A lack of clear government policy cited as a hurdle to industry growth.
Toyota Vietnam is considering putting a stop to all production and assembly in the country.
According to Mr Yoshihisa Maruta, General Director of Toyota Motor Vietnam (TMV), there are some challenges facing automobile manufacturers in Vietnam that could lead to a halt in production. “The first challenge is that CBU import tax from the South East Asian countries will be reduced to 0 per cent within three years. Meanwhile, the government has issued a strategy and plan for a new stage of the auto industry, but they haven’t decided any policy,” Mr Matura said during a TMV fiscal year 2014 meeting held last weekend.
Mr Maruta added that manufacturers in Vietnam are still waiting for policy relating to the market and the auto industry. “To produce a model, enterprises should have about three years to prepare. Thus, at this point we need to have a specific plan. However, we are forced into a difficult position to decide our route without notice of any specific policy, "said Mr Maruta.
TMV currently accounts for the largest market share in Vietnam’s auto industry. According to the Vietnam Automobile Manufacturers Association ( VAMA ), TMV’s total vehicle sales in 2014 reached 41,205 units, up 24 per cent compared to 2013. The number of cars assembled in Vietnam was 34,778 units.