The future of Vietnam Automotive Industry?

On August 25, 2020, a second meeting for a business delegation of Czech and Slovak car part manufacturers to survey and seek investment opportunities was held at Slovak Embassy, 12 Ba Huyen Thanh Quan, Ba Dinh, Hanoi.

We were pleasured to have Mr Bruno Hromy, Trade Counselor of Slovak Embassy in Vietnam to host the meeting. The meeting had the appearance of Mr David Jarkulisch, Economic Counselor (from the Czech Embassy). Mr Ninh Huu Chan, VAMA (Vietnam Automobile Manufacturers' Association) Secretary, Dr Truong Thi Chi Binh (Mrs.), Vice President and General Secretary of Vietnam Association for Supporting Industries (VASI), Mr Nguyen Duc Thinh from Vietnam Association of Mechanical Industry.

Mr Bruno Hromy had a presentation about Vietnam Automotive Production and Market, Infrastructure in Vietnam, Prospects for the future – "smart" automobiles, connectivity, autonomous vehicles testing; shifting to European producers, difficulties and concerns of Czech and Slovak car part manufacturers before joining Vietnam Market.

After productive discussing, we exchanged and agreed to:
- Nowadays, In Viet Nam market, there is an expansion of Japan and Korean producers, so this will limit the cooperation between Europe and Viet Nam (from competition point of view).
- The lack of experienced workers and training programs are considered to be one of the most challenging concerns for Czech and Slovakia automobile manufacturers to pay attention to Vietnam
- Viet Nam cannot afford to invest in something new such as electro mobility or hydrogenium. Vietnam should focus on combustibles. Vietnam should try to bring at least the latest technology for combustibles engines from Europe.
- Vietnam companies should butter up the producers from Czech and Slovak to bride them to come to invest in Vietnam market.

Pressure from imported cars (forecast: Would be almost 100% personal cars will be imported in 2025) pushes for higher localization of cars assembled in Vietnam.

We agree with the following steps:
- SVCC rewrote the joint letter after having comments from the parties
- Goal: Will organize the delegation of companies producing car components from Czech and Slovakia countries to Vietnam right after resuming commercial air routes between Vietnam and Europe.
Expected: April of 2020.

We would like to thank all attendees of the meeting and would look forward to closer cooperation with all of you.

Written by: Linh