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Hyundai asked to increase localisation rate to 40 per cent

Update: February, 25/2019 - 14:30
An assembly line at Hyundai Thành Công Automobile Factory in northern Ninh Bình Province. — VNA/VNS Photo Thống Nhất
Viet Nam News

HÀ NỘI — Deputy Prime Minister Trịnh Đình Dũng has asked South Korean carmaker Hyundai Motor Company to promote technology transfer to its local partners in Việt Nam and increase its localisation rate to a minimum of 40 per cent.

At a meeting with Jin Haeng Chung, Hyundai Group’s vice chairman on Saturday, Dũng affirmed that developing the automobile industry is a key policy in Việt Nam’s industrialisation strategy with priorities given to local automobile production and consumption.

New policies would be developed based on principles of promoting consistency, continuity, transparency, predictability, competitiveness and attractiveness to ensure the development of a sustainable automobile manufacturing industry, he added.

He affirmed that Hyundai and big South Korean automobile manufacturers could further join global value chains by taking advantage of Việt Nam in terms of its deep international integration, competitive input costs and big and diversified domestic market.

Vice Chairman Chung said Hyundai has serious plans for investment, technology transfer and automobile production development in Việt Nam.

Currently, Hyundai cars are assembled in Việt Nam. The firm co-operates with Thành Công Group to import components to produce models such as the Santa Fe, Tucson or i10.

Meanwhile, another brand, Kia (owned by Hyundai Group), was also transferred to Trường Hải-Thaco for assembly at Chu Lai economic zone. Kia models made in Việt Nam include the Morning, Cerato and Sorento.

Hyundai light trucks and heavy trucks are also assembled and manufactured in Việt Nam by Thaco and Thành Công. Most of Kia’s trucks and passenger cars in Việt Nam have achieved high localisation rates. For many cars, only the engines are imported, while the chassis, electronic equipment, seats and paint are locally manufactured. — VNS

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