Auto parts manufacturers manage to reach world level
Looking to the future
To participate deeply in the global supply chain, Vietnamese enterprises have to improve their competitiveness, promote large-scale production and focus more on high tech products. In 2023, automobile sales reached 301,989 vehicles, dropping 25 percent compared to the previous year. As a result, manufacturers had to cut production and reduce imported vehicles, leaving quite big impacts on the supply chain.
The Government’s support policies are increasingly closer to automobile manufacturers |
A representative from THACO Industries said that in 2023, the group’s revenue from manufacturing auto components was estimated at nearly VND8.7 trillion, down 20 percent; and export revenue at US$105 million, down 75 percent compared to 2022.
In addition, domestic supporting industry enterprises are under great pressure from emerging enterprises, which have moved from China to Vietnam to seek their fortune. They have high technology and stable financial resources for quick production on a large scale.
Meanwhile, the situation of Vietnamese enterprises is not optimistic. Currently, in Vietnam there are only about 300 auto supporting industry enterprises of all economic sectors. Of those, there are about more than 40 automobile manufacturing and assembling enterprises; 45 enterprises manufacturing chassis and bodies; and 214 enterprises manufacturing auto components and spare parts...
Investment attraction
As new waves of FDI into Vietnam will continue to increase this year, the demand for components and spare parts for the automobile and motorbike industry will also increase, which means there will be more opportunities for domestic businesses.
To take advantage of the opportunity, Vietnam also needs to form capable leading enterprises in the industry, establish a number of concentrated automobile industry centers, strengthen links between automobile manufacturing and assembling enterprises, supporting industry enterprises, research and development establishments and training facilities to improve investment efficiency and specialization capacity.
According to Pham Tuan Anh, Deputy Director of the Vietnam Industry Agency under the Ministry of Industry and Trade (MoIT), recently, the MoIT has implemented solutions on the management and development of industrial clusters, putting emphasis on the role of trade promotion between domestic and international enterprises.
“The Government’s support policies are increasingly closer to enterprises. That is why some global major automobile manufacturers have shifted from importing to assembling cars in Vietnam,” Pham Tuan Anh said.
See also
Vietnam: A new bright spot in global electronics supply chain
15:47 | 22/10/2024 Support industries
Ha Nam seizes opportunities to boost supporting industry development
15:15 | 07/10/2024 Support industries
Supporting industries catch new wave to make breakthroughs
17:00 | 03/10/2024 Support industries
Supporting industries a barrier to attracting FDI
09:43 | 30/09/2024 Support industries
Positive transformation: Supporting industries take on new responsibility
14:03 | 28/09/2024 Support industries
Da Nang to become high-tech and supporting industry hub
08:15 | 28/09/2024 Support industries
See more news
Hung Yen Province prioritizes high-tech and supporting industries
14:42 | 27/09/2024 Support industries
HCMC boosts supporting industry development
17:25 | 26/09/2024 Support industries
Southeastern localities develop support industries to modernise economy
17:33 | 21/09/2024 Support industries
Developing supporting industries needs to be a priority
11:37 | 14/09/2024 Support industries
Vietnam to boost semiconductor development with US support
15:54 | 11/09/2024 Support industries
Keys to making breakthroughs in supporting industry
08:20 | 10/09/2024 Support industries
Linkage with foreign firms needed to develop Việt Nam's supporting industry
09:20 | 26/08/2024 Support industries
Vietnam an emerging hub in global smart manufacturing
10:56 | 20/08/2024 Support industries
Ninh Binh prioritizes high-tech and environmentally friendly projects
16:28 | 19/08/2024 Support industries
Supporting industries become more attractive
14:29 | 13/08/2024 Support industries
Seven strategic directions to lead the nation into a new era
17:04 | 05/11/2024 Infographic
WB, Switzerland help boost Viet Nam’s sustainable urban development
16:53 | 05/11/2024 Society
Finance ministry proposes extending environmental tax cut on fuel products in 2025
16:47 | 05/11/2024 Policy
Workshop looks to address environmental management issues in industrial areas
16:34 | 05/11/2024 Environment
PM visits President Ho Chi Minh relic site in Kunming
16:30 | 05/11/2024 News and Events
Multimedia
Seven strategic directions to lead the nation into a new era
17:04 | 05/11/2024 Infographic
Delicacy of Hà Nội’s autumn
11:29 | 04/11/2024 Lifestyle
Vietnam-Cuba traditional solidarity, special friendship
10:12 | 02/11/2024 Infographic
Vietnam expands FTA network
09:15 | 01/11/2024 Infographic
Vietnam – Qatar friendship and multifaceted cooperation
09:06 | 31/10/2024 Infographic
Finance ministry proposes extending environmental tax cut on fuel products in 2025
16:47 | 05/11/2024 Policy
NA deputies call for solutions to ensure the feasibility of drug prevention and control programme
17:33 | 03/11/2024 Policy
15th NA’s 8th session to further discuss legislative, inspection work next week
16:58 | 03/11/2024 Policy
Developing education, training to serve new era of nation: PM
09:57 | 03/11/2024 Policy
Efforts to bring electricity to remote villages of Ha Giang Province
15:15 | 04/11/2024 Energy
Vietnamese F&B industry works to catch up with green consumption trend
17:38 | 03/11/2024 Industry
PM calls for Qatar's support for energy development in Việt Nam
08:56 | 01/11/2024 Energy
Efforts made to create breakthrough in Vietnam's automobile industry
09:28 | 31/10/2024 Industry
Foxconn to invest US$80 million in Bắc Giang for chip manufacturing expansion
16:16 | 04/11/2024 Investment
Da Nang to invest additional 16 million USD into software park
17:19 | 03/11/2024 Investment
PM receives heads of leading investment firm, authority of Qatar
09:07 | 01/11/2024 Investment
Forum suggests suitable orientations for green development strategy in Lam Dong
15:44 | 31/10/2024 Investment
Krungsri proposes accelerating purchase of 50% of SHBFinance’s charter capital
15:46 | 05/11/2024 Finance-Banking
Finance ministry proposes two price management scenarios for year-end
10:11 | 04/11/2024 Finance-Banking
Banking sector prioritises support for import-export firms
16:35 | 02/11/2024 Finance-Banking
Smart Banking 2024 workshop and exhibition held
15:32 | 31/10/2024 Finance-Banking
Workshop looks to address environmental management issues in industrial areas
16:34 | 05/11/2024 Environment
More accurate forecasts at all levels needed to reduce coastal disaster risk
15:07 | 04/11/2024 Environment
Nearly-98-million-USD environment project inaugurated in Ninh Thuan
10:13 | 03/11/2024 Environment
Northern region to experience first cold weather of this winter
14:30 | 31/10/2024 Environment
Technology “key” to attract FDI
09:09 | 05/11/2024 Science - Technology
HCM City partners with Google for Education in digital transformation
14:47 | 04/11/2024 Science - Technology
Việt Nam develops 'purely Vietnamese' generative AI
09:45 | 01/11/2024 Science - Technology
Vietnam’s first semiconductor expo underway in HCM City
09:36 | 01/11/2024 Science - Technology
WB, Switzerland help boost Viet Nam’s sustainable urban development
16:53 | 05/11/2024 Society
VRA proposes over $7.2b for Lào Cai-Hà Nội-Hải Phòng-Quảng Ninh Railway project
09:22 | 05/11/2024 Society
Eastern section of $1.23b southern expressway will soon be opened for use
15:03 | 04/11/2024 Society
Vietnam aims to produce innovative medicines
14:53 | 04/11/2024 Society
190 businesses win Vietnam National Brand Award 2024
10:33 | 05/11/2024 Vietnamese Brands
Vietnamese AI firms have many chances of development
14:51 | 04/11/2024 Vietnamese Brands
Cooperatives play significant role in OCOP product development
14:45 | 04/11/2024 Vietnamese Brands
Cơ Tu ethnic’s farm produce debuts in supermarket system
09:08 | 31/10/2024 Vietnamese Brands
Calligraphy exhibition highlights literary masterpieces
10:53 | 05/11/2024 Culture
VN int’l fashion week Fall/Winter 2024 prepares to open
11:38 | 04/11/2024 Culture
Delicacy of Hà Nội’s autumn
11:29 | 04/11/2024 Lifestyle
$10-billion national target programme on cultural development officially proposed to parliament
18:02 | 02/11/2024 Culture
Time Out lists Vietnam among Top 5 Memorable Christmas Escapes in Asia
10:27 | 05/11/2024 Tourism
Foreign travellers' interest in northern regions still strong after typhoon
14:15 | 04/11/2024 Tourism
Ninh Bình Festival to boost historical heritages of VN’s former capitals
14:10 | 04/11/2024 Tourism
Halal tourism: tackling religious and cultural differences
17:57 | 02/11/2024 Tourism