Việt Nam boosts FDI attraction in automotive industry

VIETNAM, August 30 – HÀ NỘI — Việt Nam will strive to attract big business and high-tech companies, said Nguyễn Anh Tuấn, deputy director of the Foreign Investment Agency of the Ministry of Planning and Development. ‘Investment.

At the same time, the country will prioritize investment projects in high technology, supporting industry and innovation in the digital economy, especially in the automotive industry, to create favorable conditions for that Vietnamese companies participate in the value chain.

Nguyễn Thị Thu Hà, managing director of Invest Global, said that with a population of nearly 100 million and favorable natural and geographical conditions, Việt Nam has great potential in the automotive industry.

She added that it is an industry that the Vietnamese government has prioritized for development, hoping to build a strong Vietnamese auto industry and make an important contribution to the economy.

However, compared to other countries in the region, the number of Vietnamese suppliers in the automotive industry was still very low and only a few domestic suppliers could participate in the supply chain of automotive manufacturers and assemblers in Việt Nam.

Đặng Hoàng Mai, a representative of the Việt Nam Institute of Strategy and Policy for Industry and Trade, said that Việt Nam has the potential to develop the electric vehicle (EV) market in the future because the Current car ownership rate in Việt Nam was at 23 cars per 1,000 inhabitants. This figure was only equal to 10% of Thailand and 5% of Malaysia.

With increasing income levels and improving infrastructure, sales and production of the automotive industry are expected to increase in 2021-2030.

However, contrary to the upward trend in car consumption, companies operating in the auto industry, especially the auto manufacturing support industry, did not experience the expected growth, Mai said.

The localization rate for personal cars up to nine seats is low at less than 20%, of which Thaco reaches 15-18%. Toyota Việt Nam is the highest with 37% (for Innova models).

This number is much lower than in Thailand, Indonesia and Malaysia.

Opportunity for Indian Investors

As the world and the region have a great influence on many manufacturing industries, the semiconductor chip industry and the automobile industry, Vietnamese companies expected to have more partners and component manufacturers assembled in the country, Tuấn said.

As the sixth largest economy in the world, India’s total investment capital in Việt Nam accounts for only 0.2% of the total FDI in which 139 countries and territories have invested.

The deputy director noted that the opportunity to promote cooperation and investment between the two sides is huge, especially with Việt Nam boosting FDI inflows in the automotive support industry.

During a recent automotive business meeting between Việt Nam and India, he said the investment cooperation between the two countries is still not up to the potential.

Pranay Verma, Indian Ambassador to Việt Nam, focused on automotive suppliers.

The Association of India (ACMA) was the main association in India with over 800 members, contributing 85% of the sales of the Indian auto parts industry.

Through the visit to Việt Nam, the ACMA wished to explore investment, trade and business opportunities in Việt Nam, the ambassador said.

He added that it is a great opportunity for companies from both countries to find partners, exchange business cooperation opportunities and learn new technologies, equipment and spare parts in the industry. automobile. —VNS

Keith P. Plain