Assistance needed given Vietnam's integration commitments, motor vehicle association says.
In order to continue manufacturing motor cars in Vietnam amid competitive pressure from Vietnam's integration commitments, Mr. Yoshihisa Maruta, Chairman of the Vietnam Automobile Manufacturers Association (VAMA) and CEO of Toyota Vietnam confirmed a proposal from the motor vehicle association will likely be submitted to the government this month.
After denying rumors Toyota planned to cease production last week, Mr. Maruta has prepared a proposal for discussion with relevant government authorities containing two different scenarios. In the scenario where manufacturing continues, VAMA seeks a subsidy of at least 10 per cent on each vehicle together with certain other conditions.
"Policies on car manufacturing in Vietnam should be to nurture domestic production on a large scale, large enough to compete with imports, so there should be concessions for domestic production," he said. "Thailand and Indonesia have similar policies and use tax policies to support and promote the consumption of domestically-manufactured automobiles."
The Ministry of Finance and the Ministry of Industry and Trade, however, aren't of the same view. Meanwhile, according to a number of domestic automobile enterprises, 2015 is the deadline for them to decide whether to continue investing in production in order to be able to compete with imports in 2018.