Vietnamese automaker ships buses to Philippines
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Vietnam’s leading automaker and assembler Thaco shipped the first 15 buses to the Philippines on Saturday.
Tran Ba Duong, chairman of Truong Hai Auto (Thaco), said the exported buses were redesigned after seven months of testing in the Philippines. They had a localization rate of 45 percent and complied with Euro 5 emission standards.
All the buses were assembled in the Chu Lai open economic zone in Quang Nam Province, central Vietnam.
Duong said a major challenge in exporting vehicles made or assembled in Vietnam was the complicated assessment process in foreign countries. For example, the process takes six months in Thailand, four to five months in the Philippines and a year in the U.S.
Thaco expected to ship 200 buses to the Philippines in 2020.
The firm exported 186 automobiles of various types to ASEAN countries and plans to export over 1,020 units next year. Thaco also exported auto parts and accessories worth $14.5 million to South Korea and Japan in 2019, and this is expected to rise to $21 million in 2020.
Thaco has been researching, manufacturing and assembling buses and continuously promoting investment in the field since 2004. To date, the company has supplied over 17,000 buses to the domestic market, holding a 65 percent market share.
Questions & Answers
Q.What modifications were made to the buses before they were shipped to the Philippines?
What modifications were made to the buses before they were shipped to the Philippines?
The exported buses were redesigned after seven months of testing specifically in the Philippines. They also had a 45 percent localisation rate and met Euro 5 emission standards, ensuring suitability for the market.
Q.How long does it typically take for Vietnamese vehicles to be assessed for export to other countries?
How long does it typically take for Vietnamese vehicles to be assessed for export to other countries?
The assessment process for exporting vehicles made or assembled in Vietnam varies significantly by country. It takes about six months in Thailand, four to five months in the Philippines, and up to a year in the U.S.
Q.What are Thaco's projected export figures for buses to the Philippines and other vehicles next year?
What are Thaco's projected export figures for buses to the Philippines and other vehicles next year?
Thaco expects to ship 200 buses to the Philippines in 2020. Also, the company plans to export over 1,020 units of various automobile types to ASEAN countries next year, following 186 exports this year.
Q.What is the expected growth in value for Thaco's auto parts and accessories exports for 2020?
What is the expected growth in value for Thaco's auto parts and accessories exports for 2020?
Thaco expects the value of its auto parts and accessories exports to increase from $14.5 million in 2019 to $21 million in 2020. These exports are primarily to South Korea and Japan.
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