A lack of unanimity among ministries had deterred the development of Vietnam's motor vehicle industry, said Ngo Van Tru, deputy director of the Ministry of Industry and Trade's (MoIT) Heavy Industry Department.
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| Trucks being assembled at a Truong Hai Automobile Co's factory in the central province of Quang Nam |
Tru said the ministry had striven to build a motor vehicle development strategy to increase productivity while the Ministry of Transport's strategy was to reduce the number of motor vehicles on the roads due to weak infrastructure.
He said the MoIT's strategy should have been submitted to the Government in the first quarter but had been delayed till the third quarter because it was waiting for an impact report from the Ministry of Natural Resources and Environment.
Statistics from the MoIT showed that Vietnam's motor vehicle production had not increased since 2007. In April it was 7,000 vehicles, 24 percent less than the previous month and 46 percent down on the same period last year.
The ministry forecast about 81,000 new motor vehicles would be sold this year while the Vietnam Association of Manufacturers of Automobile (VAMA) targeted 130,000 to 140,000.
The low consumption has resulted in high inventory, capital shortage and job cuts, which was alarming, he said.
Vietnam Society of Automobile Engineers (VSAE) chairman Do Huu Hao said the problem holding back development of the industry was the lack of a clear Government policy.
While motor vehicle consumption was low, the support industries would not develop, he said.
He added that Vietnam should encourage its people to use automobiles as citizens in an industrialised country could not be expected to walk.
He urged the finance and transport ministries to introduce stable policies with reasonable taxes and fees to stimulate the market.
Finance Ministry Tax Policy Department deputy director Pham Dinh Thi said the problem was how to build a development strategy that would ensure benefits to all parties, the Government, producers and consumers.
Distinctive model
Truong Thi Chi Binh, director of the Centre for Support Industry Business Development under the Institute for Industry Policy and Strategy of Vietnam, said the country needed to build a distinctive model to develop the automobile industry.
The model would help develop production and manufacturing businesses, increase productivity and improve consumption habits.
However, engineer Tran Tien Vu said Vietnam should not be in too great a hurry to develop the industry. A strategic motor vehicle model should be decided by the market.
Vu said the Government should review its tax policies on motor vehicles.
We should invest in infrastructure before developing the industry, he added.
