3:26:22 PM | 7/8/2005
The Vietnamese Prime Minister on October 5 approved a development strategy for the local automobile industry to 2010 and vision 2020.
Under the strategy, local carmakers will be able to meet 40-50 per cent of the demand for popular vehicles such as trucks, passenger cars and sedans in 2005 with a local parts ratio of 40 per cent. Respective figures for 2010 will be 80 per cent and 60 per cent.
As for vehicles for special purposes, local manufacturers will meet 30 - 60 per cent of the demand from 2005 to 2010. Local parts rates will be 40 per cent in 2005 and 60 per cent in 2010.
For luxury sedans, local parts ratios will be 20-25 per cent in 2005 and 40-45 per cent in 2010. Luxury buses and trucks will be able to meet 20 per cent of demand in 2005 and 35-40 per cent in 2010.
Regarding targeted volumes, according to the strategy, Vietnam will turn out 32,000 four-seat sedans in 2005, 60,000 in 2010 and 116,000 in 2020; 3,000 sedans with six to nine seats in 2005, and 10,0000 in 2010; and 15,000 passenger cars in 2005 and 36,000 units in 2010. The respective figures for trucks will be 68,000 and 127,000.
To obtain these targets, the State will provide numerous incentives for the industry such as free import taxes on CKD and IKD components and corporate income tax exemption for new products for one year.
Vietnamese
