|Vichai Pirathiyut, president of the Thailand Automotive Institute, said Viet Nam and Thailand has different auto industry policies, so both sides should cooperate rather than compete. —VNS photo Xuan Huong.
HCM CITY (VNS) — With Viet Nam's low labour costs and young workforce, the automobile industry has good potential to develop here, but the right strategy is needed, an auto industry seminar heard in HCM City on Thursday.
Vichai Pirathiyut, president of the Thailand Automotive Institute, said due to appropriate stimulus policies and development strategies the Thai auto industry was growing very strongly.
Last year his country had produced 1.8 million cars, exporting a million.
Viet Nam's automobile industry had achieved significant growth in terms of both production and sales in the past few years, and would produce 220,000 cars by 2020 and 1.5 million by 2035.
Though the Vietnamese auto industry was a late starter compared to Thailand, the Government's efforts to develop infrastructure, low labour costs and a young workforce indicated bright prospects for development, he said.
But the industry needed to develop a more robust supply chain, he said.
Harrison Liu, general director of Sanyang Industry, said to develop the industry the Government had to address the two biggest issues – how to stimulate demand and drawing a clear development strategy for the industry.
Pirathiyut suggested that Vietnamese automobile producers should gather under an association to combine strength and propose to the Government measures to boost the sector.
Thai producers had advanced technologies that would benefit Vietnamese enterprises while the two countries had different auto industry policies, he said, calling on the two sides to co-operate rather than compete.
He said his institute – whose vision is to be an organisation of automotive knowledge and expertise — would join hands with Reed Tradex to organise an "Automotive Summit" on the sidelines of the 2015 Manufacturing Expo to be held in Bangkok from June 24 to 27 to provide information about likely future global industry trends. — VNS