A workshop titled “Developing Vietnam’s automobile industry” was held on the morning of December 26 at the Institute of Strategy and Policy on Industry and Trade as part of efforts to prepare a strategy for the development of Vietnam’s automobile industry through 2030, with a vision to 2045. Deputy Minister Truong Thanh Hoai attended and delivered remarks at the event.

In his opening address, the Deputy Minister said the Party and the State have consistently attached great importance to the development of the automobile industry. While the draft strategy has largely been completed, further review and refinement are still needed, especially with regard to policy recommendations, which he described as a decisive element for ensuring sustainable industry development.

He stressed that the draft must provide a comprehensive assessment of the current state of the automobile industry, clearly identify achievements, and fully point out existing shortcomings and bottlenecks, as well as development directions for the coming period. On that basis, appropriate policy and legal recommendations should be proposed to support the industry’s sustainable growth. The workshop, he said, focused on gathering opinions, especially on existing constraints, growth projections and corresponding policy solutions.

According to the draft strategy, the automobile industry is identified as a foundational sector with wide-ranging impacts on economic growth, industrialisation, modernisation, and national defence and security. The strategy is in liine with the Party’s guidelines and major socio-economic development strategies and plans.

In terms of orientation, the strategy emphasiszes the parallel development of domestic automobile manufacturing and assembly alongside supporting industries, treating them as two closely linked pillars.

The automobile industry is expected to continue playing an important role and requires stable, long-term support policies to provide confidence for large-scale, long-term investment. Industry development is to follow a roadmap consistent with the green energy transition, based on key pillars including the environment, technology, infrastructure, human resources and the consumer market.

The strategy also places priority on building a strong supporting industry network capable of producing high-quality components and parts, enabling deeper participation in global supply chains. At the same time, it follows the global shift away from fossil-fuel vehicles toward environmentally friendly models such as CNG (compressed natural gas) vehicles, hybrids, battery electric vehicles, hydrogen fuel-cell vehicles and other new energy technologies, contributing to lower fuel consumption and greenhouse gas emissions.

In terms of targets, by 2030 Vietnam’s automobile market is projected to reach 800,000-900,000 vehicles, with average annual growth of 8-10%. Environmentally friendly vehicles are expected to account for 25-35% of the market.

Domestic production and assembly output is estimated at 550,000-650,000 vehicles, meeting 70-75% of market demand, while exports of transport vehicles and components are targeted at US$14-15 billion.

By 2045, the domestic automobile market is expected to expand to 4.5-5 million vehicles, with average annual growth of 10-12%. Environmentally friendly vehicles are projected to account for 75-80% of the market. Domestic production and assembly output is expected to hit 3.8-4.2 million vehicles, meeting 80-85% of domestic demand, while export value of transport vehicles and components is set to stand at US$35-40 billion, thus strengthening Vietnam’s position in the global automobile value chain.

Vietnam’s auto industry needs deeper involvement in global supply: experts

Vietnamese enterprises in the auto industry are not deeply involved in the global supply chain. To become global suppliers, domestic enterprises must be consistent with the management culture and business philosophy of global manufacturers, experts have said.