VN car industry still stuck in reverse
HA NOI (VNS)- The remark was made by the Director of the Industry and Trade Ministry's Heavy Industry Department, Nguyen Manh Quan. Prices were still high compared with those in other regional countries, Quan said at an online seminar held by Cong Thuong (Industry and Trade) newspaper on Thursday. "The cost of cars in There are 18 FDI and 38 domestic businesses making and assembling cars. They have a capacity of about 460,000 vehicles a year. The sector pays more than US$1 billion in taxes annually and creates job for about 80,000 people. At the seminar, experts said the industry was so sluggish because of the low rate of making parts locally, taxes and fees. Quan said the localisation rate had risen from 7 to 10 per cent for small car and 35-40 per cent for light-duty trucks, but this was still very low compared with the target. To buy a car, Vietnamese have to pay eight types of taxes and fees, including import tax, special consumption tax, VAT, vehicle owner registration fee, car registration fee, car number granting fee and road transport fee. Experts are worried that by 2018, when This means that if the Government does not change its policies, the domestic industry will fail to compete with others in the region. CEO of Ford Viet Arias said stable policies helped enterprises to predict outcomes so that they could set up parts suppliers who could join in the global network. To achieve this, the industry needed to produce a specific number of cars. To make a car, thousands of parts are needed. No car maker can produce all parts by themselves, said Arias. To develop, a sizable market is needed and proper policies to attract investors. Head of the Industrial Policy and Strategy Institute Duong Dinh Giam said the Government was determined to develop the car industry. "Automobile development is an indispensable trend of every nation when average incomes reach $3,000 a year or more. Therefore, we need to take advantage of this trend," said Giam. The average income of Vietnamese is estimated to hit $1,900 per head this year, according to a recent report from the General Department of Statistics. Giam also said the Government had limited the sale of personal vehicles in the past because the traffic system was so inadequate. However, the |
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