PM encourages Skoda Auto’s further investment in Vietnam
VOV.VN - Prime Minister Pham Minh Chinh has appreciated Skoda Auto’s investment project in Vietnam and encouraged the largest automotive manufacturer of the Czech Republic to expand cooperation plans in the country.
Chinh, who is in Prague for a three-day official visit to the Czech Republic, made the appreciation during a meeting with Klaus Zellmer, CEO of Skoda Group, in Prague on January 19.
In 2022, Skoda Auto and Thanh Cong Group signed a deal to produce and distribute Skoda-branded vehicles in Vietnam, aiming for localization, the adoption of modern technology, and the use of clean energy. By September 2023, imported completely-built-up (CBU) Skoda models were officially launched in the local market.
Currently, Skoda and Thanh Cong are building a manufacturing and assembly plant in Quang Ninh province, with an investment of Ú$500 million. The plant, Skoda’s first in Southeast Asia, is expected to be completed in Q1 2025. According to the plan, the first two CKD (completely knocked down) models, Kushaq and Slavia, will be introduced in 2025.
The PM commended Skoda’s investment efforts and encouraged the group to explore additional investment and business opportunities in Vietnam.
Zellmer for his part affirmed that as Vietnam is a key gateway to the large, lucrative ASEAN market, Skoda recognizes the country’s potential to become the group’s manufacturing and export hub for ASEAN and other markets.
He also updated the PM on the project’s progress in Vietnam, including plans to increase localization rates and desires to receive incentives and support from the government.
Regarding Skoda’s concerns, the Prime Minister emphasized that Vietnam offers incentives and support if investors meet conditions such as transferring high technology, increasing scientific and technological content, planning large-scale investment, and assisting Vietnamese businesses in joining the value chain.
Local governments, within the framework of general regulations and local conditions, may creatively apply incentive policies related to worker housing, land leases, fees, and charges, he added
The Prime Minister also called on Skoda to prioritize research and development of electric vehicles, increase localization rates, and transfer technology to Vietnam.
The government of Vietnam, he affirmed, is committed to creating favourable conditions for Skoda and other Czech investors to conduct effective and sustainable business in compliance with Vietnamese law.
