionpeople.
He stressed the need for the domesticautomobile industry to enhance its competitiveness as integrationencourages importing assembled vehicles in the regional countries withzero percent tariffs.
The most efficient way forlocal businesses to join the global production chain is to connect withrenowned international brands in the support industry, Hao said.
President of the Xuan Kien Automobile Joint Stock Company (Vinaxuki)Bui Ngoc Huyen called for more specific tax and financial incentives. Heconfidently stated that with right tax incentives and credit from theState, Vinaxuki can raise the domestic manufacturing rate to 50 percentand build “Made-in-Vietnam” passenger cars and trucks for export.
The company has invested more than 600 billion VND(28 million USD) in a number of projects to produce automobile spareparts, Huyen said.
They are expected to enhancethe competitiveness of Vinaxuki products in a number of product lines by2018, including pick-up trucks, cars, taxis and up to 28-seat publicvehicles, he added.
Huyen also expressed hishope that incentives would be provided to domestic manufacturerstargeting low-income consumers.
In August lastyear, the Ministry of Industry and Trade introduced a new strategy andplan for the automotive industry, but many of the relevant policies andmechanism are still pending.
At the same time,foreign-invested enterprises in the automobile industry are concernedabout their future operation once import tariffs in Southeast Asiareduce to zero percent in 2018.
Toyota has saidit may stop manufacturing and assembling in Vietnam and instead importfinished products from regional countries.
Many FDI businesses may withdraw from the industry if Vietnam cannot issue suitable and specific assistance.
According to Vietnam Customs, more than 71,000 vehicles were importedin 2014, up 102 percent year on year and the highest ever.-VNA
