According to this strategy, the target set for 2035 is that the total vehicle output will reach about 1,531,400 units, of which 9-seat vehicles will be about 852,600 units, 10-seat vehicles or more will be about 84,400 units, trucks will be about 587,900 units, and specialized vehicles will be about 6,500 units. The proportion of domestically assembled vehicles accounts for about 78% of domestic demand.
Regarding the development of supporting industries, by 2020, the supporting industry for automobile production will be basically formed; striving to meet about 35% (in value) of the demand for components and spare parts for domestic automobile production and assembly. In the period of 2026 - 2035, it will meet over 65% of the demand for components and spare parts for domestic automobile production and assembly. The strategy targets that by 2035, the total number of exported vehicles will reach about 90,000 units.
To achieve the above objectives, the Strategy has provided specific directions such as identifying and establishing strategic partners, encouraging investment in projects large enough to create a market for supporting industries; encouraging the production of environmentally friendly vehicles (fuel-efficient vehicles, hybrid vehicles, biofuel vehicles, electric vehicles, etc.), meeting emission standards according to the roadmap approved by the Prime Minister.
The Ministry of Industry and Trade believes that in the coming time, the supporting industry will approach and apply technology to manufacture important parts and components such as transmissions, gearboxes, engines, car bodies, etc. for several types of vehicles; strengthen cooperation with major automakers to select types of spare parts and components that Vietnam can produce to take on the role of a link in the global production and supply chain, on that basis, invest in advanced technology and produce for export.
Although it plays an important role in the development of the automobile industry, the supporting industry still faces many difficulties.
At the conference of the Government Standing Committee working with businesses on solutions to contribute to the country's socio-economic development held on September 21, Mr. Tran Ba Duong - Chairman of the Board of Directors of Truong Hai Group Joint Stock Company (THACO) - made recommendations related to promoting the automobile manufacturing industry using clean energy and the supporting industry.
THACO Chairman said that the supporting industry does not have a clear strategy. The mechanical engineering sector is deeply embedded in industrial life and has a pervasive nature, so the Government should consider this an opportunity to develop Vietnam's basic industry as well as exports to have support policies.
The main solution proposed is to form a number of concentrated automobile industrial centers/clusters based on the organization and rearrangement of production; promote cooperation and linkage between automobile manufacturing and assembling enterprises, supporting industry enterprises, research and development establishments and training establishments of all economic sectors to improve investment efficiency and enhance specialization capacity... this will be the basis for the automobile industry to soon complete the development strategy set forth by the Government.
The Ministry of Industry and Trade also said that the localization rate for personal cars with up to 9 seats is still low, the target is 30 - 40% in 2020, 40 - 45% in 2025 and 50 - 55% in 2030 but the actual figure is currently only about 7 - 10%. According to information provided by businesses, THACO currently reaches about 15 - 18%, Toyota Vietnam reaches 37% for the Innova line alone. This figure is much lower than the target and compared to countries in the region such as Thailand, Indonesia and Malaysia. The reason is that domestically produced components are still limited, causing the cost of manufacturing and assembling cars in Vietnam to be 10 - 20% higher, pushing the selling price of domestically assembled cars about 20% higher than in other countries in the region.
