VAMA suggests setting up “strategic car” research team

The Vietnam Automobile Manufacturers’ Association (VAMA) has proposed setting up a research team with the aim of setting the strategic car line for Vietnam.

The chosen strategic vehicle line will eventually receive a whole array of tax breaks and incentives to help it be developed, reach the market and sell well.

As a result, VAMA has suggested setting up a research team including representatives from the Ministry of Industry and Trade (MOIT), Ministry of Finance (MOF), Ministry of Transport (MOT), Ministry of Science and Technology (MST), Ministry of Planning and Investment (MPI) and VAMA itself.

In its reply to a Government document requesting to suggestions on the development of a strategic car line for Vietnam, VAMA says the majority of the association agree that a definitive strategic car policy is required.  This would help define the long term development of the automobile industry and other supporting industries in Vietnam

Prior to that, in mid November 2009, MOIT submitted a plan to the Prime Minister to choose a 6-9 seater MPV with a cylinder capacity of less than 1.5L which are able to meet Euro 2 standards on exhaust fumes.

However, VAMA believes the defining the strategic car line is a very important issue, therefore, suggestions by MOIT should be thoroughly considered and discussed. VAMA says the research team could make its suggestions by the end of the first quarter of 2010.

MOIT’s original suggestion of 6-9 seater vehicles with the cylinder capacity of 1.5L as the strategic car line has not been applauded by all experts. They said it would be impossible to develop a car with so many seats (6-9 seats) but with low cylinder capacity. They say such a car would perform badly under road conditions in Vietnam.

Representatives from MOIT stressed that to date it has only made suggestions on the strategic car line – not a final decision. Meanwhile, opinions still vary.  All automobile manufacturers are pressing for existing models.

Others believe it is highly possible the final decision about the strategic car line will not be made as planned by MOIT.

The idea of a strategic car line was initiated by Toyota Vietnam in June 2009.

VietNamNet/VnMedia

Tags: Vietnam automotive industry