Toyota’s factory in Vinh Phuc province. — VNA/VNS Photo |
This year, the supporting industries of automobiles and motorcycles seem to be facing an opportunity for change.
To integrate deeply into global supply chains, Vietnamese companies are forced to improve their competitiveness, expand production scale and focus on technology.
Both the car and motorcycle markets plummeted last year.
The Vietnam Automobile Manufacturers Association, which represents most of the auto industry, reported that car sales were 301,989 units, down 25% from 2022.
Motorcycle sales decreased by 16.21% to 2.51 million units.. The sharp drop in demand for automobiles has caused manufacturers and importers to reduce the number of cars they sell, severely impacting the supply chain.
many As a result, Vietnamese supporting industry enterprises lost orders.
quinte vietnam (VnEconomy – Vietnam Economic Times) Magazine reports that the company’s revenue from auto parts sales fell by 20% last year to nearly VND8.7 trillion (US$362.5 million), a Taco Industries executive said. quoted the statement.
Exports fell 75% to $105 million, he said.
However, he said its performance was “better” than many other companies in the industry.
According to the Vietnam Supporting Industries Association, supporting industry revenues may have fallen by 40 percent last year.
Analysts predict that although the economy still faces potential challenges this year, the situation will be much better than last year.
FDI will continue to increase this year, they said. The entry of new foreign companies will certainly increase competitive pressure.
Motorcycle companies such as Honda and Yamaha source and use more than 95% of their parts locally. Honda has an 83% share of the motorcycle market.
Consumers have long preferred domestically produced cars because their quality is comparable to imported cars and their prices are competitive.
For trucks, agricultural and construction equipment, the proportion of indigenous parts ranges from 15 to 40%, rising to 70% for some Thaco vehicles.
However, in the case of sedans, the percentage of domestically produced parts is still less than 20%, and expensive parts still need to be imported from overseas.
Experts predict that Vietnam will continue to be a bright spot for FDI this year, especially for “high-quality” investments. —VNS