AloTrip

Where do you travel?

trustpilot

Cars made in Vietnam will account for 70% of domestic market

Tue, 29 Jul 2014. Last updated Thu, 25 Jun 2015 08:46

Related stories

The Prime Minister Nguyen Tan Dung agrees with the development plan of Vietnam automotive industry until 2020; Vietnam will produce 227.000 cars and to 2025 will reach appropriately half a million vehicles, accounting for 60%-65% of the domestic market.

The Prime Minister Nguyen Tan Dung has signed a decision approving the development plan of automotive industry of Vietnam to 2020, vision to 2030 with the aim of developing the automotive industry as an important industry of the country. The aim of the automotive industry is going to meet the maximum demand of the domestic market for vans, buses and some common specialized vehicles; to become a provider of spare parts, accessories and some detail sets having the high value in the automotive production chain of the world.

The plan approved by the Prime Minister has outlined several specific figures on the proportion, the number of vehicles manufactured and assembled in the country compared to the total domestic demand, expected vehicle production; expected export production finished of vehicles and parts. Regarding the expected proportion of the number of vehicles manufactured or assembled in the country compared to the total domestic demand, in particular, the 9-seat cars will account for 60% in 2020, 65% in 2025 and 70% in 2030. The cars having more than 10 seats will account for 90% in 2020 and 92% in 2030. The vans will account for 78% in 2020 and 80% in 2030. The specialized vehicles will account for 15% in 2020 and 20% in 2030.

 

Car manufacture in Chu Lai industrial zone

 

In addition, the expected vehicle production in 2020 will reach 227.000 units; in 2025 will be more than 466.000 units and in 2030 will reach nearly 863.000 units (including 452.000 cars below 9 seats and more than 356.000 vans). The number of finished vehicles and parts for export is expected to export 20.000 units in 2020 and 30.000 units in 2030. Exports of components and spare parts reach $ 4 billion in 2020 and $ 6 billion in 2030. Up to 2020, the industry support for manufacturing vehicles will be essentially formed. Striving to meet 30-40% (in value) demand of components, spare parts in the production and assembly of cars in the country, gradually participating in the supply system components and spare parts of the global value chain of the world automotive industry. By the period from 2012-2025, the support industry continues developing to meet 40-45% the demand of the market, in the period from 2026-2030 ensures to supply more than 50% (in value) the demand in the domestic market, thrives to become an important provider of some components and spare parts for the automotive industry in the region and the world.

In terms of policy and measures, the oriented scheme applies the highest incentives for projects producing environmentally friendly vehicles. The domestic enterprises participating in the global supply chain in manufacturing, exporting components, spare parts and finished vehicles are applied steady export credit policy; enjoyed the preferential regime of the National Trade Promotion Program, favored under the key mechanical program; project manufacturing automotive components and spare parts is loaned with the low-interest state.

 

A car exhibition 2014 in Vietnam

 

For the consumer sector, the scheme requires to review and adjust the tax policy and cost towards facilitating development of the automotive industry to meet the needs of automobile use of the economy and the people along with the synchronous development of transport infrastructure and environmental protection requirements.

According to the scheme, the mid-range and short range passenger cars from 16 to 24 seats will be applied the lowest tax rate, environmentally friendly vehicles will be applied the preferential and passenger vehicles having 9 seats, with a capacity of 3.0-liter engine will be applied the highest tax rate and issued the high environmental cost for them. The scheme requires consistent implementation of policy system will be issued in minimum 10-year period, consistent with the trend of integration and give confidence to investors and manufacturers

  • View
    6484
  • Share
    0
  • Comment
    0
  • 0
  • 0
  • 0
Great potentials seen in Vietnam automotive industry
Great potentials seen in Vietnam automotive industry

It is estimated that there are approximately 4% Vietnamese people owning a private car. According to a forecast of EuroCham, with impressive economic growth rate, Vietnam automotive industry has enormous potentials to develop.

Vietnam Airlines sets IPO date in September
Vietnam Airlines sets IPO date in September

IPO is Initial Public Offering in which a company sells its shares to the general public for the first time. Under the plan of equitisation of State enterprises, Vietnam Airlines intends to perform its IPO in September 2014.

National action plan for Vietnam green growth strategy
National action plan for Vietnam green growth strategy

National action plan for Vietnam green growth strategy has been approved recently. This strategy aims to reduce greenhouse gases emissions, develop infrastructure, cope with climate change and drive economic growth in a sustainable manner.

Thu Thiem new urban area of Ho Chi Minh City in future
Thu Thiem new urban area of Ho Chi Minh City in future

Ho Chi Minh City decided to expand center area including the whole Thu Thiem new urban area. There are accordingly some changes in Ho Chi Minh districts as well as the city urban area.

Da Nang takes master plan on urban development
Da Nang takes master plan on urban development

Da Nang authority takes master plan to make the city into a large urban area of Vietnam and a major socio-economic hub of the Central. The plan has been recently declared to the Prime Minister for approval.

Dalat worries nuclear reactor hitting tourism
Dalat worries nuclear reactor hitting tourism

Vu Van Ninh, the deputy of Prime Minister has asked authorities of central part of Vietnam to consider proposal of Lam Dong Province on relocating the future nuclear reactor area outside the resort town in Dalat in years to come.

Cat Bi International Airport to be expanded in 2015
Cat Bi International Airport to be expanded in 2015

Project of expanding Cat Bi International Airport is one of projects on key transportation development in Hai Phong, and it is expected to finish in 2015. This project has a total capital of 3,600 billion dong.

Investment in Vietnam appeals transnational corporations
Investment in Vietnam appeals transnational corporations

Investment in Vietnam has witnessed a rapid growth in recent years with a large amount of capital from transnational corporations, of which many have decided to build basis of mass production and distribution.

Vietnam economy forecasted to grow in 2014
Vietnam economy forecasted to grow in 2014

As global economy is having positive changes, Vietnam economy will be definitely boosted. It is expected to increase 5.6 percent in this 2014 thanks to the recovery of the United States and Eurozone in banking reforms.

Vietnam stock market receives huge investment from Singapore
Vietnam stock market receives huge investment from Singapore

Vietnam is becoming a potential destination for foreign investors. The clearest evidence is that Vietnam stock market continuously receives positive information from Singaporean investors in the early months.

Vietnam fruit appeals world market
Vietnam fruit appeals world market

Being supported by a favorable weather and climate condition, Vietnam fruit becomes an attractive product in world market, especially in the US. Recently, Vietnam is expanding fruit export to some strict markets as Japan, New Zealand and Taiwan, etc.

Breakthroughs in Vietnam ASOCIO ICT Summit 2014
Breakthroughs in Vietnam ASOCIO ICT Summit 2014

Two days ago (Oct 29, 2014) in Hanoi, Vietnam ASOCIO ICT Summit 2014 took place. The topic of this summit is "IT - new methods of socio-economic development and agricultural restructure".

Vietnam Japan ICT Forum held in Hanoi
Vietnam Japan ICT Forum held in Hanoi

Some days ago, Ministry of Information and Communication of Vietnam and Japan Ministry of Internal and Communication held Vietnam Japan ICT Forum 2015. Through the cooperation the quality of Vietnam post will be improved significantly.

Mekong Delta fishery sector to be developed
Mekong Delta fishery sector to be developed

According to the Southwest Steering Committee, Mekong Delta economy strives to raise the value of fisheries sector to VND 46,000 billion, equal to $ 3 billion, an increase of 4.1 percent compared to that of 2013.

France cooperates to push Ho Chi Minh City economy
France cooperates to push Ho Chi Minh City economy

In the time coming, Ho Chi Minh City economy will be enhanced with the cooperation of France. By dint of the cooperation, both two countries get benefits from each other.

Vietnam - Mexico cooperation on higher education
Vietnam - Mexico cooperation on higher education

Vietnam - Mexico cooperation on higher education has been agreed by both sites of Vietnam and Mexico. Accordingly, there will be a multiple cooperation between two countries to develop a better their education system.

Start Phan Thiet Airport project
Start Phan Thiet Airport project

Recently, Phan Thiet Airport was inaugurated to construct under a BOT project. It is the first airport in Vietnam applies the construction form. The airport is expected to contribute greatly to the socio-economic development of Binh Thuan.

Exciting activities in Vietnam Family Day 2015
Exciting activities in Vietnam Family Day 2015

With the theme of Central Highland Culture with matriarchy tradition, activities of Vietnam Family Day 2015 will take place from 26-28 June 2015 at Vietnam National Village for Ethnic Culture and Tourism to establish and improve a stable society.

Vincom Center Halong coming soon
Vincom Center Halong coming soon

After opening a series of commercial center in Hanoi and Ho Chi Minh City, Vingroup will launch Vincom Center Halong in October 2014. This is one of modern commercial centers in Vietnam following the international standard.

Vietnam economy jumps 2 notches in global competitiveness
Vietnam economy jumps 2 notches in global competitiveness

According to the latest report of World Economic Forum (WEF), Vietnam economy has jumped 2 notches on the ranking of global competitiveness. The new position of Vietnam is 68.

Landmark 81 – the highest building in Vietnam
Landmark 81 – the highest building in Vietnam

On December 13th, an 81-storey skyscraper named The Landmark 81, which belongs to luxury urban area Vinhomes Central Park was started construction by Vingroup. It is expected that this highest building in Vietnam will be inaugurated in 2017.

Starbucks Vietnam opens three stores in Hanoi
Starbucks Vietnam opens three stores in Hanoi

Starbucks will open its three coffee shops in Hanoi in the effort to conquer the demanding palates of residents in this city. According to a representative of Starbucks Vietnam, the first three stores will be opened in prime locations of Hanoi.

Ho Chi Minh City opens 2nd McDonalds restaurant
Ho Chi Minh City opens 2nd McDonalds restaurant

After the success of the first restaurant on Dien Bien Phu Street, District 1, McDonalds Ho Chi Minh City will open the second on May 16th. The new restaurant is located near Ben Thanh Market, on Tran Hung Dao Street.

Da Nang becoming the most worth-living city in Vietnam
Da Nang becoming the most worth-living city in Vietnam

39 years after the Vietnam Liberation Day, Da Nang has developed significantly in all aspects. More importantly, Da Nang City has leave impression on tourists and residents as the most worth-living city in Vietnam.

Vietnam economy forecasted to grow in 2014
Vietnam economy forecasted to grow in 2014

As global economy is having positive changes, Vietnam economy will be definitely boosted. It is expected to increase 5.6 percent in this 2014 thanks to the recovery of the United States and Eurozone in banking reforms.

Vietnamese middle class increases most rapidly in Asia
Vietnamese middle class increases most rapidly in Asia

According to a recent survey conducted by ANZ, it is reported that Vietnamese middle class increases most rapidly in Asia, about 2 million Vietnamese joining the middle-class of Vietnamese society every year.

Asia Park Da Nang begins forthcoming operations
Asia Park Da Nang begins forthcoming operations

Sun Group Corporation recently has celebrated groundbreaking ceremony to construct Asia Park Da Nang cultural park and recreation on 2/9 street with a total investment of $ 200 million.

Thu Thiem new urban area of Ho Chi Minh City in future
Thu Thiem new urban area of Ho Chi Minh City in future

Ho Chi Minh City decided to expand center area including the whole Thu Thiem new urban area. There are accordingly some changes in Ho Chi Minh districts as well as the city urban area.

Ho Chi Minh Vincom Center will open Kids World
Ho Chi Minh Vincom Center will open Kids World

The second Kids World will be opened on Dong Khoi Street by Ho Chi Minh Vincom Center, on April 25th. With a scale of more than 5000 square meters, Kids World is expected to be the paradise for children.

Attractive activities for Children Day in Hanoi
Attractive activities for Children Day in Hanoi

June 1st has been chosen as the International Children’s Day since 1950. On this occasion annually, a large number of attractive activities for Children Day in Hanoi will be celebrated in several attractions and amusement parks across the city.