Developing domestic automobile industry to counter importsIncreasing the value of domestic production and promoting the automobile supporting industry must not depend on foreign direct investment (FDI) firms. Vietnam needs a reasonable policy to protect and develop domestic automobile industryRemoving import taxAccording to an evaluation report of the Ministry of Industry and Trade, the average localisation rate in the domestic automobile industry is only 7-10 per cent, much lower than the 65-70 per cent in regional countries and 80 per cent in Thailand. Currently, Vietnam is considering approving automobile firms to enhance car imports and removing the Vehicle Type Approval (VTA) certificate and other tight requirements. In order to develop the automobile industry, Dong said that Vietnam needs a strategy to protect the domestic industry while limiting car imports. The representatives of Vinafast also confirmed purchasing domestically-manufactured components and spare parts as well as support and collaborate with manufacturers and part suppliers to develop the automobile industry of the country.

Source: VietNamNet News March 05, 2018 10:18 UTC