VIETNAM’S AUTOMOTIVE INDUSTRY TO IMPROVE QUALITY

The release of Decree No.116 together with incentives for tax, the home-produced and assembled cars are still prevailing the domestic market over the imported cars. But this advantage may not remain long unless the local manufacturers do not improve the quality and reduce the production cost.

According to the Ministry of Industry and Trade, the domestic automotive manufacturers and assemblers have initially affirmed its role and position in the auto market and gained impressive development in both quantity and quality. The gap between the home-grown cars and foreign-imported cars in the short and medium term is forecast to drastically change in the tendency of increasing both quantity of manufactured and assembled autos. However, according to the Ministry of Industry and Trade, this tendency may not last long in case the local manufacturers do not better the quality, lower production cost to increase the competence power, especially competing with cars imported from the ASEAN markets under incentive tariffs./.