Billions of dollars worth of car parts exported but not from Vietnamese manufacturers VietNamNet Bridge - Vietnam spends billions of dollars to import car parts each year for domestic assembling, but it also exports billions of dollars worth of vehicle parts. However, the exporters are mostly from foreign invested enterprises (FIEs). Vietnam needs to import car parts for domestic assembling Toyota Vietnam reported that it exported $34 million worth of car parts in the first half of the year, an increase of 13 percent compared with the same period last year. A report of the General Department of Customs (GDC) showed that the export turnover of transport vehicles and spare parts in 2017 nearly reached the $7 billion threshold, an increase of 15.4 percent over the year before. A report of the General Department of Customs (GDC) showed that the export turnover of transport vehicles and spare parts in 2017 nearly reached the $7 billion threshold, an increase of 15.4 … [Read more...] about Billions of dollars worth of car parts exported but not from Vietnamese manufacturers
Burlington foreign car parts
On June 21, Pyeong Hwa Automotive Co., Ltd. (PHA) was granted the investment certificate for its automotive parts manufacturing plant located in Deep C II Industrial Zone (IZ), the northern port city of Haiphong’s Dinh Vu-Cat Hai Economic Zone. Pyeong Hwa Automotive (PHA) receives the investment certificate for its manufacturing plant in Deep C II Located in Haiphong—one of the most dynamic cities with highest growth rate in Vietnam—the automotive parts manufacturing plant of PHA will cover an area of 7 hectares, with an investment capital of $16.7 million. Upon its launch in September 2019, it will supply 7.5 million products to the market per year, generating nearly 300 jobs for local labourers. Lee Jae-Seung, president of PHA, said, “After conducting surveys in numerous areas, PHA found that Deep C II IZ is the most suitable place to implement its expansion plan due to its optimal business environment and services.” Pyeong Hwa Automotive Co., … [Read more...] about PHA receives license for car parts manufacturing plant in Deep C IZ
Vietnam’s policy on tightening car import regulations under Decree 116 may be the main reason behind foreign car makers' decision to expand production in Vietnam. The Toyota automotive plant in Vinh Phuc province. Source: toyotavinhphuc.info Most recently, Toyota Vietnam proposed the Vinh Phuc People’s Committee to rent 9.1ha of land in Phuc Yen city to expand its automobile manufacturing plant, raising its annual capacity from the current 50,000 to 90,000 units by 2023. Accordingly, the total capital for this expansion is about $40 million. Toyota’s move is supposed to be the result of Decree No.116/2017/ND-CP, which introduced many strict conditions and regulations about importing cars, which came into effect early this year. Not only Toyota, but Ford and Hyundai are also planning to expand production scale in Vietnam due to the decree. According to the Vietnamese government, Decree 116 aims to boost the development of the country’s automobile … [Read more...] about Decree 116 moves foreign car makers to expand production in Vietnam?
Foreign car makers are looking at ways to obtain the documetation required by a new law in Vietnam to reopen automotive exports to the country. Two months after Vietnam put in place a rule requiring stringent inspections of imported vehicles, around 2,000 Honda Motor passenger cars are slated to arrive in Vietnam from Thailand early this week, likely the first batch of foreign-made autos to undergo the new checks, according to Nikkei Asian Review. Honda has obtained quality certification from Thai authorities, and the Vietnamese government has apparently accepted the documents. The Indonesian government is also planning to change the vehicle type approval (VTA) certificates it issues in an effort to reopen automotive exports to Vietnam. "With the VTA adjustment, Indonesian automotive exports are expected to return to the country," the Jakarta Post quoted Indonesian Trade Ministry international trade director general, Oke Nuwan, as saying. “The government will convey the … [Read more...] about Foreign car makers try to navigate new law in Vietnam after two-month hiatus
According a report from the Ministry of Industry and Trade, demand for automobiles will likely reach between 800,000-900,000 units by 2025 and 1.5-1.8 million by 2030. The report said in recent years the automobile market growth has been much higher than expected though prices in Viet Nam remain very high (car prices in Viet Nam are double those in neighbouring countries like Thailand and Indonesia). For instance, the below-nine-seat market segment has grown by 20-30 per cent a year in recent years. The problem here is that Vietnamese automakers are not developed enough to take the advantage of this growth, and so the market is dominated by foreign cars. Most cars sold in Viet Nam now are foreign brands produced locally through joint ventures with multinationals or fully imported. The average use of locally made parts in the auto industry is way lower than the targets of 40 per cent for … [Read more...] about VN awaits deluge of foreign cars