Chinese automakers to ramp up investment in Vietnam: official

Many major Chinese automakers plan to scale up investment in Vietnam, says Chinese Minister of Industry and Information Technology Jin Zhuanglong, citing automotive as a potential sector for greater bilateral cooperation.

“China is committed to supporting its automakers in expanding production and operations in Vietnam, in accordance with the needs of both nations,” Jin Zhuanglong told Vietnamese Minister of Industry and Trade Nguyen Hong Dien at the 13th session of the Vietnam-China Economic and Trade Cooperation Committee held in Beijing on Monday.

Currently, many leading Chinese car manufacturers, including BYD, Geely, Chery, Great Wall Motor, SAIC, and Wuling, have established a presence in Vietnam.

In June, Hanoi-based Tasco JSC (Tasco) and Geely entered into a joint venture agreement to build a $168 million car assembly plant in the northern province of Thai Binh. BYD, China’s largest electric vehicle (EV) manufacturer, announced plans to open 50 dealerships in Vietnam following its debut in the country in July.

The Chinese official called on Vietnam to further support the development and long-term business operations of Chinese companies in the country.

In addition to automotive, Jin ZhuangLong proposed expanding cooperation into the aerospace industry, referencing Thailand’s recent involvement in China’s aerospace sector.

He also suggested that the two nations partner in aircraft manufacturing, offering China’s experience and technology transfer to Vietnam as part of the collaboration.

In reply, Minister Dien proposed Chinese businesses increase collaboration with Vietnam’s automobile manufacturers and assembly firms to better meet the demand for commercial vehicles.

Dien encouraged China to strengthen cooperation with Vietnam’s consumer industries and invest in high-tech, environmentally friendly mining operations that are aligned with market demands.

He expressed hope that China would share its expertise in supply chain development and assist Vietnamese firms in becoming more deeply integrated into the supply of products and services for foreign investors.

In the first seven months of this year, China ranked first in terms of newly-registered projects, with 540 projects worth $1.22 billion. The number of projects accounted for 29.7% of the country's total, according to the Ministry of Planning and Investment.

As of end-July, China had 4,754 projects totaling $28.5 billion in Vietnam, ranking sixth among 147 countries and territories investing in the Southeast Asian nation.

Ngo Dong Hai, Party chief of Thai Binh province, said at a signing ceremony for the establishment of the Tasco-Geely joint venture on September 23 that the Vietnamese automobile market is full of potential, with a car ownership rate of about 63 vehicles per 1,000 people compared to over 300 vehicles in Thailand,

The market is expected to grow at an average annual rate of 14-16% by 2030, with total car consumption reaching 1-1.1 million units, and by 2045, this is projected to increase to 4.5-4.7 million. Over the past 10 years, the growth rate of Vietnam's automobile market has been among the highest in the world, he added.