Tuesday, May 21 2019

VietNamNews

Malaysian firms explore investment in VN’s car manufacturing industry

Update: April, 19/2019 - 08:23

 

A view of a VInFast plant, expected to go operational in June. — Photo vneconomy.vn

HÀ NỘI — Fifteen Malaysian firms are visiting Việt Nam to explore investment opportunities in the country’s car manufacturing industry.

Malaysian Ambassador to Việt Nam Dato Mohd Zamruni Khalid said at a workshop held on Thursday to discuss business opportunities between Việt Nam and Malaysia in the automobile component industry that Việt Nam was an attractive market for car manufacturing given its young population and favourable investment policies.

He said Malaysian firms expected to co-operate with partners in Việt Nam to explore the market and establish strategic business relationships.

Deputy Chairman of the Việt Nam Chamber of Commerce and Industry (VCCI) Hoàng Quang Phòng said that with ASEAN Trade in Goods Agreement (ATIGA), Việt Nam would become a promising destination for car manufacturing in the region.

Phòng said the workshop, which was organised by the VCCI and the Malaysia External Trade Development Corporation, would be a chance for firms from both countries to share experiences and seek co-operation opportunities in an industry which was seen as one of Malaysia’s strengths.

Lương Đức Toàn from the Department of Legal Affairs under the Ministry of Industry and Trade said Việt Nam imported more than US$3 billion of automobile parts and components each year.

Việt Nam’s automobile industry still had a low local procurement rate, Toàn said, adding that it was vital for domestic car manufacturers to increase their rates to improve competitiveness, especially because under ATIGA, import taxes on cars from other ASEAN countries to Việt Nam were eliminated.

Toàn said although the car manufacturing industry in Việt Nam was newer than that of regional countries and was dealing with significant competition, it had developed rapidly over the past two years.

In 2018, more than 250,000 cars were manufactured and assembled in Việt Nam.

Around 40 firms operate in car assembly and manufacturing in the country, but most of them were of small and medium sizes, Toàn said.

Toàn said it was critical for Việt Nam to engage in the global value chain of the car manufacturing industry, adding that focus should be placed on developing a healthy domestic car market, promoting car manufacturing and assembly, and developing an industry to supply parts. — VNS

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