1,000 people have only 63 cars, Ministry of Industry and Trade sets target of consuming over 1 million cars by 2030

Car production of a domestic enterprise - Photo: H.HANH

The Ministry of Industry and Trade has just released the draft decision of the Prime Minister on the "Strategy for developing Vietnam's automobile industry to 2030, with a vision to 2045" for comments.

Accordingly, the draft outlines the viewpoint of developing the automobile industry on the basis of "leapfrogging" the strong shifting trends of production and consumption, from using fossil fuel vehicles to fuel-efficient vehicles, electric vehicles, hybrid vehicles, solar-powered vehicles, biofuels and other new green fuels...

Nearly tripled the scale of consumption output

The automobile industry will develop breakthroughs in research, trading, and technology transfer of projects to produce and assemble electric cars, using new energy, and being environmentally friendly.

All business sectors will maximize their potential, associated with encouraging the expansion of domestic consumption with a large enough market size.

The draft sets a specific target that by 2030, the average car market growth will be 14 - 16% per year, the total number of cars sold will reach about 1 - 1.1 million units; the proportion of electric cars and cars using hybrid and solar energy will reach 350,000 units, domestically assembled cars will grow at a rate of 18 - 20% per year, the output will reach 600,000 - 700,000 units, and the consumption in 2023 will be 302,000 units.

By 2045, market growth will be 11 - 12%, with the total number of vehicles reaching 5 - 5.7 million units, including 4.3 - 4.4 million electric vehicles and vehicles using hybrid, solar energy, and green fuel, accounting for 80 - 85%.

Domestically assembled vehicles grew by an average of 13 - 14%, with output reaching 4 - 4.6 million units, accounting for 80 - 85% of domestic demand.

Meanwhile, according to statistics from the Institute for Industry and Trade Policy and Strategy, the annual production output of the entire industry reaches about 460,000 products.

Of which, average passenger cars reached 200,000 products, trucks and passenger cars were 215,000 products. The ratio of cars per 1,000 people in Vietnam in 2023 was 63 cars/1,000 people.

The draft also sets an export target of 14 billion USD for means of transport, components and auto parts by 2030 and 36 billion USD by 2024.

By 2030, it will be possible to start producing some important parts in the transmission, gearbox, and engine, capable of supplying 55-60% (in value) of components and spare parts for domestic automobile assembly and production.

By 2045, strive to become an important supplier of many types of components and spare parts for the regional and global automobile industry. Meet over 80 - 85% (in value) of the demand for components and spare parts for domestic automobile assembly and production.

Prioritize the development of environmentally friendly vehicles

On that basis, the Ministry of Industry and Trade has given specific directions. Including developing priority product groups including trucks and passenger cars with 10 seats or more, developing multi-purpose small trucks serving agricultural and rural production, and medium and short-range passenger cars.

For passenger cars with up to 9 seats, we will develop small, fuel-efficient personal cars, electric cars, hybrid cars, solar-powered cars, cars using biofuels and new green fuels...

For specialized vehicles, it is necessary to produce and assemble some types of vehicles with high demand (concrete trucks, tank trucks, vehicles serving security, defense, etc.); encourage the production of small multi-functional agricultural vehicles (combining cargo transportation with one or more features, etc.).

Regarding supporting industry, high technology will be approached and applied to manufacture important parts and components such as transmissions, gearboxes, engines, car bodies, etc. so that Vietnam can produce and take on the role of a link in the global supply and production chain.

With specific tasks, the ministry plans to research and build centers for research, design and manufacturing of automobiles in three regions; build a roadmap for converting from fossil fuel vehicles to electric vehicles, have policies to prioritize the development of production, assembly and import of electric cars; develop related infrastructure such as charging stations, fuel stations, transformers, build a system of technical standards, etc.

The Ministry also introduced policies to encourage the development of domestic consumption, including special consumption tax incentives; reduced registration fees for HEV, PHEV and BEV vehicles; support for customers in parking fees and environmental taxes for electric vehicles and those using new energy; support for the development of supporting industries, human resources, science and technology, etc.

Source: https://tuoitre.vn/1-000-dan-moi-co-63-o-to-bo-cong-thuong-dat-muc-tieu-nam-2030-tieu-thu-tren-1-trieu-xe-20240919084400677.htm