2025, opening up substantial opportunities for businesses to develop a
Experts, however, have said that the production capacity of the existing supporting industry remains poor, especially in terms of capital, technology, and experience. Production and the business environment also lack breakthrough policies.
According to the Vietnam Association of Supporting Industries (VASI), there are more than 350 enterprises in the automobile supporting industry around the country, of which some 80 percent are foreign-invested. Most of the domestic players are of small scale and have difficulties accessing capital to invest in technology, while links between them remain poor.
Luong Duc Toan, deputy head of the Division of Processing and Manufacturing under the Ministry of Industry and Trade’s Industry Department, said Vietnam’s automobile industry exhibits many limitations because domestic market demand is still modest, raising production costs compared to elsewhere in the region.