By the end of September 2007, existing automobile factories in
Foreign automobile manufacturers have done well in
In fact, the joint ventures have been making big leaps since 2003: they output 50,636 units in 2003, 54,000 units in 2004, 67,000 units in 2005, and 60,000 units in 2006.
From 1990 to 2006, automobile joint ventures have produced 270,000 units of different kinds and paid nearly $1.5bil towards the state budget both while creating over 50,000 jobs.
When granted investment licenses, foreign automobile joint ventures all committed to gradually increase the localisation ratio of car products.
Still though, local production proves to be very low and the manufacturers have been facing sharp criticism from policy markers and the public for not fulfilling their localization commitments.
Meanwhile, domestic owned enterprises have made considerable progress in making vans and commercial vehicles. The Vietnam Motor Corporation (Vinamotor), the Vietnam Engine and Agricultural Machinery Corporation (VEAM), Vietnam Coal and Mining Industries (Vinacomin), Truong Hai Automobile Company (Thaco), Xuan Kien Automobile Private Enterprise (Vinaxuki) and Saigon Automobile Corporation (Samco) all have become the members of the Vietnam Automobile Manufacturers (VAMA), which was previously dominated solely by foreign automobile joint ventures.
Vinacomin’s vehicle output is now just enough to serve the demand of the group itself, while its products prove to be competitive when compared to imports thanks to a high localisation ratio and soft prices.