Xuan Kien Auto JSC’s plans to produce a totally made-in-Vietnam car continue to face problems.
Xuan Kien Auto JSC's Me Linh 1 Plant
Xuan Kien JSC harbours the dream of manufacturing a low-price, locally-produced car for people living in rural areas. But like other made-in-Vietnam car projects, they have failed to raise finance from local banks and were forced to sell off one of their manufacturing facilities, Me Linh 1 Plant.
According to industry experts, the car models designed by Xuan Kien have proved unattractive and were limited by the non-existence of a sufficiently developed support industry. Xuan Kien also wants to produce heavy trucks and to expand its mining business and this would require large investment.
But bad business plans alone are not the only thing blame, a lack of supporting policies has also been pinpointed as another factor in the failure of the local car industry.
Deputy director of Information Centre of Industry and Trade under the Ministry of Industry and Trade, Le Quoc Phuong, admitted the problem.
He said, "The agencies haven't reached any agreement. The Ministry of Industry and Trade want the industry to grow but the finance ministry asks for higher taxes. Vietnam is also trying to limit cars due to the lack of road infrastructure anyway."
