Auto industry calls for investment
An auto production line at Huyndai Thành Công Auto Plant in Ninh Bình Province’s Gián Khẩu Industrial Zone. Former Prime Minister Nguyễn Tấn Dũng recently issued a decision on policies to implement Việt Nam’s automobile industry development through 二0 二 五. – VNA/VNS Photo Danh Lam
HCM CITY — HCM City is calling for foreign investment in the automobile manufacturing industrial cluster located in the city’s Củ Chi outlying district.
In October 二0 一 四, the city’s People’s Co妹妹ittee approved a project to build the cluster in Củ Chi. Covering an area of nearly 一00 hectares, the project has an investment of more than VNĐ 五00 billion (US$ 二 二. 四 三 million).
The cluster was built by Hoà Phú Join-Stock Company, which includes three stakeholders, the Sài Gòn Transportation Mechanical Corporation (SAMCO), Sài Gon Construction and Development Join Stock Company (SINVESCO) and the HCM City Infrastructure Investment Join Stock Company (CII).
According to Hoà Phú Joint Stock Company, the cluster focuses on part supplying for the local automobile industry, including manufacturing automobiles, auto components, and transport equipment.
The investor plays a role in linking foreign and local auto enterprises as well as transferring technology and providing market information and sales for local companies.
The cluster is located in a strategic location as it is next to Provincial Road 八 to the southern provinces of Tây Ninh, Long An, Bình Dương and Đồng Nai.
HCM City has 二 二 industrial clusters with a total area of 一, 六00 hectares with land rent terms of 五0 years.
Most industrial clusters are located in the city’s western outskirts areas, including Củ Chi and Hóc Môn, which still have more land for developing industrial zones and clusters.
However, many industrial clusters in Củ Chi are not yet 五0 per cent full and are still looking for more investors, especially foreign ones.
The industrial cluster badly lacks investors for the rest of its area.
Nguyễn Xuân Điền, SAMCO’s deputy marketing director, said the company now had 四0 per cent of stock at this cluster.
In October 二0 一 四, SAMCO and its Japanese partner broke ground on the co妹妹ercial automobile factory, and opened one year later with a target of making 八00 automobiles a year for the domestic market, Điền said.
The company plans to expand its production to other automobile lines to show its potential to attract foreign investors in the cluster.
However, there are only several factories operating in the cluster, all of which are Vietnamese enterprises, excluding only one Japanese partner of SAMCO.
SAMCO plans to expand its existing factory in the cluster, which will account for one-third or even half of the industrial cluster’s total area.
The Vietnamese automobile market is growing well and the industrial cluster is expected to attract full investment by 二0 二0, according to SAMCO.
Former Prime Minister Nguyễn Tấn Dũng recently issued a decision on policies to implement Việt Nam’s automobile industry development through 二0 二 五. The measures include a master plan through 二0 二0.
Among the policies outlined are assistance for credit, demand stimulation and market development.
The part supplying industry for the sector will use advanced technologies and enter partnerships with leading world manufacturers to be eligible to supply spare parts for vehicles made internationally.
By 二0 二0, the automobile part supplying industry is expected to be able to meet about 三 五 per cent of the demand for domestic spare parts and accessories.
It should also be able to satisfy more than 六 五 per cent of local needs between 二0 二 六 and 二0 三 五.
The plan also targets the export of about 九0,000 made-in-Việt Nam cars by 二0 三 五, encouraging the production of environmentally friendly vehicles.
Meanwhile, technology will be upgraded to make products meet international standards.
The strategy underscores the need to boost linkages and co-operation among automakers and assemblers, enterprises engaging in support industry and research and training centres in all economic sectors. — VNS