There is a need for policies that build long-term investment confidence for businesses, gradually forming a sufficiently large market scale to promote production, assembly, and the development of supporting industries for Vietnam’s automotive sector.
This was heard at this morning's workshop titled “Developing Vietnam’s Automotive Industry: Implementing the Strategy for the Development of Vietnam’s Automotive Industry to 2030, with a Vision to 2045" organized by the Institute of Strategy and Policy for Industry and Trade in Hanoi.
According to Deputy Minister of Industry and Trade Truong Thanh Hoai, the draft Strategy for the Development of Vietnam’s Automotive Industry to 2030, with a vision to 2045, has been basically completed by the Ministry but still requires further review, especially regarding policy recommendations.
The revision and completion of this strategy come amid challenges: current policies have yet to create a sufficiently large market for the auto industry; supporting industries are developing slowly; and enterprises still lack long-term confidence to make large-scale, sustained investments.
The draft needs to comprehensively assess the current state of the industry, clarify achievements, and identify limitations and challenges. Based on that, it should propose appropriate policy and legal solutions to promote sustainable development of the country’s automotive industry.
The strategy identifies the automotive industry as a foundational sector, contributing to economic growth, industrialization, modernization, and national defense and security. The guiding principle is to develop domestic automobile production and assembly in parallel with supporting industries, treating the two as closely linked pillars.
The State plays a coordinating and guiding role in the industry’s development, focusing resources on forming and nurturing several large-scale automobile enterprises capable of leading the market. It also aims to boost investment in research and development, especially in batteries, core technologies, and new energy. The industry needs stable, long-term support policies to build investor confidence for large-scale, sustainable investment.
The strategy also directs the industry’s development along a green energy transition pathway, based on five pillars: environment, technology, infrastructure, human resources, and market. The focus is on building a network of capable supporting-industry enterprises producing high-quality components and parts, gradually integrating more deeply into the global automotive value chain, thereby reducing dependence on imported parts. It also aims to align with global trends toward environmentally friendly vehicles such as CNG, hybrid, electric, and hydrogen fuel cell cars.
By 2030, Vietnam’s automotive market is expected to achieve an average annual sales growth of 8–10 percent, reaching 800,000–900,000 vehicles, of which about 85 percent will be passenger cars under nine seats, and 25–35 percent will be environmentally friendly vehicles. Domestic production and assembly are expected to reach 550,000–650,000 vehicles, meeting 70–75 percent of market demand, while the export turnover of transport vehicles, components, and parts is projected to reach US$14 billion – US$15 billion.
