Vietnam's "Vietnam+" reported on July 21, 2021. The Ministry of Industry and Trade of Vietnam revealed that the main reason for the recent slow development of the automotive auxiliary industry is that Vietnam's automotive market is relatively small, only one-third of Thailand's and one-fourth of Indonesia's. one.

The market scale is small, and because of the large number of car assemblers and the dispersion of many different models, it is difficult for manufacturing companies (including manufacturing, assembling cars and producing parts) to invest and develop products and mass production. This is an obstacle to the localization of automobiles and the development of the automobile auxiliary industry.

Recently, in order to actively ensure the supply of spare parts and increase the domestic content, some large domestic enterprises in Vietnam have actively increased their investment in the automotive auxiliary industry. Among them, THACO AUTO has invested in the construction of Vietnam's largest spare parts production industrial park with 12 factories in Quang Nam Province to increase the localized content of automobiles and their spare parts.

In addition to the Vietnam Changhai Automobile Company, Berjaya Group has also invested in the construction of the Succeed-Vietnam Automobile Auxiliary Industrial Cluster in Quang Ninh Province. This will become a gathering place for many companies engaged in automotive assistance. The main products of these companies are auto parts with higher technological content, which not only serve the core business activities of Berjaya Group, but also serve export activities.

Experts in the industry believe that global chip supply shortages may gradually return to stability at the end of this year or the first half of 2022. The core problem of Vietnam's automotive auxiliary industry is still the small market capacity, which is not conducive to the development of automobile production and assembly activities and spare parts production activities.

The Ministry of Industry and Trade of Vietnam also admits that the small market capacity and the difference between the price and production cost of domestic cars and the price and production cost of imported cars are the two major obstacles to the Vietnamese auto industry.

In order to remove the above-mentioned obstacles, the Ministry of Industry and Trade of Vietnam proposes to plan and build an infrastructure system to meet the needs of people, especially the residents of major cities such as Hanoi and Ho Chi Minh City.

In order to solve the problem of the difference between the production costs of domestically-produced cars and imported cars, the Ministry of Industry and Trade of Vietnam believes that it is necessary to continue to maintain and effectively implement the preferential import tax rate policies for parts and components that serve automobile production and assembly activities.

In addition, consider revising and supplementing the relevant regulations on special tariffs to encourage enterprises to increase production and domestic value-added.