95 pct made-in-Vietnam auto parts for foreign brands
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Nearly 95 percent of auto parts produced in Vietnam are for foreign brands, showing a lack of localization in the industry.
Of the 287 items that have been approved by the Ministry of Science and Technology as of Aug. 17, 15 were registered for VinFast cars.
The rest were all for foreign brands. A total 226 were for Toyota, 15 for Ford and 10 for Honda.
This means Toyota accounts for nearly 79 percent of the registered items.
None of these items include parts for Hyundai and Mazda vehicles, although TC Motor (which assembles Hyundai cars) and Thaco (which assembles Mazda cars) have both previously affirmed they had “high” localization rates.
TC Motor claims the rate at around 20 percent.
Most parts are frames, chairs, and wires that are considered basic. There are no complicated parts like engines and gearboxes.
Vietnamese officials have been calling for a higher localization rate of cars produced in the country for over two decades but the target has not been achieved.
Questions & Answers
Q.What proportion of Vietnamese-made auto parts are currently registered for local car manufacturer VinFast?
What proportion of Vietnamese-made auto parts are currently registered for local car manufacturer VinFast?
Out of 287 approved items, 15 were registered for VinFast vehicles. This indicates a small proportion of domestically produced parts are currently going towards their cars, with the vast majority serving foreign brands.
Q.Which foreign car manufacturer accounts for the highest number of approved auto parts produced in Vietnam?
Which foreign car manufacturer accounts for the highest number of approved auto parts produced in Vietnam?
Toyota accounts for the highest number, with 226 items registered as of August 17th. This represents nearly 79 percent of all approved auto parts produced in the country for foreign brands.
Q.What types of auto parts are commonly produced in Vietnam, and are there any significant components missing?
What types of auto parts are commonly produced in Vietnam, and are there any significant components missing?
Most parts produced are considered basic, such as frames, chairs, and wires. There are no complicated or advanced components like engines and gearboxes being produced domestically for cars.
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