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back to index backASIAtalk June,  2017


WardsAuto: Vietnam Playing Catch-Up in ASEAN Auto Sector

Vietnam faces tough going as it works to develop an upstream auto-parts manufacturing base, and meanwhile, regional liberalization through the ASEAN trade bloc is threatening the country’s vehicle-assembly segment.

In many ways, it is crunch time for Vietnam’s auto sector. Thanks to years of rapid economic growth, an increasing number of consumers are able to buy automobiles in a market traditionally dominated by motorcycles.

The government wants these consumers to buy Vietnamese – from the country’s well-established yet small assembly sector run by companies such as Truong Hai Automobile and Mekong Auto. It also wants this sector to build autos with Vietnamese-made parts.

Phong Quach, an analyst at Ipsos Business Consulting, says a 2014 government decree set a target that Vietnam’s automotive industry should source 35% of parts domestically by 2020 and 65% by 2035.

To read entire article, please click here.

Source: WardsAuto.com - GAI




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