Vietnam to make capital an auto-hub

Tag: car accessories

Hanoi is ambitious to become a centre of support industries for Viet Nam’s car makers, despite the fact that the car industry is operating below potential.

As pointed out in a plan for automobile development for the next two years, auto parts are considered one of the nation’s eight key mechanical sectors.

Planners say it is vital for Viet Nam to develop the industry because of its links to other industries and thus to modernization.

According to Hanoi’s Department of Industry and Commerce, the city now has 16 automobile spare-parts and assembly companies, mainly for lorries and buses.

Most of these spare parts makers have the same complete knock down (CKD) technical background (a complete assembly kit) with low, localized rates, according to Pham Duc Tien, deputy director of Hanoi’s Department of Industry and Commerce at a conference last week.

Viet Nam manufacturers make simple auto products, such as mirrors, glasses, chairs, radio and tires. But 70 to 90 per cent of components come from China and South Korea.

Fierce competition among auto makers has hindered the development of the industry in Hanoi.