Auto industry ‘a priority’

The Government should encourage the development of auto manufacturing centres in VietNam to help strengthen the domestic auto industry, according to a seminar held in Chu Lai Open Economic Zone, central Quang Nam Province yesterday.

While Viet Nam has auto manufacturing plants across the country, these factories are scattered, a key weakness in plans for the country to become an auto-producing nation.

A raft of challenges to the domestic auto sector were discussed at the seminar, which attracted hundreds of participants from domestic auto producers and the ministries of industry and trade, planning and investment and transport.

Car sales up in March

HA NOI — Car sales recovered in March after three months’ decline, according to the Viet Nam Automobile Manufacturers Association (VAMA).

Total sales by VAMA members reached 9,513 units in March, an increase of 1,624 units against February and a 1 per cent increase over the same period last year, said VAMA representative Pham Anh Tuan.

In the first quarter of this year, sales reached 27,896 units, a surge of 30 per cent against the same period last year. Of this, sales of commercial vehicles surged 16 per cent, multi-purpose vehicles 34 per cent and sedans 47 per cent.

This recovery in the domestic car market reflects a positive outlook by consumers after a period of price increases, Tuan said. It was also due to a great demand for commercial vehicles.

Total sales of commercial vehicles reached 4,648 units in March, an increase of 1,125 units over February.

Car dealers said that the growth of commercial vehicle sales in March was as usual because transport companies continued to buy after Tet.

In March, domestic auto maker Truong Hai had the largest output of 3,085 units but Toyota was still had the largest sales – 2,357 units, said Tuan. – VNS

Speaking at the event, Le Duong Quang, deputy minister of Industry and Trade, said the auto industry was considered as a priority for development, and as a crucial contributor to the country’s industrialisation and modernisation process.

Quang said a development plan for Viet Nam’s auto industry to 2020, with a vision to 2030, should be considered as soon as possible, as it would form the basis of the domestic auto industry’s development in the near future and compliment the nation’s socio-economic development to 2020.

Speaking at the seminar, Pham Van Liem, deputy director of the Institute for Industry Policy and Strategy under the Ministry of Industry and Trade, said the plan should be considered carefully to satisfy the country’s integration requirements and meet domestic consumers’ demands.

Liem said the auto industry’s development orientation should be focused on producing one or two strategic automobile models to supply domestic demand and help develop supporting industries.

He added that development should be based on co-operation among domestic, ASEAN and major global auto producers, and urged a national mechanical auto centre to be set up to help attract investors to the sector.

Liem also suggested that all economic sectors should be encouraged to invest in auto support industries, especially for auto engines, parts and accessories.

Co-operation and transfer of advanced technologies with multinational companies should be also encouraged, he added.

According to the General Statistics Office, the country had 397 automobile makers by the end of 2009. Those manufacturers have a total assembly capacity of 418,000 units per year with 215,000 trucks and 157,000 nine-seater cars per year.

The industrial production value of the auto industry was VND19.956 trillion (US$964 million) in 2009, accounting for 2.86 per cent of the nation’s total production value, according to the office.

In its first outing, the seminar was organised by the Ministry of Industry and Trade, Quang Nam’s People’s Committee and Truong Hai Auto Joint Stock Company.—VNS

Tags: Vietnam automotive, Vietnam automotive industry, Vietnam autos market