Seminar discusses auto industry

The establishment of an auto manufacturing and support hub in central Viet Nam’s Chu Lai economic zone was discussed at a seminar held by the Ministry of Industry and Trade in Ha Noi on Tuesday.

The seminar, which sought to gather opinions from relevant bodies on the second draft of Viet Nam’s auto development strategy, attracted many policy-makers and hundreds of participants from the auto industry.

According to the draft, the domestic auto industry would focus on producing one or two strategic automobile models to satisfy demand and develop support industries.

It aims to provide around 70 and 74 per cent of automobiles for the domestic market by 2015 and 2030 respectively, while also trying to make auto production a key Vietnamese industry by 2020.

The eventual policy will have to fulfil Viet Nam’s commitments to the World Trade Organisation.

Furthermore, businesses investing in auto parts in Chu Lai will be given many priorities regarding land and corporate tax.

Several participants said that the establishment of an auto centre at Chu Lai Open Economic Zone in Quang Nam Province was unreasonable and unnecessary.

Bui Ngoc Huyen, general director of Xuan Kien Vinaxuki JSC, said that the soft policies should not only apply to auto manufacturers who set up their factories at Chu Lai.

“All auto manufacturers nationwide should be allowed to enjoy the policies,” he said.

He also said that auto centres should be developed based on the existing manufacturing sites such as Bac Ninh, Hung Yen, Hai Duong, Long An, Binh Phuoc and Dong Nai, adding that to develop the auto industry, investors must own sophisticated technology and abundant capital. Therefore, Chu Lai is not an ideal site for all auto manufacturers.

The seminar also discussed possible challenges to the domestic auto sector.

Representative from the Ministry of Planning and Investment Nguyen Hoang Thong said that authorities should review the current trend of the auto industry in order to help it develop in a sustainable way.

Licence grants for new auto assembly factories should be reduced as the country has too many already, Thong said, adding that more favourable policies should be enacted to help all businesses involved in the auto development strategy.

Pham Manh Cuong, an expert from the Ministry of Transport, said the draft did not mentioned any requirements regarding technology, infrastructure or transportation for the auto industry.

Cuong emphasised that the new strategy should be based on the current strategy in order to take advantage of the capital already invested.

Participants also requested that the strategy include transparent tax policies.

In response, Deputy Minister of Industry and Trade Le Duong Quang asserted that the second draft will feature soft policies for the entire auto industry, not only for businesses in Chu Lai. — VNS

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