THE PRIME MINISTER

Decision No. 1829/QD-TTg dated October 28, 2015 of the Prime Minister on ratification of action plan for development of automobile and automobile part industry to implement VietNam’s industrialization strategy within the framework of Vietnam – Japan cooperation towards 2020 and an orientation towards 2030
Pursuant to the Law on Government organization dated December 25, 2001;
Pursuant to the Prime Minister’s Decision No. 1043/QD-TTg dated July 01, 2013 on ratification of Vietnam’s industrialization strategy within the framework of Vietnam – Japan cooperation towards 2020 and an orientation towards 2030;
At the request of the Ministry of Industry and Trade,
DECIDES:
Article 1. The action plan for development of automobile and automobile part industry to implement Vietnam’s industrialization strategy within the framework of Vietnam – Japan cooperation towards 2020 and an orientation towards 2030 under the Prime Minister’s Decision No. 1043/QD-TTg dated July 01, 2013 issued with this Decision.
Article 2. This Decision takes effect on the signing date.
Article 3. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People’s Committees of provinces, relevant organizations and individuals are responsible for the implementation of this Decision./.
The Prime Minister
Nguyen Tan Dung
 ACTION PLAN
DEVELOPMENT OF AUTOMOBIL AND AUTOMOBILE PART INDUSTRY TO IMPLEMENT VIETNAM’S INDUSTRIALIZATION STRATEGY WITHIN THE FRAMEWORK OF VIETNAM – JAPAN COOPERATION TOWARDS 2020 AND AN ORIENTATION TOWARDS 2030
I. FACTS
1. Position and role of Vietnam’s
Statistics produced by General Statistics Office in 2013 show that at the end of 2012, there are 385 enterprises engaged in the manufacture of motor vehicles and trailers which contribute 2.8% to the entire industry and create 78,906 employments. Among 385 enterprises, there are about 50 Vietnamese and foreign manufacturers and assemblers. However, Vietnam’s automobile industry is primarily controlled by 10 manufacturers being VAMA members (including 13 joint ventures and 6 Vietnamese enterprises). These manufacturers share a market of over 200,000 motor vehicles/year regardless of categories. Some major automobile brands of the world are also present in Vietnam such as Toyota, GM, Ford, Honda, Mercedes-Benz, etc.

Statistics show that in comparison with other industries, the contribution of Vietnam’s automobile industry to the economy in general and industry in particular is not significant. However, experience of other countries show that with appropriate development policies and a large enough domestic market, the automobile industry will bring enormous economic, social, and technological benefits. Vietnam is a middle income country with a large population. This makes it a potential automobile market. According to forecasts, the motorization period will take place from 2020 to 2025. Until then, if not produced at home, Vietnam will have to import automobiles to satisfy demand. Moreover, there is a dramatic shift of automobile manufactures and assemblers from Europe and America to Asia, which will change the global situation of the automobile industry. Therefore, development of the automobile industry needs to be considered a long-term solution for achievement of industrialization and modernization which will help Vietnam get deeper into the global value chain, stimulate development of relevant industries, take advantage of the global investment shift, prepare for the motorization period and satisfy demand of the people, and help reduce trade deficit.