Sign up | Log in



Home  >>   Daily News  >>   Vietnam  >>Automotive  >> Toyota Motor Vietnam undecided on local assembly
NEW UPDATES Asean Affairs 9 April  2015  

Toyota Motor Vietnam undecided on local assembly

Toyota Motor Vietnam (TMV) is wavering between continuing to assemble and manufacture cars and importing completed cars when the 2018 import tax on cars from ASEAN countries drops to zero.

Speaking at a press conference held in Ha Noi last week, General Director of TMV Yoshihisa Maruta said his company had not yet decided on this issue. The corporation must make a decision this year because it takes three years of preparation to manufacture these cars.

Maruta, who is also Chairman of the Vietnam Automobile Manufacturers' Association (VAMA), explained that the imported complete built up units would be cheaper than the imported complete knock down units. Therefore, the drop in the import tax to zero per cent for ASEAN countries by 2018 was a major issue. TMV as well as the VAMA members all had to decide whether they would continue to assemble cars locally or import them in 2018.

The Government last year approved a master strategy for the automobile industry's development by 2020, with a vision toward 2030. However, the strategy did not include a concrete development plan for businesses, so automakers are still waiting for concrete policies to be put in place.

The TMV leader said if the relevant agencies had no concrete action plan, his firm and other VAMA members would face difficulties.

He named Hyundai, a famous brand from South Korea, as an example. Despite hopes that the firm would invest in production in Viet Nam, its management decided to develop a production facility in Malaysia last year instead. Accordingly, most of the firm's 2014 models that are being sold in Thailand and Viet Nam were manufactured and assembled in Malaysia. This move was aimed at supplying cars to customers at more reasonable prices than those being imported directly from South Korea.

Maruta said this example showed that the country's greatest challenge, leading to a lack of competition, was that it had failed to develop a support industry.

Domestic automakers' rate of producing spare parts is very low, serving only 10 to 30 per cent of the production. Most of the spare parts produced in Viet Nam are very basic and have little value.

Meanwhile, sedans from Toyota, Ford, Mazda and Honda have grabbed a significant share of the domestic market. Almost all of these automakers have at least one manufacturing plant in Thailand or Indonesia, or in both countries.

To attract automakers to invest in Viet Nam as much as they do in Thailand and Indonesia, Viet Nam must have a large auto market in place with a developed support industry.

Although they are faced with such difficulties, TMV has targeted production of 41,000 units this year, an increase of 18 per cent compared with that of last year. The firm expects to sell 46,000 cars, including many new models, 13 per cent more than it sold the year before.

Last year, the firm invested US$19 million in new car projects and production lines, introducing new models such as Vios, Altis and Yaris to the market. More than 41,200 cars were sold in 2014, an increase of 24 per cent over last year, allowing it to occupy 31 per cent of the local market share among VAMA members.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           April  9 , 2015 Subsribe Now !
• Cambodia targets VN investments Subcribe: Asean Affairs Global Magazine
• Indonesia, Thailand need to fix aviation issues, say experts
• Vietnamese companies take a shine to Myanmar
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Top pension fund to invest more in property
• Toyota Motor Vietnam undecided on local assembly
Asean Analysis                   April 3, 2015
• Asean Analysis April 3, 2015
In Laos, a Strategic Opening the United States Cannot Miss
Advertise Your Brand

Asean Stock Watch  April 8,  2015
• Asean Stock Watch-April 8, 2015
The Biweekly Update
• The Biweekly Update April 3, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand