Vietnam expected to become leading auto manufacturer in SE Asia

The organizer of Automechanika Ho Chi Minh City 2023, Vietnam's leading regional trade fair for the automotive service industry, will help Vietnam become a leading auto manufacturer in the Southeast Asian region in the future with more than 1,000 auto part suppliers, said a representative of the organizer.

They will support Vietnamese enterprises to take part in supply chains in the auto sector with an aim to push auto manufacturers to increase their localization rate to 40 percent and reduce car prices to access more customers, Calvin Lau, director of Hong Kong-based Messe Frankfurt Co. Ltd., a co-organizer of the trade fair, said at a press conference to introduce the event on Tuesday.

They expected the number of cars manufactured in Vietnam to exceed one million and the number of sold cars to reach 900,000 units per year.

The trade fair is anticipated to attract some 450 participating units from 21 countries and territories with 40 percent of them being from China, who want to develop supply chains and get involved in supporting industries in Vietnam, Lau added.

Vietnam is seeing a rapid increase in the number of support industry enterprises but the number of those in the auto manufacturing sector remains modest, Bui Thi Hong Hanh, vice-chairwoman of the Vietnam Association for Supporting Industries, said at the press briefing.

Some 300 Vietnamese enterprises have taken part in supporting industries of the auto sector. They are aware of complying with the requirements on techniques, human resources, and delivery time, Hanh noted.

However, they must spend stronger efforts to get involved in the auto sector’s supply chains as they are facing fierce competition from rivals from other countries.

Japanese carmaker Toyota has recently placed more orders from many Vietnamese enterprises and has conducted surveys to choose its suppliers.

The Automechanika Ho Chi Minh City 2023 will take place at the Saigon Exhibition and Convention Center in District 7, Ho Chi Minh City from June 23 to 25.

A highlight of the event is a separate area for electric vehicles.

Vietnam holds the potential to become one of the first ASEAN countries to meet the increasing demand for electric vehicles, according to the enterprises.

The Vietnam Automobile Manufacturers' Association forecast that electric auto ownership in Vietnam to reach one million by 2028 and 3.5 million by 2040.

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