Increasing localisation of auto industry helps support industries grow stronger

Illustrative image (Photo: VNA)

The strong growth in automobile sales and the increase of locally-assembled auto models are a lever to further promote Vietnam's auto industry, helping it gradually engage in supply chains of leading automobile manufacturers.

Many automobile businesses have still persisted in developing the auto supporting industry in order to be proactive in supply, and reduce production costs while still ensuring product quality, significantly contributing to the nation’s socio-economic development.

Toyota Motor Vietnam (TMV) officially put a manufacturing line of two models Veloz Cross and Avanza Premio into operation in late last year, aiming to stop the import of complete built-up units of these models from Indonesia.

Previously, between March – November 2022, as many as 3,248 units of Avanza Premio and 12,876 units of Veloz Cross were imported from Indonesia for sale in Vietnam.

As a result, 273 details of the two models are manufactured by 30 suppliers in Vietnam. The TMV said that this is a crucial milestone, strongly affirming commitments to promoting the localisation rate in the auto industry, thus contributing to the country’s development.

The localisation rate of components and spare parts of the TMV reached over 40%, doubling that of this kind of the entire auto industry.

The automobile maker has focused on classifying and developing a list of potential suppliers of spare parts, and designed appropriate plans to help them improve their management and production capacity. Its support is expected to help local suppliers gradually engage in Toyota’s global value chain./.